A “Fish,” also referred to as a “Minnow,” in cryptocurrency, describes an individual who holds a relatively small amount of cryptocurrency assets. These players have minimal influence on market trends and are often at the mercy of larger market players known as “Whales,” who have the power to significantly influence market prices through their substantial transactions.
Fish, due to their limited holdings, are unable to notably impact the market share. However, as their cryptocurrency investments grow, they can evolve into “Dolphins” and eventually “Whales.” A Dolphin in the crypto context is defined as an individual or entity capable of placing large orders, such as 1,000 BTC or more on cryptocurrency exchanges. These players start to have a more pronounced effect on market movements and pricing.
Whales are typically institutional investors or hedge funds that conduct massive transactions, far exceeding those of Dolphins. Their large-scale orders are usually processed through specialized exchange arrangements and are not visible to regular retail traders. The market activities of Whales can lead to increased volatility, substantial market shifts, and changes in liquidity. They often set the market trends, influencing the speculative actions of smaller investors like Fish and Dolphins.
The categorization into Fish, Dolphins, and Whales helps illustrate the varying degrees of influence different investors have in the cryptocurrency market, ranging from negligible to highly impactful.