Why Tracking Whale Wallets is Essential for Investors in Cryptocurrency

Crypto investment is not a joke, requires careful research to participate. Whale wallets provide key information such as market dynamics, and much more. The reason to analyze whale wallets is to identify the buying and selling patterns and how prices move in the crypto world. This article is designed to provide you, with how you can explore the whale wallet and what are the key information that gives you meaningful insights.

Key Information to Track

Token Name

Whenever you are going to track the whale wallet, first identify what the specific tokens are associated with. You may find several tokens but what you are required to do is just write down each taken unique characteristics and and its behavior in the crypto market.

Token Launch Date and Time

After identifying the tokens in the whale wallets, your second task is to find out each token’s launch date. The reason to verify this information is to find the maturity of that token. It is possible that there are multiple tokens and some early-stage tokens have higher volatility. But right now just write down this information.

Purchase Details:

The whale purchase details require three steps which are the following:

1. Identify the timing of the purchases of tokens because it is essential for making key decisions. This information reveals the market conditions at that moment.
2. The quantity of tokens also indicates why Whale has such confidence in those tokens.
3. Now it’s time not how Whale pays in respect of the token or in USD. This information provides why a whale has been committed to buying this coin.

Market Cap or Price When Bought

Now you have reached the point where you are determining the valuation of the token at the time of purchase. This metric is important for assessing potential future performance.

Current Status

It is the least task to understand the current status of the token.

1. If he sold the token it means he has the bearish sentiment and the token has no future value.
2. If he is still holding the coin it means he has confidence that this coin can attract price appreciation.
3. If the whale partially sold the coins it suggests that the coin still gives better results.

The Importance of Tracking Whale Activity

1. Whales serve as potential indicators to buy or sell tokens. For example, if multiple whales are still accumulating a specific token, it means all of them have a bullish sentiment about it.
2. By analyzing whales’ wallets you find the information on when to buy and sell tokens for example if you find that a whale buys a large number of tokens it means the token has future price appreciation.
3. If whales buy undervalued tokens, it means you have the chance to capitalize on potential growth before prices rise.

Practical Example

• Token Name: APEPE
• Token Launch Date: January 1, 2024
• When Token Bought: January 15, 2024
• Amount Bought: 10,000 APEPE tokens
• Total Paid: 50 (approximately $100) at the time of purchase
• Market Cap When Bought: $1 million
• Current Status: Still holding

The above exercise demonstrates that the whale buys it shortly after its launch and continues to hold indicating the coin has the potential for future growth. This shows us that the coin has a positive attitude and considers it the major candidate to invest in.