1. What is Smart Money

 

Smart money refers to professional investment institutions or individual investors in the cryptocurrency market with outstanding research capabilities and information advantages. They have rich trading experience and excellent historical performance, generally with relatively large funds, and also have a certain impact on market trends and coin prices.

 

2. Why Track Smart Money

 

1. Due to the high degree of uncertainty and information asymmetry in the market, ordinary investors find it difficult to extract useful information from massive data and information, and it is even more difficult to find alpha among hundreds of projects. However, a very small number of whales or smart money can obtain thousands of times of returns by investing in the primary market early or manipulating coin prices on exchanges.

2. For ordinary investors, tracking the movements of smart money and whales can help identify market trends earlier, discover early investment opportunities, and obtain greater returns by leveraging a certain multiple of leverage.

 

3. How to Track Smart Money

 

1. Due to the high transparency of the blockchain, users can view every transaction in the block at any time. By filtering the data, it is possible to identify some smart money addresses through analyzing trading behavior and calculating historical returns.

2. In AICoin's Web3 module, a user-friendly tool for tracking smart money has been created by analyzing massive blockchain and social media data. By simply searching for a cryptocurrency, you can find a list of smart money addresses with investment returns of over a thousand times. Moreover, you can click on the addresses to backtest every buy and sell point of smart money.

 

Here, AICoin mainly introduces the important steps to capture smart money.

``````html ``````html

Function	Category	Introduction
On-chain Opportunities	Opportunity	Introduction to on-chain opportunities
Opportunity Dashboard	Integrates the views, discussions, and other information posted by crypto KOLs on Twitter, and then combines it with on-chain data to present potential coins that may rise in a structured manner.
Smart Money	Data Tracking	Smart Money	Tracking and analyzing trading activities on the blockchain, a batch of high-yield smart money addresses has been filtered.

 

 

3.1 On-Chain Opportunities

1. As the platform where FOMO sentiment spreads the fastest in the market, discussions on Twitter often lead to a large amount of buying behavior for certain coins, causing a significant price increase.

 

2.```The on-chain opportunity module of AICoin provides three main pieces of information for tracking potential coins: - Mentioned by KOLs and the probability of price increase after being mentioned. - Attention level of the coin: tracking the number of people paying attention to the coin. - Smart money holdings: the number of smart money addresses holding the token. Importantly, you can click on the specific time of KOL mention to backtest the price trend after the mention on the candlestick chart and follow the dynamic of KOLs with a higher probability of price increase. [Image 1: Chain Tracking Guide: How to Track Smart Money Using the Web3 Module](https://static.aicoinstorge.com/article/20231110/169958695560547.png) [Image 2: Chain Tracking Guide: How to Track Smart Money Using the Web3 Module](https://static.aicoinstorge.com/article/20231110/169958695515022.png) [Image 3: Chain Tracking Guide: How to Track Smart Money Using the Web3 Module](https://static.aicoinstorge.com/article/20231110/169958697662421.png)2. Smart Money This module contains the trading data of whales and smart money. Here, you can easily find the smart money addresses corresponding to each token, as well as the average holding price and buying/selling points for that address. At the same time, you can also track the on-chain transfer behavior of whales to exchanges. For users of centralized exchanges, the whale indicator is a valuable tool for reference in contract trading. 3.2.1 Token Overview In the holding profit ranking, you can see the smart money address with the highest profit for each token. By checking the holding information of that address, you can configure the same position ratio and follow the smart money to make synchronized buying and selling operations. [Image 4: Chain Tracking Guide: How to Track Smart Money Using the Web3 Module](https://static.aicoinstorge.com/article/20231110/169958697538066.png) [Image 5: Chain Tracking Guide: How to Track Smart Money Using the Web3 Module](https://static.aicoinstorge.com/article/20231110/169958705993635.png)1. Smart Money is Buying and Selling In the "Smart Money is Buying and Selling" section, you can view real-time trading activities of whales and smart money on the chain. If a token with a recent high increase in price shows a large amount of selling activity on the chain, you need to be cautious of the risk of price decline. [Image 6: Chain Tracking Guide: How to Track Smart Money Using the Web3 Module](https://static.aicoinstorge.com/article/20231110/169958706082049.png) [Image 7: Chain Tracking Guide: How to Track Smart Money Using the Web3 Module](https://static.aicoinstorge.com/article/20231110/169958706183418.png) 3.2.2 Whale Transfers In the whale transfer list, you can view real-time data of whales transferring certain tokens into exchanges within 24 hours. You can also use the "Whale Transfers" indicator to track possible price trends in advance. - Usually: Large transfer in + high trading volume: If whales transfer a large amount of tokens accompanied by increased trading volume, this may indicate that they are preparing to sell. This could lead to a price decline. [Image 8: Chain Tracking Guide: How to Track Smart Money Using the Web3 Module](https://static.aicoinstorge.com/article/20231110/169958708375668)

 

4. How to Set Up On-Chain Alerts

1. After selecting the tokens you want to monitor, you can set on-chain whale alerts for these tokens;

2. AICoin supports providing address labels for whales, VCs, institutions, and centralized exchanges;

3. Simply select the currency and set the transaction amount to receive real-time notifications of large transfers of the currency into exchanges, capturing potential profit from currency price fluctuations in advance;

 

5. Real Case Studies

 

5.1 MEME, PAAL, MINA