Types of marine species in the cryptocurrency world
Although there is no official and universally accepted classification, several marine species terms have become popular in the cryptocurrency world to refer to investors who hold large amounts of digital coins. These terms, for the most part, are metaphorical and seek to convey the idea of the buying power and influence these investors have in the market.
The most common denominations of marine species in the crypto world are:
- Whales: This is probably the best known and most commonly used term. It refers to investors who own such a large amount of cryptocurrencies that their actions can significantly move the market. Like a whale in the ocean, their movement can cause large waves.
- Sharks: Similar to whales, sharks also represent large investors, but are often associated with a more aggressive or predatory approach to the market.
- Dolphins: Dolphins often represent investors with a smaller amount of cryptocurrencies than whales or sharks, but still large enough to have a noticeable impact on the market.
- Shrimp or prawns: At the opposite end of the spectrum are the shrimps, which are the small investors who hold a relatively small amount of cryptocurrencies. Their individual influence on the market is minimal.
Why are these terms used?
Terms related to the marine world are easy to remember and create a clear mental image of the hierarchy and power in the cryptocurrency market.
By using these terms, investors feel part of a community and can identify with a specific group.
These catchy terms generate interest and curiosity in the world of cryptocurrencies, attracting new investors.
What factors determine an investor’s classification?
Several factors determine the ranking:
- Number of cryptocurrencies: The total amount of cryptocurrencies owned by an investor is the most obvious factor.
- Transaction volume: The frequency and size of transactions made by an investor can also influence their ranking.
- Market impact: An investor’s ability to move the price of a cryptocurrency is another important factor. Investment strategies: Long-term investors and speculators often have different objectives and strategies, which can influence their ranking.
Why is it important to know these denominations?
Understanding market dynamics and knowing these terms helps to better understand how cryptocurrency markets work and why prices can experience large fluctuations.
Identify potential opportunities: By following the activities of whales and sharks, you can identify potential investment opportunities.
Protect your investment: Knowing the strategies of big investors can help you protect your investment and avoid falling into pitfalls.
Facts to keep in mind
- There is no exact limit: There is no fixed amount of cryptocurrency that defines a whale or a shark. Limits may vary depending on the cryptocurrency and market conditions.
- An investor’s ranking may change over time as the market evolves and investors buy or sell cryptocurrencies.
Disclaimer: The information set forth herein should not be taken as financial advice or investment recommendation. All investments and trading involve risk and it is the responsibility of each individual to do his or her due diligence before making a decision.
