Track crypto whales and generate profits. here’s how

Now apply the same concept to the crypto world and you get a picture of what it might mean to follow in the wake of a crypto “whale”.

Used to describe investors who hold a disproportionate stake in a particular cryptocurrency compared to retail investors, “crypto whales” can influence the price of respective crypto tokens with their buy/sell power and disrupt the markets of the cryptography with relative ease.

It is therefore important to spot these whales and follow their commercial activity, to profit from it or simply to avoid being on the losing side of a trade.

Tracking Wallet Addresses and Crypto Holdings of Crypto Whales

Over the past few years and through many bull and bear cycles, large market cap cryptocurrencies like Bitcoin (BTC) have generally reacted in the direction of major trends when crypto whales were in action.

While some crypto tokens like Dogecoin (DOGE) or SuperDoge (SUPDOG) can fluctuate wildly when the crypto whales are in action, these large investors wield considerable influence over the price by means of their trading volumes.

It is therefore important for retail crypto investors to follow the largest portfolios and keep up to date with major changes in their holdings in order to align their trading strategy accordingly.

Fortunately, there are dedicated crypto websites such as Watcher.Guru that offer crypto whale tracking services along with a host of other analysis to guide the average crypto investor.

Offering unparalleled coverage of automated cryptocurrency whale tracking, this site also allows community users to vote for their favorite tokens and provides useful information on the most active cryptocurrencies.

Similarly, leading on-chain analytics platform Whalemap offers intuitive trading charts for the crypto community to understand crypto-whale trading activity at a glance.

Monitoring these top crypto whales in terms of their holding sizes and understanding their behavior can help crypto investors gain an edge in the most volatile crypto markets.
Business Activity Monitoring with Whale Dashboards

While following large crypto portfolios, investors have a higher likelihood of spotting large trades quickly, which helps them make quick investment decisions to profit from the move.

For example, if a Bitcoin whale executes a large buy order near a critical price support level, it is a signal for retail investors to do the same and invest for a likely bounce back to higher levels. higher prices.

This requires following live trading activity and involves many tedious processes if done manually by checking changes in the order book.

One can access any major exchange like Coinbase and Binance to create a watchlist and constantly monitor for signs of large transactions.

Alternatively, crypto fans and investors can access free services from companies like Whale Alert which provide dynamic alerts and tracking services for a plethora of cryptocurrencies. Available on Twitter as @whale_alert, followers can expect prompt updates whenever a crypto whale makes a splash in the crypto markets.

With over a million followers across social media platforms, Whale Alert uses bots to post real-time transaction updates that traders, developers, and blockchain enthusiasts can benefit from.

However, for savvy investors who want to access a live trading feed and enjoy the freedom to filter data dynamically, the CoinLobster Whale Watching Dashboard is a much better alternative.

With users able to check trading volumes above a customizable threshold, CoinLobster offers combined order book visualization by compiling exchange data and can overwhelm novice investors with the array of tools on offer.

Tracking whale trading volumes to understand underlying sentiment

While blockchain technology holds answers to a decentralized and more equitable future, cryptocurrencies are subject to market volatility and trends, just as is the case with most traditional asset classes like stocks. .

Take for example the current bear phase, where most cryptocurrencies have corrected significantly from their peaks, on-chain data analysis indicates that BTC whales are still hesitant to grab the cryptocurrency the most popular at current prices.

This indicates a cautious approach and should be read correctly so that investors do not rush to take new positions or average their holdings. On the other hand, in the event that Crypto Whale buy volumes increase along with rising token prices, this can be seen as a sign of a bullish reversal and should be exploited for short-term gains. .

Thus, tracking trading volumes can be beneficial for crypto investors not only to understand the hottest tokens being traded, but also to make quick investment decisions in the event of a trend reversal.

First article