Author | Justin
Editor | Xiao C
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Considering the large number of cryptocurrencies, their typical extreme volatility, and the incredible number of variables to consider, cryptocurrency trading can be considered one of the most challenging pastimes.
Nevertheless, this does not stop over 30 million traders worldwide from attempting to conquer the market and turn trading into a profitable endeavor – whether as a hobby or a profession.
In order to maximize the chances of making profitable trading decisions, traders often utilize various indicators, strategies, and tools to identify opportunities and capitalize on them.
However, more and more people are now choosing to follow so-called “smart addresses” and delegate part or all of the decision-making process to experts.
In the world of cryptocurrencies, “smart addresses” typically refer to investors who are experienced, knowledgeable, and have a deep understanding of the market and underlying technology. These investors often have access to more information than ordinary retail investors and can employ complex strategies to maximize returns and minimize risks. They may also have a long-term investment perspective, focusing on projects with strong fundamentals and long-term growth potential.
The transparency and immutability of blockchain mean that every transaction is traceable. This can be seen as an advantage as it provides a certain level of accountability and security, but it can also be seen as a compromise on privacy. This also gives ordinary investors the opportunity to replicate the transactions of smart addresses and increase their chances of benefiting. Can ordinary people lie down and make money on the blockchain by following smart addresses?
Here are several applications that visualize smart address data:
1. Nansen: Tracking tagged smart address activity
https://www.nansen.ai/
Nansen is one of the blockchain analytics platforms that provides a simple way to research popular projects, new trends, and important on-chain activities.
The platform offers various free-to-use tools that help highlight important activities and data while allowing traders to delve deeper into individual projects, smart contracts, and wallets.
But its most relevant feature is called “Smart Money,” which allows you to track the activities of a large number of tagged wallets on the chain.
The Smart Money tracker provides information on three main types of on-chain activities:
DEX Trading: Tracks the most popular DEX markets in smart addresses
Transactions: Tracks recent transactions in smart addresses and the contracts they interact with
Token Holdings: Explore the token holdings and profitability rankings of Smart Addresses
Nansen’s Smart Money Tracker allows filtering of smart addresses, including specific types such as funds, smart DEX traders, airdrop professionals, smart NFT traders, etc. This optimizes the search to include transaction types that you are more interested in replicating.
Nansen’s Smart Money Tracker is currently only available to paid users and is quite expensive. However, Nansen offers a 7-day trial for $9.
2. Dune Analytics + DeBank: Finding & Identifying 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 that can be used by others.
The platform provides a large number of community-created dashboards that can be used as part of trading decisions. These websites can amplify transaction history and display it prominently.
First is the defimochi’s Token God Mode dashboard. This tool allows you to find a wealth of data about specific tokens you are interested in – helping you find smart addresses that may be trading those tokens.
By entering the token address, selecting a tracking time range (e.g. the past 30 days), and choosing the relevant chain, the dashboard will pull up a list of the top 100 transactions based on estimated profits (and other data). You can scan this list and manually filter out MEV bots to find the true smart addresses, i.e. those traders who trade tokens for maximum profit.
Then, you can copy their wallet addresses and paste them into DeBank, where you can see their current token holdings and recent transactions, allowing you to gather insights into their trading and investment strategies.
Alternatively, you can use adamzjw’s GMX trader leaderboard dashboard to discover smart addresses based on profitability or profit/loss ratio on GMX. You can then input their addresses into DeBank or other portfolio trackers to further analyze their on-chain behavior.
3. Arkham: Finding the Most Profitable Traders
https://www.arkhamintelligence.com/
Cryptocurrency data analytics platform Arkham (ARKM) is the 32nd Launchpad project launched on Binance.
While this platform does not automatically provide smart wallets like the other options in this list, the information it provides can be used to find smart wallets through some investigation if you already have a target in mind.
By cleverly using its transaction filters, you can easily find a list of active smart addresses and further refine the list to identify the current leading traders.
For example, by filtering only for accounts with a minimum value of $50,000 and only trading by funds within the last hour, you can see a list of large transactions recently conducted by smart addresses.
Then, you can browse this list and search for popular new or established cryptocurrencies in smart addresses, or identify particularly prolific wallets that may require further investigation.
Once you have identified a potentially interesting entity, you can simply click on its tag or wallet address to extract a large amount of additional data, including its recent profit and loss charts.
By scanning multiple entities and comparing their recent profitability, you may be able to find suitable smart addresses to replicate. From here, you can view their current on-chain holdings to examine their portfolios or scan their recent transactions to analyze their trading strategies.
4. Uniearn: Automatic Copy Trading of Smart Addresses
https://uniearn.info/
Uniearn is a platform that focuses on on-chain automatic copy trading (supporting NFTs, tokens, DeFi, DEX, etc.) and relies on data recommendations and analysis. Uniearn has compiled a batch of smart addresses and conducted detailed visual analysis for each smart address, directly generating position records based on online data, and generating various data (sharpe ratio, return, average leverage, etc.) targeting the trading performance of that address.
The main function of Uniearn is to automatically set up copy trading for smart addresses. The copy trading program can automatically set the transaction type. Currently, it is still in the testing phase and only supports perpetual contracts on GMX.io on Arbitrum. It will also support spot trading, minting and trading NFTs in the future. You can also set maximum slippage, order quantity, gas fee limit, leverage, take profit, and stop loss.
Simply select and copy the selected smart address, and set the trading content to automatically copy the trades. It is the most convenient copy trading program for smart addresses. The current membership fees and transaction fees have not been disclosed.
5. Conclusion: DYOR! (Do Your Own Research)
This article introduces methods and tools for tracking smart addresses and copy trading. It is important to note that relying solely on a single trading strategy and making all decisions based on smart addresses carries significant risks in the blockchain field.
Understanding different trading methods and staying informed about the latest trends and market conditions is crucial for maximizing profits and minimizing risks. By diversifying trading strategies and maintaining an open mindset towards new ideas, we can adapt to the ever-changing blockchain landscape and achieve success in this exciting and dynamic industry.
DYOR: DYOR stands for “Do Your Own Research,” meaning that it is necessary to personally conduct research before making any investments or trades and take responsibility for your own actions.
Disclaimer: This article does not constitute any investment or financial advice.
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