Is It Necessary to Track the Activities of Crypto Whales as An Amateur Trader?

As a trader, you already know the power wielded by crypto whales. Whales can change or sway the market in a particular direction. There have been several moments where a whale or whales have managed to alter the course of a coin single-handedly.

Looking at the Bitcoin chart, you immediately realize that a Bitcoin whale, even with a single coin, has the power to change the course of the asset. For years, whales have had a huge impact on the crypto market. However, no one knows just how big the impact has been. Having said all this, the main question that pops up is, is it advantageous to follow crypto whales? Especially as an amateur trader?

Well, if you need the answer, we’ve got them. Read on.

Information is power

Being informed about the proceedings of the trading world has never been a disadvantage. As an amateur trader, it’s extremely advantageous to sacrifice some time to follow what the whales around the globe are doing. By doing this, you will enter the market with more information that the average trader lacks. This means you will perform better because you did more research than a trader who isn’t informed about the strategies of crypto whales.

However, research doesn’t stop at whales. Being aware of global events that could affect the market is also important. Suffice to say, information is power; the more information you have while entering a market, the better you’ll perform. Being well-informed means that your decision in the market will rely thoroughly on compiled research instead of speculations.

Nonetheless, it’s important to note that this doesn’t directly translate to: amateur traders should always track crypto whales. Of course, tracking whales and their activities is an added advantage if you have the time. However, committing to your full-time job and finding time to analyse the market at the same time is almost impossible. This is because the edge gained from tracking whales is quite small for amateurs, and only expert traders can track whales effectively.

Know your niche

The profit you will realize from following crypto whales is directly proportional to risk tolerance and investment strategies. If you only trade consistent and reliable tokens such as BTC or ETH, it’s highly unlikely that you will benefit from tracking whales. This is because these coins are more rigid and usually survive any whale activity.

On the contrary, if you find out that a dogecoin whale has been massively accumulating the coin, causing its price to rise, then an appropriate move will be to acquire some dodge. By taking up this advantage, you’re also taking up considerable risk; if the coin flops.

Gathering information about crypto whales and not using it alongside your investment strategies is simply a waste of time and resources.

Taking risks

It’s almost impossible to predict when the next great opportunity will come your way. Even for a passive trader, taking a little risk on a spotted opportunity is vital. And tracking whales can help you land such opportunities. Several people have completely changed their lives by tracking and riding with the whales. Like any other profession on the planet, the amount of knowledge you’ll gain on whales is directly proportional to the time and effort you’ll put into it.

However, if you find it difficult to track whale activities, don’t worry. Knowing the whereabouts of whales isn’t compulsory for trading. Just stick to your strategies, perfect them, and have a good risk management plan.

Image Source: Adobe Stock

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.