The most common methods for observing whale activities include monitoring known whale residences, order books, and drastic swings in market capitalization and trading on cryptocurrency exchanges.
Every so often, whales are held accountable for dramatic price changes in both the cryptocurrency and traditional markets. Given their capacity to influence market prices, it’s critical for all Bitcoin (BTC) investors to understand the distinctions that distinguish a whale from a trader.
Bitcoin whales are Bitcoin wallets that contain excessive amounts of BTC. The prices of cryptocurrencies are negatively affected when large quantities of BTC is dumped or transferred from one wallet to another, affecting smaller traders. As a consequence, monitoring real-time Bitcoin whales allows little-time traders to profitably trade in a fluctuating market.
Tracking down and monitoring whales, especially for the purpose of preventing fraud, is as simple as looking at readily accessible trading data from crypto exchanges and services. The four primary ways to follow whale activities include keeping an eye on known whale addresses, order books, rapid fluctuations in market capitalization, and trades on crypto exchanges.
Following known whales is a good idea for smaller investors since the prospect of coming upon a whale trade rises significantly. Furthermore, monitoring market changes via order books and trades on crypto exchanges indicates incoming whale transactions, which may be used to profit during price volatility.
Cointelegraph recently published an economic report in which they stated that on-chain data suggested that the largest Bitcoin hoards were hesitant to act at current prices. BlockTrends analyst Caue Oliveira concurred with the findings, referring to a “hibernation” among whale wallets. He continued: “Transaction volume moved over a short period of time can be tracked based on denominated in BTC and USD, as well as institutional movements, commonly known as “whale activity.”
Crypto Tax Calculator Australia is the perfect application for those trading with crypto currency. The simple and easy to use platform, takes the hassle out of crypto tax calculations. Whether you are an individual or an accountant, Crypto Tax Calculator makes tax time a breeze. So why wait? Get started today!