So, how do you track whales? The steps are often similar across platforms. First, you’ll need to identify a whale to track. Some platforms do this automatically, although sometimes with less useful information. For example, you might get a list of whale activities, big wallets and their large transactions. However, you’ll also want the ability to drill down into their other holdings to find potential opportunities.

Let’s look at the steps to track a whale using Arkham Intelligence. Visit Arkham Intelligence and open the app by tapping the Launch Platform button.

1) Focus on Transactions for a Specific Cryptocurrency

Let’s say we want to target ETH whales to start. ETH whales likely hold several other tokens and likely some NFTs as well. In this example, we’re interested in the other tokens to see if there are other opportunities.

Use the search bar to find ETH transactions. You can also use this search to find other tokens or wallet addresses.

2) Filter by Transaction Amount
The initial list shows all recent transactions. We need large whale-worthy transactions.
Set the VALUE to 5 ETH or a similar high number to eliminate smaller transactions.

3) Identify a Crypto Whale

Examine the filtered list to find a likely whale. In the example below, we found a wallet that withdrew 280 ETH from Aave, a leading decentralized lending protocol.

Open the link for the receiving wallet in a new tab.

In the new tab, we can see our crypto whale has more than $9 million in crypto in this wallet.

Further down, Arkham also lists recent transactions, with additional tabs to filter by swaps, inflows, and outflows. The last of these options may point to other wallets owned by the same whale. Swaps may uncover some leads on hot tokens. This wallet has been buying WTAO.

Arkham also offers a chart for WTAO, as well as a transaction list that you can filter for large transactions to identify additional whales. You can also “visualize” the token to find patterns and clusters, which may indicate multiple wallets owned by the same entity.

4) Set an Alert

You may want to name the wallet. If so, tap on Edit Entity. Next, let’s set an alert.
Choose Create Alert near the top of the page. Because we started from a wallet overview page, the alert automatically defaults to just the target wallet.

Set your alert details. For example, you might want to limit your alert to large transactions or a specific token. When the criteria are met, you’ll get an alert. Arkham supports email, Slack, and Telegram notifications.

You’ve set your first alert. You can also add other alerts for additional wallets that look interesting. Have fun, but be careful. In a later section, we’ll discuss why you may not want to follow every whale you find.

Advantages of Using Crypto Whale Trackers

A crypto whale tracker simplifies the process of tracking whales. Blockchain explorers contain all the same information but leave the detective work up to the user. For example, every Ethereum transaction is detailed on etherscan.io. Similarly, blockchain.com chronicles all the transactions on the Bitcoin blockchain. However, finding whale transactions using these tools can be challenging.

Crypto whale trackers analyze the data and create results you can filter according to your needs. Make data-based decisions rather than guessing. Get instant alerts based on your settings. With frequent use, you’ll also see patterns you can use in your future trades. Whale trackers offer a way to learn and hone your instincts in addition to providing actionable insights.

Data-Backed Decision-Making

According to one oft-cited and sobering study, 97% of traders lose money. The study measured performance over 300 days of trading. This high failure rate number suggests a series of ill-chosen trades, perhaps worsened by unfortunate market timing. In simple terms, traders often guess rather than make trading decisions based on hard data.

Crypto whale tracker apps and in-depth market analysis tools remove the guesswork from decision-making. Instead, you can see where the money flow is moving and identify shifts in sentiment. Whale-watching can even help you find the next big thing much earlier, securing an entry before the broad market comes in droves.

Real-Time Alerts
The crypto market can change on a dime. Time is money in many trades, and real-time alerts can help ensure timely entries and exits that maximize gains and reduce risk. Nearly every whale watcher app provides whale alerts for crypto markets.

Learning Opportunities
You don’t have to trade to learn from whale wallets. Consider setting up a spreadsheet to track “paper trades.” Use the whale wallets you identify to enter hypothetical trades on the spreadsheet and check your performance over time. This process lets you learn the easy way without losing money. Over time, you’ll discover which information is helpful and how to find it quickly.

Drawbacks of Using Crypto Whale Trackers
We’ve all seen a dog chase a squirrel. The squirrel is usually a bit more agile and a few steps ahead, but what happens when the dog sees a second squirrel moving in another direction? Chances are good that all the squirrels will get away. Crypto whale trackers can provide too much information, not unlike having more than one squirrel to chase.

In addition to information overload, the data can sometimes be difficult to interpret, possibly leading to costly trading mistakes. In the worst-case scenario, whales may be setting a trap, knowing the transactions of larger wallets garner plenty of attention.
Potential for Misleading Information and Traps

Successful scammers often have large crypto wallets. We once tracked $10 and $20 contributions to marketing wallets for small meme coin CTOs (community takeovers) to a whale wallet with over $170 million in assets that was receiving ETH all day long. This scam, and likely several others, was happening at an industrial scale. Should you follow this whale wallet?

Probably not.

Scammers and groups that run honeypot scams also often have large wallets. A honeypot token uses code to whitelist specific wallet addresses and automatically blacklist others. Blacklisted wallets may not be able to sell the token. Following a whitelisted whale wallet into a honeypot means they can buy and sell while you can only buy. In the end, you’ll have worthless tokens after the whitelisted wallets drain all the value from the token (or the liquidity pool is pulled).

In the example below, currently trending at number one on Dexscreener, Honeypot.is flagged the token as a honeypot token. Buyers may not be able to sell. However, the whitelisted wallets or the wallets they ultimately send funds to are likely whale wallets.

Whales may also own additional wallets, masking how much of the supply they own. For example, if you follow a whale into a trade and they buy 0.5% of the supply, that may seem like a minimal risk if they sell. However, it’s possible that they have more than one wallet and hold a much more substantial position.

Data Interpretation Difficulty

Spend some time learning the platform you choose. Many trackers offer granular detail with no explanation of what it all means. Experience will help, as will examining the profit an loss for target wallets. Is this wallet owner a trading genius, or do they just have a lot of money? It’s an important question to answer before you choose to follow their moves.

Movements from Wallet A to Wallet B might be meaningless. Learn how to filter the results to be more relevant to the way you trade. If needed, make some paper trades first to learn which data is useful before you commit real money to following whales.

Information Overload

Remember the dog chasing squirrels? That can easily happen with crypto whale trackers. We found ourselves with 20+ open tabs and pages of notes. You can’t catch all the squirrels. Find a a few to focus on first and examine their profit and loss to narrow the list.

When Should You Use Crypto Whale Alerts?

Although crypto whale trackers come with some usability challenges, they also bring opportunities. You can use whale trackers to find new tokens before they reach the masses and discover new protocols before they reach wider adoption. Let’s look at some situations where whale alerts and trackers can be useful.

• Find New Tokens. Making money in crypto is often a matter of building a position early. You can use a whale tracker to identify potential opportunities in tokens that haven’t yet become popular but in which whales are taking positions.

• Discover New Protocols. Many people who invested in Curve in 2020 now enjoy a stable yield on a token that has increased exponentially in value. Curve now boasts more than $2.4 billion in total locked value (TVL). Whale trackers can reveal similar opportunities.

• Plan Exchange Trades. At the beginning of every big selloff, whale wallets move funds to exchanges. They may buy back later at a lower cost. When your whale alerts start pinging, it may be wise to consider a trade that protects your investment. Whale withdrawing crypto from exchanges may signal an upward turn in the market.

• Follow Whale Trades. Once you identify wallets that have a profitable trading history, you can follow their moves. Be prepared for an occasional loss. However, you have prior data that suggests the odds are in your favor.

• Backtesting Analysis. Many whale trackers provide a profit and loss analysis for a given period. You can look back and see which trades worked and which didn’t, gleaning clues you can use in your own strategies.

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