Should Amateur Investors Track What Crypto Whales are Doing?
News Publisher Dec 30, 2022 01:05
As you may already know, crypto whales have a ton of sway and influence on the crypto market, and there have been more than just a few instances where a crypto whale has managed to single-handedly change the course of a coin all on their own.
As you may already know, crypto whales have a ton of sway and influence on the crypto market, and there have been more than just a few instances where a crypto whale has managed to single-handedly change the course of a coin all on their own.
Just take a look at the BTC price chart - even with just one coin, crypto whales have had an astronomical influence on the course of crypto, and no one truly knows the net impact that they have been able to have on the markets. Taking all of this into consideration; would it be a good idea for amateur investors to track what crypto whales are doing? Well, let’s find out.
Knowing What Is Going On In The World Is Always a Positive
To give it to you straight; more information is always better. If you have the spare time to monitor what all of the top crypto whales are doing, you will undoubtedly be better off than those you choose not to bother, and this means that you could end up performing better than the average crypto investor if you are willing to spend a portion of your time researching.
This doesn't only apply to crypto whales, but to the world as a whole. The more information you are able to compile about current world events and recent changes that could affect the markets, the better, and you will be able to use this knowledge to great effect after just a little practice.
However, that’s not to say that keeping track of what crypto whales are doing is recommended for amateur investors. Sure, it's a great thing to do if you have the time and are serious about crypto, but if you are someone who has a full-time job and cannot afford to track the markets all day, then you are likely going to be able to get by just fine.
The advantage gained from tracking crypto whales is minimal at best, and only experienced investors will be able to put this information to use in a way that could bring them more profits.
It Depends On What Coins You Invest In
The amount of benefit you are going to get out of tracking what crypto whales are doing is going to directly correlate to your investment strategies as well as your tolerance for risk.
If you only tend to stick to consistent and/or reliable cryptocurrencies such as bitcoin, ethereum, ripple or tether, then keeping up-to-date with what crypto whales are doing is going to have practically no effect if you are not willing to invest elsewhere.
This is simply because coins akin to this have more stability, and even if a crypto whale were to cause pandemonium for any of the aforementioned coins, they are likely going to survive in the long run.
On the other hand, if you notice that a crypto whale is buying up a ton of dogecoin and is making the price rise drastically, then this could be a pretty good indication for you to jump in. The only way for you to take advantage of this would be to take on a little risk in the case that the coin in question flops.
If you are willing to actually make use of the information you gather by adapting your investment strategy, then keeping track of what crypto whales are doing could be enormously beneficial. If not, then it might just be a waste of time.
Opportunity Strikes When You Least Expect It
You can never know when a huge opportunity is going to present itself. Even if you do happen to be somewhat of a passive investor, taking on a little more risk on occasion can be a great choice if you spot an amazing opportunity, and keeping up with crypto whales can be a prime source of providing you said opportunities.
There are more than just a few people who have become millionaires just because they rode the wave of a crypto whale when he/she was tinkering with the markets, and if you have what it takes to put yourself out there and potentially lose some crypto in the pursuit of otherworldly success, then knowing what crypto whales are up-to could just end up being incredibly advantageous
Truth be told; you can put as much or as little effort into investing as you may wish. The more time and effort you spend on tracking world events and keeping up with the goings-on of crypto whales, the more knowledge you are going to have on hand to accurately predict the markets, and it goes without saying that you will have an advantage if you choose to verse yourself in all things crypto.
However, if you do not have the time to try and track every little fluctuation and deviation, this is perfectly fine too - tracking what crypto whales are up to is certainly no requirement for investing. We wish you all the success in the world, and we hope your trading journey goes smoothly.
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