Every investor who is interested in cryptocurrencies should use at least a few tools that facilitate making a profit. We have already written about the best wallets for Bitcoin storage – so it’s time to present a tool that facilitates predicting cryptocurrency price fluctuations.
Who is “a whale”?
The word “whale” is often used in the cryptocurrency communities. It defines the user’s wallet with a large amount of virtual currency – for example, Bitcoin. These wallets are usually anonymous.
Investors and crypto fans say that it is the “whales” that control cryptocurrency prices. Depending on the actions taken, they can arouse euphoria or panic and cause a sudden purchase or sale of a given cryptocurrency.
What is the Whale Alert?
Whale Alert is a website associated with a Twitter account. The site provides free real-time tracking of large cryptocurrency transactions. The preview contains the date, time, amount and information about where and where the funds were sent from.
Twitter works differently – posts appear when really huge amounts of cryptocurrencies are transferred. It is also possible to enable live view and receive notifications whenever a large transfer occurs.
Transaction tracking – how does it work?
At the moment, Whale Alert offers a preview of several of the most popular cryptocurrencies: Bitcoin, Ripple, Ethereum, Stellar, Tron, EOS, BNB, NEO, Tezos, ICON and STEEM.
Storing cryptocurrencies on stock exchanges involves the risk of theft – that’s why investors most often store their funds in wallets disconnected from the Internet, so-called “cold wallets”. Observing transfers gives you the opportunity to predict whether the price will rise or fall.
Usually, when an anonymous user transfers a large amount of cryptocurrency to the stock exchange, this can result in a price drop – supply is rising, demand does not change. In the case of a transfer from a stock exchange to a private wallet, the opposite can happen – prices are rising, as quantities have been decreased. However, this is not a rule.
Whale Alert is a useful tool for speculation. It is especially recommended for those who want to keep up with the market, but do not have time to control prices and transactions for several hours a day.
55,388 #BTC (408,904,976 USD) transferred from unknown wallet to unknown wallet
— Whale Alert (@whale_alert) December 6, 2019
