In cryptocurrency, a whale refers to an investor or trader who holds a large amount of cryptocurrency, especially Bitcoin. These investors have significant influence on the cryptocurrency market due to their great trading power.

Characteristics of whales

1. Large amount of assets: They have thousands or even millions of dollars in cryptocurrency.

2. Market influence: They can affect prices with their operations.

3. Trading power: They can move the market with their purchases or sales.

4. Visibility: They are often monitored by other investors.

Types of whales

1. Institutional investors (investment funds, banks).

2. Wealthy individual investors.

3. Miners (cryptocurrency producers).

4. Professional traders.

Market impact

1. Volatility: Whale operations can cause price fluctuations.

2. Liquidity: They can absorb or provide liquidity to the market. 3. Trends: Can influence market trends.

Risks and challenges

1. Extreme volatility.

2. Government regulation.

3. Cybersecurity.

4. Competition.

Sources:

1. Investopedia.

2. Coindesk.

3. CryptoSlate.