Before we dwell into crypto whale watching, we need to understand what a crypto whale means. A crypto whale could refer to any entity, organization, group or individual. But, the unique demarking feature of a crypto whale is that the entity has sufficient cryptocurrency required to influence the crypto market.
The reason why these market players are called whales is self specific. They’re bigger than most market players.
A crypto whale is expected to hold a single type of cryptocurrency in magnanimous amounts, which is frequently over 10% of the total market value. So, the entity can influence the cryptocurrency’s value. Now, there are even cases wherein a single crypto whale holds multiple cryptocurrencies in significant amounts.
Why Track Crypto Whale Activity
When the top wallets hold a cryptocurrency; its value shoots up or down. But, this is subject to the activity taking place as well. Now, when you start using a Crypto whale tracker tool, you’d be in a position to presume significant market movements. This way, making informed decisions regarding when to trade and when not to trade simplify.
At the times when large holdings of currency are held by crypto whales, the amount available for trading is limited. Currency’s liquidity, also, correspondingly, reduces. So, the currency becomes more difficult to swap, be it for cash or other tokens.
Let us consider how moving currency in large amounts renders an effect over its value.
- Exchange inflow is large in this case, because the crypto whales have put in a significant amount of cryptocurrency into an exchange. The, prices tend to drop in such cases.
- If a crypto whale put currency in their wallets after pulling it out of an exchange, it signifies a big exchange outflow. Currency, hence, is moved away from circulation, and the prices rise.
It is easy to see that when the markets react to crypto whale’s transactions, the value of the cryptocurrencies transform. But, traders do not assume whale’s motives in all cases. Tracking whales is an activity, still, to be conducted such that you can anticipate changes in the crypto markets in advance.
Operation of a typical Crypto Whale Tracker
One of the ways of defining a crypto whale tracker is as a blockchain explorer. The tracker works by taking the blockchain’s raw data. This way, the data comes out to have a visual representation that is easy for the users to understand.
The information that is recorded on the blockchain leverages digital distributed ledger technology (DLT). In a chronological order, this central database stores the transactions in blocks. This bears similarities to links in a chain.
Upon being added, a block forms permanent and secure record of asset ownership. It cannot be deleted or altered.
The basic mechanism of a whale tracking app is that it first derives the raw data from the blockchain and upon converting an analyzing it, reports on the movements of crypto whales.
Top whale tracking tools that become advantageous for you in the market scenario:
- Whale Alert
As a blockchain alert and tracking service, Whale Alert tracks more than a dozen blockchains. HIVE, Etherium, and Bitcoin are herein included.
Whale Alert forms the ideal whale tracking tool if one is a beginner. This is primarily because it’s a free option. If one goes for the free service, alerts aren’t included.
Instead, the access to data is made available for the traders only if the transactions exceed $500K. Only the transaction history for the hour gone by is displayed.
For merely $9.95 monthly, Whale Alert offers a personalized alert service. All transactions exceeding $100K are herein covered.
If one goes for Whale Alert’s $29.95 monthly plan, one gets access to all transaction over $100K taking place daily.
On the ClankApp website, Crypto Whale transactions are tracked in real time. They are also tracked on Twitter and Telegram.
A prominent drawback characterizes ClankApp, which is the shortage of comprehensive graphs and charts. A clearer picture of a crypto whale’s transactions becomes difficult to garner over time. But the core advantage of ClankApp is that the tool is free to use.
The right way to use ClankApp is to get push notifications and email alerts, or subscribe to Twitter and Telegram feeds. For free, 24 blockchains are tracked by the tool’s website. This makes it an ideal tool for whale-tracking beginners. But, the developer is open to receiving voluntary donations.
Getting a Whalemap account is free, but one has to make efforts to comprehend the information being shared. This problem too is addressed by Whalemap, an information filled website loaded with tutorials on reading charts and graphs.
Also featured on the website are courses in trading and reading charts and blockchain. These courses are accessible in the website’s learn section. For whale watching beginners, the website is ideal.
- Whale Watchers
Whale Watchers, while being an NFT, is also a crypto whale tracker tool. Free service is herein available. But, Captain’s Club is also available, which is a paid advance tracking service. In the latter, private Discord servers, push notifications and faster alerts are made available and interaction with other members is possible.
On pays the Captain’s Club membership fee in Ether, so the prices are also variable depending on ETH’s value.
- WhaleBot Alerts
WhaleBot Alert is only one of the few free Telegram communities that one can subscribe to receive crypto whale transactions in real time. They share a reasonable bit of information about transactions and whales. But this information is remarkably useful, and aids a trader with presuming big market movements. Occasional charts and heat maps are also herein provided.
An experienced trader is likely to be in a better position to use and leverage the tool to his maximum advantage, because the majority of alerts are focused on individual transactions without sharing history or context.
It is of no perspective whether you intend to take action based on a whale’s movement. Watching crypto whale activity stands to benefit you.
When you use a crypto whale tracker to study the activities of major market players, learning about the market simplifies. Crypto whale trackers stand to benefit experienced traders as well. By anticipating the ups and downs, they can leverage profitable opportunities to their advantage as and when they appear.
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