The Ultimate Guide to
🚀
Tracking Crypto Whales
.
The Path to 1000x Gains
DAMI DEFI
MAY 06, 2024 ∙ PAID
4 Share
Welcome back to Wealth Vault. When getting into
crypto, most investors hope to catch the next 1000x
altcoin, become mega-rich, and retire early.
However, only a few realize those dreams. The fact
is, there are hundreds of new coins launching daily,
making it almost impossible to keep up and catch
the best plays.
The truth is that when everyone is talking about a
coin, say on X, it has already pumped too much. To
capitalize on a potential 1000x move, you must be
ahead of 99% of the market, and the only way to
manage this is by tracking smart money.
The goal is to leverage blockchain data tools that
allow you to identify the wallets that turned a
relatively small investment into millions of dollars
on the back of a low-cap token that went viral. By
carefully analyzing their trades, you can try to
anticipate their next moves on other trending
tokens.
Smart Money Tracking
I’ll be showing you 3 alpha tools and step by step
guides to use them to find smart traders easily.
You need to follow the smart money to become the
smart money.
💎My full 8-step guide at the end
DexScreener
DexScreener is one of my favorite tools for whale
tracking—it is comprehensive and easy to use, even
for beginners. Here’s a step-by-step guide on how to
find and track smart money using DexScreener.
Go to:
https://dexscreener.com/
On the main page, you’ll find the top trending
token in the past 24 hours. Select a currently
trending token, like MEW on the Solana
blockchain (our example) and click on it.
Go to the "Top Traders" section on
DexScreener for that token
Identify wallets that have turned a relatively
small initial investment into millions in profits;
these are potential "smart money" or insider
wallets to follow.
Pick a wallet and analyze their transaction
history to see the buys and profitable sells that
led to their large gains.
(6A8KzAD6AgJChCzAhbCPakgNvhqdYysCf4f1
5n6h8G4C)
However, this is only one trade, which could have
been luck. To identify genuine smart money, we need
more than DexScreener.
Cielo Finance
This tool maps out the entire on-chain history of a
wallet in user-friendly visualizations. This includes:
- Detailed profit/loss data on every token traded
-The wallet's biggest wins and losses
-Related wallets with shared transaction history
-Granular activity like token inflows and outflows
To use:
Go to: https://app.cielo.finance/feed and paste
the whale’s wallet address (we’ll use the MEW
smart money identified earlier).
Here we can see the following columns: Activity,
Token PnL, NFT PnL, and Related Wallets. All of
these are important when tracking a whale, but I
specifically want us to focus on Activity and Related
Wallets.
Activity
The Activity section lets you examine the tokens that
a wallet has been receiving. This is useful because
meme coin creators often send batches of their new
tokens into known smart money/whale wallets first.
They do this to signal legitimacy and drive initial
buying activity from traders who watch and copy
those influential wallets. Seeing early token transfers
into a whale wallet you’re tracking can help you
catch the next explosive altcoin before it gains
traction with the wider market.
Related Wallets
This section shows you other wallets that have
interacted with the smart money. For example, when
we look at our wallet, we notice one related wallet
with a $41 million inflow, one $2 million outflow,
$1.8 million, and more $1 million outflows. Millions
in outflows usually suggest potential insider
involvement or a broader smart money group. Track
these related wallets as well to see their holdings,
and assess whether they are receiving any new
tokens.
Solscan
Solscan, the Solana blockchain explorer, is another
useful tool for discovering and tracking crypto
wallets, tokens, and on-chain data. It provides access
to every on-chain transaction and data point on the
Solana blockchain, including wallet activity from
whales and insiders.
Particularly useful for:
-Wallet tracking
-Researching new coins
-Finding smart contracts
-Tracking activity on DEXs
Example: Let us track the activity on Raydium, the
most popular Solana DEX for meme coins.
Go to: http://solscan.io/amm/raydium
Here, you can view details on specific meme tokens.
For instance, by clicking on BODEN, you can track
all its transactions, holders, token distribution,
trading volume, etc.
One metric to pay close attention to is the
token's distribution, which you can find under
“Analysis”. The rule of thumb is to never invest
in a token in which the top ten holders own
more than half of the supply. A small group of
holders controlling a large portion of the supply
can exert significant market influence, resulting
in market manipulation and price volatility. In
BODEN, the top ten holders only account for
12.63% of the token supply, so it's safe to
proceed.
Let us move on to the "Holders" section, where
we will find the largest holders and whales. One
of the largest wallets, zkxbt.sol holds 1.76% of
the total supply, worth $5.5 million—likely an
insider or whale.
Click on the account to view their holdings.
Analyzing zkxbt.sol’s holdings, we discover he
has been accumulating a new token called
MIMANY.
Click on it to open its Solscan page.
Go to “Analysis” and verify that the top 10
wallets hold less than 50% of the total supply
(28%)
Seeing the distribution looks healthy, we copy
the token contract address to DexScreener to
analyze the chart and liquidity.
You can also decide to analyze one of the top
holders. Simply go to "Holders" and select one
of the big wallets (we chose the largest holder
with 5%).
Paste their wallet to Cielo Finance. Our analysis
revealed one related wallet with outflows of
$58k, which is significantly smaller than the
other wallet that had millions. Connected
wallets with millions of outflows indicate that
the wallet is a well-capitalized trader or an
insider. And, as previously stated, these related
wallets are also worth analyzing.
Summary
Here's a summarized process on how to track smart
money (in an easier-to-integrate manner)
1. Start by identifying tokens with a balanced
token distribution
2. Analyze the largest holders and earliest buyers
of the token to find whales and potential
insiders
3. Use a blockchain explorer like Solscan (or
Etherscan) to dive deep into these big holders'
wallets to see their other holdings.
4. Paste their wallet addresses into CieloFinance
to analyze their full trading history, related
wallets, tokens received from new projects, and
more.
5. Monitor the tokens and assets these smart
money wallets receive from new projects, as
they are often seeded early as marketing.
6. If a network of large, profitable wallets all start
accumulating the same small-cap token, it
could signal an early opportunity.
7. Analyze the token’s fundamentals, like liquidity,
trading volume, and centralization risks, before
buying.
8. If it fits your strategy and risk-profile, then
proceed to buy.
Identifying a 1000x token requires going above and
beyond, but the rewards are worthwhile. If you are
content with 5x-10x rewards, waiting until a token is
listed on exchanges is the best strategy for you. But
if you are hungry for success and want to end the
bull run as a millionaire, you must go the extra mile
—and that extra mile is devoting your time to
tracking smart money.
That’s all for today, thank you for joining us today.
Until next time, stay informed and stay curious.
DamiDefi.
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