Minnow is a term used to describe small cryptocurrency investors or traders. It originated from the concept of minnows swimming in a pond with a few large whales dominating the environment. This analogy has been often used to describe the relationship between novice and experienced traders in various markets, including cryptocurrencies.
In cryptocurrency trading, minnows are usually less experienced traders who lack knowledge about technical analysis and market sentiment, but may still make good trades if they can identify valuable opportunities early on. Minnows typically focus on smaller investments that have higher potential for returns when compared to larger investments made by more experienced investors (whales).
When trading as a minnow, it is important to understand the risks associated with investing in any asset class before making any decisions. There is no guarantee that an investment will pay off; therefore it’s essential to do your research before investing money into anything related to crypto-currency. Additionally, many exchanges offer tools such as stop losses and limit orders which should be considered when entering positions within the markets so you don’t get caught up in large swings of prices or unexpected drops of value without being able to take action quickly enough.
Finally, it is highly recommended for all new investors regardless of skill level or experience level not invest more than they can afford lose due to volatility and unpredictability within these markets at times – even though there may be lucrative moments where one could potentially benefit greatly from correctly timed trades!
