Track crypto whales and generate profits. This is 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 have a disproportionately large stake in a particular cryptocurrency compared to retail investors, “crypto whales” can influence the price of respective crypto tokens with their buying/selling power and disrupt the crypto markets with relative ease.

It is therefore important to spot such whales and track their trading activity, in order to profit from it or simply 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, cryptocurrencies with large market capitalizations such as Bitcoin (BTC) have typically reacted in the direction of major trends when crypto whales have been in action.

While some meme crypto tokens like Dogecoin (DOGE) or SuperDoge (SUPDOG) can swing wildly when crypto whales are in action, these big investors exert a significant influence on the price with the help of their trading volumes.

This makes it important for private crypto investors to track the largest wallets and stay abreast of major changes in their holdings to adjust their trading strategy accordingly.

Fortunately, there are dedicated crypto websites like Watcher.Guru that offer crypto whale tracking services along with a variety of other analytics to guide the average crypto investor.

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

Likewise, leading 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 the size of their holdings and understanding their behavior can help crypto investors gain an edge in the most volatile crypto markets.

Monitoring trading activity with whale dashboards

While tracking large crypto wallets, investors are more likely to spot large trades early, helping them make quick investment decisions to profit from the movement.

For example, if a Bitcoin whale executes a large buy order near a critical price support level, it is a cue for retail investors to follow suit and invest for a likely return towards higher price levels.

This necessitates tracking the live trading activity and involves many tedious processes if done manually by checking order book changes.

One can access any major exchange like Coinbase and Binance to build a watchlist and constantly watch for signs of big trades.

Alternatively, crypto fans and investors can access free services from firms such as Whale Alert that offer dynamic alerts and tracking services for a multitude of cryptocurrencies. Available on Twitter as @whale_alert, followers can expect instant updates whenever a crypto whale makes a splash in the crypto markets.

With more than a million followers across social media platforms, Whale Alert uses bots to post real-time transaction updates for traders, developers and blockchain enthusiasts to take advantage of.

For discerning investors who want to access a live trade feed and enjoy the freedom to dynamically filter data, the CoinLobster Whale Watching dashboard is a much better option.

With users able to look for transaction volumes above a customizable threshold limit, CoinLobster offers a combined order book visualization by compiling data across exchanges and can overwhelm newbies with the range of tools on offer.

Tracking whale transaction volumes to understand underlying sentiment

While blockchain technology holds the answer to a decentralized and fairer future, cryptocurrencies are subject to market volatility and trends just as is the case with most traditional asset classes such as 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 reluctant to snap up the most popular cryptocurrency at current prices.

This indicates a cautious approach and should be read properly so that investors do not rush in to take new positions or average their holdings. On the other hand, in case crypto whale buying volumes trend higher with increasing token prices, it can be taken as a sign of a bullish reversal and should be reacted to short-term gains.

Consequently, tracking transaction 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.

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