Post
Topic
Board Economics
Merits 1 from 1 user
Re: What is the difference between banks and big whales in crypto?
by
CarnagexD
on 22/05/2023, 11:57:50 UTC
⭐ Merited by fillippone (1)
Banks are earning big profit from our deposits, they earn bigger than the interest that we get from our deposit because they put a bigger interest rate through thier borrower's or lenders, i think bank is not too far from big whales in crypto they buy or collect coins in dip and they sell in bull and they earn bigger from the holders that sell at loss  they are almost the same or what? What dou you think?

Here's a simple analogy, "All banks can be a whale, but not all whales can be a bank."

A bank can be an investor putting a large sum of funds in crypto and moving the price. But not all large funds can have the authority handled by the banks. Being a whale is just a term used for market participants who have millions of dollars in exposure that would make the price of any coin move impulsively. Banks are there to centralize and regulate the money of those people who trust them. Whales depend on the market and financial environment to make money trading higher or lower.