When it comes to investing in cryptocurrencies, there are several kinds of analysis one needs to be conversant with in order to be successful and profitable. People who trade cryptos on different exchanges are more conversant with fundamental analysis and technical analysis.
But today I want to open your eyes to another important kind of analysis called the ‘On-chain Metrics Analysis. For the purpose of this write-up, I won’t go into details about what on-chain metrics analysis means (you can Google it up and read about it), but rather would be focusing more on how you can use it to make money by simply tracking crypto whales wallets to know the coins/ tokens they’re accumulating, when they’re buying such a token, and when they’re selling off.
Blockchain as a publicly accessible ledger that records all transactions with a given cryptocurrency network like Etherium, Binance Smart Chain, Polygon, etc can be studied through the act called On-chain Metrics Analysis – which happens to be the art of interpreting these movements to gain insights into the network and its participants.
How to Know a Whale for a Particular Coin/ Token.
A crypto whale or simply put a whale is an individual trader or investor who holds so much quantity of a given cryptocurrency, in that their action(s) affect such a cryptocurrency market. What this means is that a whale is someone or an organization somewhere that can single-handedly influence the price movement of a given coin or token. When it comes to analysis, On-chain Metrics Analysis is one kind of analysis that can easily help you discover a whale of any given cryptocurrency. To discover the whales of let’s say Decentraland token $MANA , all you need do is:
1. Visit $Mana’s page on Coinmarketcap or Coingecko.
2. When it loads up, scroll down to the explorer menu and click on the first option ‘etherscan’.
3. It will take you to $Mana’s page on etherscan. Scroll down and click on the ‘Holders’ menu to open the list of holders. This list is well arranged in order of quantities held by each wallet but note that the wallets with the highest quantity held are not always the whales as most of the wallets are liquidity wallets. The liquidity wallets are always labelled with the liquidity tag or names like the ones below. But in the case of this particular coin($Mana), the first wallet in the screenshot below is one of the whales.
In a way to practice identifying more whales for other coins/takens follow the same steps above.
How to Make Money Off Following a Whale’s Wallet Activity.
Now that you know how to identify a whale for a particular token, the next course of action would be how to make money with this knowledge. To begin, once you’ve identified a given whale for examples let say a whale of $PEPE ;
1. Visit debank dot com and connect your wallet or create an account.
2. Copy whale’s wallet address from Etherscan holders' section and paste on Debank’s search menu and open the wallet’s profile.
3. Once the profile opens up, click on the ‘Transaction’ menu of the profile and scroll through the see the wallet’s recent activities and if need be, follow the wallet to be notified of further transactions or activities by the wallet. Now here is how to make good money from following the whale’s activities. On the transaction section of the whale’s wallet, whenever he buys a particular coin or token, follow him and buy some of the tokens and keep monitoring the wallet to know when he will start selling off the tokens in order to follow along.
I can tell you for a fact that you will be making at least 5x profit on your investments by simply following the whale’s wallet activities. To be on a profitable side, make sure that you’re following a whale whose transaction section is active, that’s to say a whale that makes at least two or more transactions daily. A good example of such a whale is one whom I have provided his wallet address to you all for free, smiles.
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