What Is a Minnow?
A minnow refers to a small fish or an individual or organization that is considered insignificant or small. This term is also applicable in the realm of cryptocurrencies, where it pertains to individuals who possess a relatively small amount of digital assets. When minnows engage in buying or selling their crypto, it typically does not have a substantial impact on the overall market.
In contrast, whales are a small group of individuals and institutions that possess significant amounts of cryptocurrencies such as Bitcoin. If whales decide to sell their holdings, there is a genuine risk of affecting spot prices on exchanges.
Although uncommon, even a minnow can have a noteworthy impact. Some altcoins experience extremely low trading levels and lack liquidity, leading to significant price shifts even with a modest sale.
There is no precise definition for the amount of crypto investment that qualifies someone as a minnow. However, research indicates that the majority of investors fall into this category. For example, most addresses on the Bitcoin blockchain hold less than 0.1 BTC, collectively owning only 1% of the circulating BTC.
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