Smart Money And Tracking Them To Make Less Risky Investments

• Smart money is made by professional investors with years of experience and in-depth market knowledge.
• People tend to follow their moves to analyze market direction and make future decisions. 

The cryptocurrency market is considered highly volatile and risky owing to the multiple factors involved. Also, there are close to a thousand crypto projects to choose from, with each promoting them with unique features and a promising future. Thus, naive traders are often met with confusion and disappointment if they hurry into investing. 

Several users, hence, found a canny solution to avoid losses and understand the market. Smart money refers to investors who have long been in the market, have in-depth knowledge, utilize advanced and professional analytics tools and whose movements influence the market. 

These smart traders owe their success to having more information and market insights than regular traders. They have more resources in their hands before making a decision and thus, often make a profitable one. The best example can be given during the 2008 economic crisis, when smart money like Carl Icahn, George Soros, and others, sold their stock holdings and moved to gold instead and predicted a global financial crisis due to the mortgage crisis. 

The canny solution is to follow the moves of this smart money and make a profit or avoid risks based on their market predictions. Buy when they see the potential, and sell, when they see the risk. There are several platforms available at present that help users track the movement of smart money. 

Dune Analytics and DeBank

The Dune Analytics platform is already popular among users as a community-driven blockchain analytics platform. Here, people can create several dashboards that can be publicly viewed and utilized. There are several dashboards, but two turn out to be promising for tracking smart money. 

The Token God Mode dashboard helps users glance at information related to a particular token and know about any large recent trades. First, enter the token address and select the required timeframe. Next, after selecting the chain, the dashboard displays the top 100 trades along with their profits. By skimming through them, users can take a particular address, paste it into DeBank (portfolio tracker), and analyze the account and their recent trades. This can give insights into the current market for the token and future investment strategies. 

Another popular dashboard is the GMX Trader Leader Board, where the top traders are listed based on their profit/loss ratio. 

Nansen

Another popular blockchain analysis platform reigns mainly in the domain of emerging trends, hot projects, and on-chain activity, The platform offers several analytic tools and features, including the one we are concerned with at present, the smart-money feature. The feature excels in providing three major types of information, namely transactions, token holdings, and DEX trades. These help users analyze the smart money’s recent trades, and the particular smart contract they are highly interacting with and list them based on their profits. 

Additionally, it comes with a filter option through which users can narrow down their research to specific funds, smart NFT traders, smart DEX traders, or airdrop professionals. However, seeing the huge insight it provides, the smart money tool is only available on a premium basis and can be glanced at with a 7-day free trial. 

Conclusion

Along with these, there are several other platforms, such as CryptoRank and Arkham, available to track smart money. Users can also use social media to analyze tweets and comments, and in general, their social media activity, to understand their investment strategy. Constant research and learning can help users better learn smart money tools and make future informed decisions, however, it is also advised not to copy anyone on a 1:1 basis and to always think things through before investing.