What is the difference between banks and big whales in crypto?

[kaseygriffin]

It is true that banks are capitalizing on profits from customer deposits through investing in more profitable financial products. However, the comparison between banks and crypto investors is not entirely accurate. Banks operate on the regulations and power of the entire financial system, whereas a cryptocurrency is a decentralized financial platform and does not depend on who has control over the system. And cryptocurrency trading is also risky and technically complicated, especially for those just starting out. Meanwhile, banks provide users with a greater confidence in safety and security in the storage and use of their funds.

[irhact]

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?

They're not the same, banks are using their costumers money to make investments and make profits but give the customers very small percentage of the profits made. Banks print money, banks control the flow of money. Banks are more like exchange as exchange also use customers money for their investment that's why just like the banks, they want more deposit more than withdrawals.

Crypto whales are different, the profits they make is because of their own investment and not because they're depending on people money. We have whales in form of exchanges that use customer money to manipulate the market but if caught they'll collapse like FTX.

[rby]

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?

They're not the same, banks are using their costumers money to make investments and make profits but give the customers very small percentage of the profits made. Banks print money, banks control the flow of money. Banks are more like exchange as exchange also use customers money for their investment that's why just like the banks, they want more deposit more than withdrawals.

Crypto whales are different, the profits they make is because of their own investment and not because they're depending on people money. We have whales in form of exchanges that use customer money to manipulate the market but if caught they'll collapse like FTX.

You didn't mention one big function of banks that make them have a striking resemblance with the crypto whales, even the OP that created the post didn't even capture it.

As whales to cryptocurrency market, so also banks to forex market. Whales are the institutional traders in cryptocurrency who ordinary traders follow in the market While banks are the institutional traders in the forex market who ordinary forex trader follows. That is what they have in common.
So, it will be more correct to say that banks are like whales and also like exchanges in cryptocurrency world.

[YUriy1991]

If look at it, it is very different, following the pattern of work. I will try to explain one by one. Banks in carrying out their business carry out various ways so that customers want to put their money in the bank by promoting their superior programs such as loans for their customers. Those who need it can apply with the terms and conditions apply. So, at this point, they are benefiting from the monthly installments of their customers. For big whales, the pattern of work is to take advantage of market conditions, especially when there are repeated corrections, they buy during a downturn and resell it in a bullish market.

The most striking thing here, in my opinion, is from a security point of view. Bank Users are highly regulated and insured which means customer deposits are protected up to a certain amount. Meanwhile, the crypto market is largely unregulated and highly volatile with various risks ahead. So. in my opinion both are different entities with different Patterns and concepts.

[LastKiss]

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?

Well it's different, whales buy crypto when its at a low price meanwhile why don't we buy crypto at a low price too? Banks got their profit from nowhere because of the Bank interest but for crypto especially investment it's increasing because other people buy Bitcoin which makes Bitcoin prices always increase.

[yhiaali3]

There are many differences, banks are centralized and controlled by the government and control its decisions and are subject to its laws, but the whale works alone and it can be said that it is decentralized because it does not control any coin completely, also it works in secret and may not be subject to the laws of the government.

Banks earn from interest and deposits, but they give some profits to investors and the government, while the whale earns by manipulating prices and swallowing all the profits alone without the participation of anyone.

Another thing is that if the banks go bankrupt, they will cause the investors’ money to be lost. As for the bankruptcy of the whale, it affects only him and no one else.

[davis196]

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?

No, they are not the same. Most banks are trading stocks and bonds, while the crypto whales are trading cryptocurrencies, which have way higher risk than most stocks and bonds.
The banks use depositor's money and loaned capital. The crypto whales usually invest their own money(I exclude the crypto scammers like Sam Bankman-Fried, who became crypto whales by stealing people's crypto).
The banks offer various financial services to the people, the crypto whales work mostly for themselves(some crypto whales might own big crypto exchanges and crypto companies).

[Hamza2424]

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?

This is Unfair comperison both are different entities in the financial and sector and by their mean of definition. Still in your views my words are..

Their Strategy seems to be the same but it's not the same in fact. Understand Whales accumulate and they show patience and then they never sell all it to like getting fixed interests their profits are way bigger than the Fixed APY's, Also Banks are the institutes that have many sources to generate money but the whales are fully dependent on the market. Banks had nothing to do with the market and its circulation circle but on the same point Whale's whole investment results are dependent on the market and circulation.

-Banks Earn by:

• Intrests
• Transection Fees
• Imposing different Policies / Investments
• Service Fees

-Whales Earn by:

• Investment returns
• Trading
• Staking

[DrBeer]

First you need to understand the difference:
- Financial market
- Crypto market

The financial market is built on the flow of money, schemes for their multiplication, etc. actions aimed at "money makes money

The crypto market is almost completely speculative, which attracts a lot of people in search of FAST and / or BIG profit, as is customary on such markets.

This is the big difference - the financial sector makes a profit regularly but without fantastic X's. Crypto market - manipulates the market, "chases waves", and earns "in a long" position

[bayudndy]

I think the difference between banks and crypto whales is that banks are usually corporate organizations that even have their own government behind them to help them, so in times of crisis, the government can help them a bit. Crypto whales are usually individuals who hold a large amount of cryptocurrency and do not share it with other individuals or organizations.

In addition, in terms of profits, banks have to distribute profits to shareholders according to the proposed discussion; besides, whoever holds more shares will get more profits. As for the crypto whales, they will make a profit for themselves. Whether they lose or gain, they will bear it on their own and not share it with anyone else.

[avikz]

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?

Banks and whales do not have any similarities at all. Their modus operandi is entirely different. Banks earn on interest rate spreads and whales earn by buying low and selling high. So they are very different.

Also banks use public money to generate income and whales are mostly individuals and corporates using money from their income. Don't mix these two different types of entities.

[EarnOnVictor]

The context of banks and whales could only be compared in trading and investment as they do not represent the same fundamentals. Banks are companies/organizations working in the financial institution, but whales could be an individual or a body, they don't necessarily need to work in any financial institution. However, what they mainly have that makes them called "Whales" is their big money investment in cryptocurrencies.

Now, banks and other financial institutions are also investing in cryptocurrencies to increase the liquidity of the market, so they could also arguably be called whales if the context must subsist with cryptocurrency in the general sense.

[demonica]

I feel like the only similarities between banks and whales is that they have big amount of funds they use. However, they have more difference rather than their similarities. First is, banks are an institution run by people while whales are the people themselves. Banks earn their profit through their financiall services with a corresponding interest and fees. While whales earn by trading and investing in crypto market. Banks take advantage and benefit from othe people's money hiding in the mask of financial service they provide. But whales don't provide anything to others and they use their own funds.

Rather than the thing you've mentioned, what else made you think that they're similar cause there were more difference than their similarities?

[Solosanz]

There are many difference between banks and whales, banks are regulated, never lose, has access to everyone holdings and can easily manipulating the market. While whales aren't regulated, sometime can lose, no access to everyone holdings, and could manipulate the market. Whales has a chance to control the market, but banks have 100% power to control the market.

This mean, banks is more dangerous than whales.

[KiaKia]

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?

Is this the only fault that you see in Banks? banks are very good at using their customers fund for other things like trading and running other business without informing their customers, believe me, they are very good at it, because I have a family member who works in the bank and he have worked is different banks before, he told me how banks use customer money to run other businesses and investments, many people don't know this.

It's like the bank is telling us that we lack the knowledge to use our money to get better Returns and since they're willing to keep our money for us, then they have the right to make use of the money for their own gains.

[Cookdata]

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?

The way we have whales in crypto, the same way we have them in other financial sectors, we have big people in banks that act as the CEOs with big reasonable amounts of money. In crypto, they are usually higher institutions but the government groups who operate most of the banking industry and the common thing between higher institutions and the banking whales are there to make money and don't get offended because they dominated the crypto space, they are much needed to provide liquidity and volume to increase the interest of other investors, they may have high stakes in crypto projects which yield them high profits but without them, the profits they will earn may be worth nothing.

[inthelongrun]

Are they really worth comparing because both are too different from each other?

Banks are more focused on offering services to the public. Banks are more like crypto exchanges that cater to a lot of clients and earn fees thru their services. Banks offer interest on deposits and loans.

Big whales in crypto on the other hand are just huge investors and traders. And even some of these whales are directly or indirectly banks. Banks with each wide services and business ventures also have departments that take care of their investments and trades.

[Findingnemo]

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?

Banks create money and inject it to the economy via customers in the name of loan and the money is nothing but some ink and paper combined whereas a whale is an individual who bought huge amount of crypto assets with their real money and now has the enough asset value which can manipulate the price of crypto assets but it will work only in short term and whale risking the crypto assets too just like everyone else.

They aren't doing anything bad, they just use the situation to make more money with the money they have and if you see this as crime then every business in this world is following that strategy.

[uneng]

Both are powerful and influent inside the niches of the economy where they are inserted, and become even more similar when you consider crypto whales as companies such as Binance, Coinbase, FTX and others. Actually, the goal of many crypto whales is to become crypto banks, although the volatility and speculative characteristics of this market makes it hard for them to fulfill their objectives. It's hard for them to bring the average customer from the traditional banking system to crypto environment. But if they did it, I guess there wouldn't be many differences between banks and whales anymore...

Probably protectionism from the governments towards traditional banks would be still the main difference when compared to the services provided by crypto whales. While one is endorsed and favoured by public policies, the other is totally discouraged.

[bluebit25]

Banks and crypto whales have significant differences, and their focus and primary activities are also distinct from each other. Banks are financial institutions that provide a variety of services to people. They generate revenue through fees, interest rates, and other financial services for a large group of customers. Crypto whales hold a significant amount of cryptocurrency in their portfolios. By buying, selling, and holding various digital assets, they can have a significant influence on the market.