Author: Justin
Editor: Xiao C
Original by Techub News (ID: TechubNews)
Cryptocurrency trading can be considered one of the most challenging pastimes, given the sheer number of cryptocurrencies, their typically extreme volatility, and the mind-boggling number of variables to consider.
Still, that doesn’t stop more than 30 million traders around the world from trying to beat the market and turn trading into a profitable endeavor – either as a hobby or a profession.
To maximize their chances of making profitable trading decisions, traders often utilize a variety of indicators, strategies, and tools to spot opportunities and take advantage of them.
However, more and more people are now choosing to follow so-called “smart addresses” and hand over some or all of the decision-making process to experts.
In the world of cryptocurrency, "smart addresses" generally refer to investors who are experienced, knowledgeable, and have a deep understanding of the market and underlying technology. These investors usually have access to more information than the average retail investor and can use sophisticated strategies to maximize returns and minimize risk. They may also have a long-term investment horizon and focus on projects with strong fundamentals and long-term growth potential.
The transparency and immutability of blockchain means that every transaction is traceable. This can be seen as an advantage because it provides a certain degree of accountability and security, but it can also be seen as a compromise of privacy to the above benefits. This also gives ordinary investors the opportunity to copy the transactions of smart addresses and benefit with a greater probability. Can ordinary people just follow smart addresses and make money on the blockchain?
Here are a few apps that visualize smart address data:
1. Nansen: Tracking and tagging smart address activities
https://www.nansen.ai/
Nansen is one of the blockchain analytics platforms that provides an easy way to research popular projects, new trends, and significant on-chain activity.
The platform offers a variety of free-to-use tools that help highlight important activity and data while allowing traders to delve deeper into individual projects, smart contracts, and wallets.
But its most relevant feature is named “Smart money”, which allows you to track what a large number of tokenized wallets are doing on-chain.
The Smart Money tracker provides three main types of information about its on-chain activity:
DEX Trading: Tracking the Most Popular DEX Markets by Smart Addresses
Transactions: Track recent smart address transactions and the contracts they interacted with
Token Holdings: Explore smart addresses’ token holdings and their profitability rankings
Nansen’s Smart Funds Tracker allows filtering of smart addresses to include only specific types, such as funds, smart DEX traders, airdrop professionals, smart NFT traders, etc. This can refine the search to include the types of transactions you are more interested in copying.
Nansen’s Smart Money tracker is currently only available to paid subscribers, and it’s pretty expensive. However, Nansen offers a 7-day trial for $9.
2.Dune Analytics + DeBank: Find & Identify Smart Addresses
https://dune.com/browse/dashboards
https://debank.com/
Dune Analytics is a blockchain analytics platform that allows anyone to create their own dashboards and make them available to others.
The platform offers a number of community-created dashboards that can be used as part of your trading decisions. Such websites can highlight your trading history in a zoomed-in manner.
First up is defimochi’s Token God Mode dashboard. This tool allows you to find a ton of data about a specific coin you’re interested in — helping you find smart addresses that might be trading that coin.
By entering a token address, selecting a tracking timeframe (e.g. last 30 days), and selecting the relevant chain, the dashboard will pull up a list of the top 100 trades by estimated profit (among other data). This list can be scanned and manually filtered for MEV bots to find the truly smart addresses, i.e. those that are trading tokens with the greatest profits.
You can then copy their wallet address and paste it into DeBank, where you can learn about their current token holdings and recent transactions, potentially giving you insight into their trading and investment strategies.
Alternatively, use adamzjw’s GMX Trader Leaderboard dashboard to discover smart addresses by profitability or win/loss ratio on GMX. Their addresses can then be entered into DeBank or other portfolio trackers to further analyze their on-chain behavior.
3. Arkham: Finding the most profitable traders
https://www.arkhamintelligence.com/
Arkham (ARKM), a crypto data analytics platform, is the 32nd Launchpad project just launched on Binance.
The platform doesn’t automatically offer a Smart Wallet like some of the other options on this list, but the information it provides can be used to find a Smart Wallet with a little research if you already have a goal in mind.
By cleverly using its trading filters, you can easily find a list of active smart addresses and then further refine that list to identify the current leading traders.
For example, by filtering only for accounts with a minimum value of $50,000 in the last hour, and only for transactions by funds, you can see a list of recent large transactions by smart addresses.
You can then browse this list to find popular new or established cryptocurrencies among smart addresses, or to identify particularly prolific wallets that may warrant further investigation.
Once you’ve identified an entity of potential interest, you can simply click on its tag or wallet address to pull up a wealth of additional data — including a chart of its recent profit and loss.
By scanning multiple entities and comparing them based on recent profitability, you may be able to find suitable smart addresses to copy. From here, you can view their current on-chain holdings to check their portfolio or scan their recent transactions to analyze their trading strategy.
4. Uniearn: Automatic order tracking smart address
https://uniearn.info/
Uniearn relies on data recommendation and analysis, and is a platform that focuses on automatic copy trading on the chain (supporting NFT, Token, DeFi, DEX, etc.). Uniearn has collected a number of smart addresses and made a detailed visual analysis of each smart address, using online data to directly generate position head inventory records, and generate various data on the transaction performance of the address (sharpe ratio, return, average leverage, etc.)
Uniearn’s main function is to automatically set up smart addresses for copy trading. The copy trading program can automatically set the transaction type. It is still in the testing phase and only supports the perpetual contract of GMX.io on Arbitrum. It will also support spot trading, mint&trade NFT in the future. You can also set the maximum slippage, order volume, gasfee limit, leverage, and stop-profit and stop-loss.
Just select copy to select smart address and set the transaction content to automatically copy orders. It is the most convenient smart address copy program. The current membership fees and handling fees have not been disclosed.
5. Summary: DYOR!
This article introduces the method of tracking smart addresses and copy trading tools. It should be noted that relying on a single trading strategy in the blockchain field and relying on smart addresses to make all decisions is extremely risky.
It is essential to understand different trading methods and stay up to date with the latest trends and market conditions to maximize profits and minimize risks. By diversifying trading strategies and staying open to new ideas, we can adapt to the ever-changing blockchain landscape and succeed in this exciting and dynamic industry.
DYOR: DYOR is the acronym for "Do Your Own Research", which means that you need to do your own research and be responsible for yourself before making any investment or transaction.
Disclaimer: This article does not constitute any investment or financial advice.