If you’re familiar with some of the ins and outs of cryptocurrency, especially Bitcoin, you’ve probably heard about the “whales” that rule the Bitcoin market. When stirred up, they can either drastically reduce or significantly increase the price of BTC. Understanding the impact of Bitcoin whales will benefit your own trading experience.
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Who Are the Whales on the Bitcoin Market?
Whales are users that hold a huge amount of BTC. Bitcoin whales are about 2,500 people that own 40 percent, which is approximately 1,000 BTC. These are big Bitcoin owners that can either make or break the BTC market. The activity of these whales greatly impacts the market. Even single transactions can lead to massive corrections in the price of BTC. Since they control a significant part of the market, whales can move the price in a certain direction.
For example, the BTC’s latest peak was achieved by big players’ activities. They started buying Bitcoins in December 2020 and assembled 47,500 coins, which made the price rise.
Do Altcoins Also Have Whales?
Altcoins are over 3,000 cryptocurrencies apart from Bitcoin in the market. Although Bitcoin has individuals that own massive amounts of the currency, there are similar whales that can affect Altcoins in the same way. The most intense Altcoin whales are found in Tether, LTC, ETH, and ADA. This concentrated wealth in a small group of users may cause negative consequences for others. Sometimes, the decisions made by such groups may lead to profit losses if you haven’t foreseen their actions.
Why Should You Buy BTC with Altcoins?
It’s often advised to buy BTC with Altcoins for several reasons.
- The number of Bitcoin whales is static but that of small-scale BTC investors is increasing rapidly, which is what makes the liquidity more stable than for Altcoins.
- BTC is also the most popular cryptocurrency out there, so if you want to invest in digital currencies, you need to have BTC, too.
- Bitcoin has lower volatility risks than other cryptocurrencies, although this doesn’t mean that it’s not volatile at all.
Based on the above factors, the conclusion is that Bitcoin remains a popular and reliable choice among users.
How to Purchase BTC with an Altcoin?
The best way to purchase BTC with Altcoin is through a reliable exchange website, such as Godex.io. It is well-known as a speedy platform that offers anonymity, low fees, and no exchange limits.
- First, select the cryptocurrencies you want to exchange. In this case, you’re buying BTC with XMR, so you will send XMR and receive BTC.
- Next, submit the wallet address you want to send the BTC to. You have to open a BTC wallet before you start exchanging the currencies.
- Then, deposit the XMR coins you want to convert to BTC. The Godex website will calculate how much XMR to BTC you get after exchanging.
- After depositing the XMR, wait for Godex to confirm the deposit. Godex will look for the best exchange rate before converting your currencies. It will take between five and thirty minutes for the exchange to be complete.
Bitcoin and some Altcoins have whales that guarantee less volatility and relative stability if their actions are correctly predicted. Altcoins also follow the price movement of Bitcoin and have a higher volatile risk, so why not convert your Altcoins to BTC using the Godex platform.
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