Renowned analyst Miles Deutscher on X, known for his expertise in on-chain whale watching, has shared two battle-tested strategies that have the potential to turn a modest investment into over $1 million through early meme coin trading. Insiders in the cryptocurrency market have been capitalizing on their privileged access to information that significantly impacts token prices, such as launches, promotions, and partnerships, by strategically timing their investments.
By leveraging their networks and connections, these insiders, colloquially known as “whales,” continuously increase their wealth at the expense of retail investors. However, He suggests that retail investors can gain an edge over this asymmetrical playing field by utilizing the transparency offered by blockchain technology. Through the use of specific tools, investors can track the buying and selling activities of these influential whales. He offers two Battle-Tested Strategies practical to facilitate this process.
The First Battle-Tested Strategy involves utilizing the DEXTools application, a popular decentralized exchange analytics platform. Users are advised to navigate to the pairs section of DEXTools and identify tokens that consistently appear on the “Hot Pairs” or “Daily Gainers” lists for three to four consecutive days. This indicates significant hype surrounding those tokens. To streamline the process, investors can focus on a specific blockchain network, such as Solana or Base.
Once a selection of tokens is made, investors need to conduct due diligence on each one by examining their trade history. Specifically, they should filter for transactions exceeding $10,000 and take note of the wallets involved. By utilizing block explorers like Etherscan or Solscan, investors can identify patterns in the transaction history of these wallets, enabling them to spot “smart money” moves.
Applications such as DeBankDeFi and StepFinance can also provide valuable assistance in this regard. He emphasizes the importance of discernment when tracking whale wallets, cautioning that not all whales are equally profitable. Some may possess substantial token holdings but have a history of unprofitable investments or low returns. Therefore, a combination of on-chain analysis and critical thinking is crucial in identifying the right wallets to track.
While block explorers facilitate initial analysis, more advanced tools are necessary to filter out the most promising opportunities. The Second Battle-Tested Strategy, Arkham Intelligence comes into play. Arkham Intelligence offers a comprehensive suite of wallet and contract tracking tools designed for advanced whale watchers. With Arkham, users gain access to detailed overviews of a wallet’s token holdings, exchange usage, and transaction history.
The platform’s smart labelling system categorizes larger decentralized finance (DeFi) protocols, such as Uniswap and Pendle, and highlights potential top wallets. However, the true gems can often be found by delving deeper into the data. DeFiMinty outlines a successful strategy for identifying potential whale wallets through Arkham.
Both DEXTools and Arkham Intelligence have their strengths and limitations, they are highly complementary. Investors can use these tools in tandem to construct a holistic whale tracking strategy, with DEXTools aiding in identifying tokens with momentum and associated whale wallets, and Arkham providing snapshots, rich analytics, and real-time alerts.
It is important to note that not all whale wallets will yield profitable outcomes, requiring investors to engage in trial and error to identify wallets that consistently generate positive results. Once a list of winning wallets is established, investors can consider copy trading them with a small portfolio.
Mastering these on-chain tools requires time and persistence. However, the potential rewards make the effort worthwhile. By employing these battle-tested strategies and leveraging the power of blockchain transparency, retail investors can level the playing field and position themselves for substantial gains in the fast-paced world of meme coin trading.
