- Smart money is the term used to refer to firms and traders with profound insights and resources in the crypto space.
- Since their analysis is valuable, tracking smart money has become a dedicated practice for market participants.
- Platforms offer tools to track and analyze smart activity like Arkham, CryptoRank, DeBank, Dune Analytics, and Nansen.
Cryptocurrency trading is quite challenging and to make profits from it, traders deploy various methods and tactics. One major rule of thumb is that everyone adheres to following the footsteps of prominent traders. In the crypto world, the popular institutes and individuals having keen insights into the market are called smart money.
Following their portfolio and investment methods has become a standard practice among crypto investors. It helps them identify potential investment opportunities and to separate gems among duds. Since there are so many tokens in the market, analyzing all of them is not possible.
Therefore, smart money comes in handy and tells about the projects one can consider. There are a whole bunch of reasons that make this practice necessary.
Reasons that Make Smart Money Worth Following
Smart money makes investment easier with some key factors.
Backed by Analysis
The portfolio of experts shows handpicked tokens. They do an in-depth analysis before buying and selling anything. So, when one follows one such entity, it can be of immense help.
Diverse Portfolio
Knowledgeable investors diversify their portfolios with a combination of established companies as well as new projects especially when it comes to picking small projects.
Ease of Trading
When you have a list of top tokens dished out on your device, the investment gets easier than ever. Smart money does that for you, it minimizes your time and effort both.
Tools To Consider For Tracking Smart Money
Nansen
Nansen provides a simple interface to find the most sought-after projects in the market. Moreover, it makes the research process very easy and tells you about the latest trends and significant events. It has a dedicated feature called “smart money” that makes the tracking of high-value stocks.
Dune Analytics + DeBank
Dune Analytics is people-powered blockchain analytics. It facilitates the managing of portfolios with individual dashboards. The users can also share them with others if needed. With community-based dashboards, the platform helps investors understand different perspectives. It has some specific indicators that make the analysis very easy.
CryptoRank
CryptoRank provides reams of data to market analysts to analyze past and current trends. The platform brings forth a number of tools and trackers that helps do in-depth study. It delivers a chain of features known as crypto funds and investors.
Arkham
This on-chain analytics platform exhibits great flexibility and modularity. It does auto-generate the list of smart money but presents plenty of data. With the use of transaction filters, it shows active smart money traders too. It has simplified trading for many market participants.
Conclusion
Smart Money makes your investment easy and seamless. It makes the investment easy and quick for every investor. Following this practice, crypto market participants are able to curtail risk and amplify profits. It emerges as a valuable practice for them and gives them better insights. With this practice, every investor will benefit in the short as well as long term.
