Community Submission - Author: John Ma
The term “whale” is used to describe an individual or organization that holds a large amount of a particular cryptocurrency. There is no exact cutoff threshold for this definition, but some say a Bitcoin whale should hold at least 1,000 BTC. A whale may also be defined as a person that has enough coins or tokens to cause a significant impact on the market prices, either by buying or selling large amounts.
Although we often call a wealthy individual a whale, the term can also describe an institution or organization that holds a significant amount of cryptocurrencies, and thus, have the power to move the markets up and down. In the crypto space, examples of such whales include investment groups like Pantera Capital, Fortress Investment Group, and Falcon Global Capital.
In practice, however, most of those big players don’t really trade on conventional cryptocurrency markets, as their large orders could overwhelm the volume available on the order books. Instead, they buy and sell coins off the exchange books, in what is known as Over the Counter (OTC) trading.
When it comes toProof of Stake (PoS) blockchains, whales have a considerable influence in on-chain governance processes (more funds at stake gives them more voting power). For these chains, the presence of whales can be both a good sign (in terms of stability) as they have strong incentives to act honestly and help the network grow. On the other hand, having whales controlling the majority of funds can bring a negative effect in regards to power centralization.
FAQs
About me. Founded in 2018, Binance Academy is a hub for free crypto and blockchain education.
What is whale in cryptocurrency? ›
Crypto whales are individuals or entities that hold large amounts of cryptocurrency. They may have an influence on the price and liquidity of a cryptocurrency. The activities of these entities are observed by the crypto community due to their potential to affect the market.
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Binance is generally considered a reputable and reliable cryptocurrency exchange. However, potential users should carefully consider their individual needs and risk toleance before deciding to use the platform.
How to join Binance Learn and Earn? ›
All KYC-verified users will be eligible to participate in this round of "Binance Learn & Earn" to receive a predetermined amount of ASTR on a first-come, first-served basis. Qualified users can begin to read the article(s) and watch the video(s) anytime from now, and complete quizzes while token supplies last!
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How to earn free cryptocurrency: 11 easy ways
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How much money do you need to be a whale in crypto? ›
Definitions vary, but a Bitcoin whale is generally referred to as a wallet that owns at least 100 Bitcoins -- or $3.2 million worth of Bitcoin as of this writing.
How many Bitcoin to become a whale? ›
Bitcoin whales are individuals or entities holding large amounts of the digital currency and have the potential to impact price movements with a single trade. The widely accepted minimum threshold for a bitcoin whale is 1,000 BTC.
What crypto do whales buy? ›
These whales are often associated with major cryptocurrencies such as Bitcoin and Ethereum, though they may also hold significant amounts of various altcoins.
How do you make $100 a day on Binance? ›
If you put in $1000 on Binance and track a 10% rise on one pair, you will have made $100. Repeat this every day and you will be making $100 a day, every single day.
In response, Binance and other investors opened Binance.US, a separate exchange designed to comply with all applicable US federal laws, which nonetheless is banned in six states: Hawaii, Idaho, Louisiana, New York, Texas, and Vermont.
Will Binance refund if scammed? ›
If you believe you have been scammed on Binance, you should contact their customer support team immediately and provide them with as much information as possible about the scam. They may be able to investigate the situation and potentially refund your funds if they determine that you were indeed scammed.
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Follow the steps below to receive payments from another Binance Pay user.
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- Step 1 — Navigate to the 'Funding Wallet' Page. ...
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Find Your Wallet Address: Under the cryptocurrency you've selected, you'll find the "Deposit" option. Click on it, and you'll see your unique wallet address for that cryptocurrency. This address is where you can receive that specific cryptocurrency into your Binance wallet.
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Here are some tips on how to trade on Binance for beginners using $100:
- Choose the right trading pair. When you're trading on Binance, you need to choose a trading pair. ...
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A Binance fee is charged to cover the outflow of each virtual currency from the account. The amount is systematically adjusted based on certain factors, such as network congestion, the type of token and the volume of the transaction, and thus can fluctuate.
How much is the fee for Binance? ›
Binance has significantly lower fees than Coinbase. On most trades, the platform levies a 0.10% fee. For bank transactions, it charges 0.10 percent, and for all credit or debit card purchases, it charges up to 2.10 percent.
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Pay is a peer-to-peer payment feature that allows Binance.US customers to send and receive crypto from other Binance.US users. Pay transactions feature zero transaction fees and settle instantly, no matter what cryptocurrency you transact with. The feature is free to use with no fees.
