The crypto market is unpredictable, how to “catch the wave” in time and invest effectively? The secret lies in checking the wallet – an on-chain analysis method that helps you track the activities of sharks, KOLs and capture smart money flows. So what is wallet check? Let’s explore how to check the wallet to make strategic investment decisions and optimize profits!

What is wallet check?

Wallet checking involves examining and analyzing on-chain data associated with a specific cryptocurrency wallet address. This data includes asset balances, transaction history, smart contract interactions, and more. By checking wallets, you can gain valuable insights into the behavior, investment strategies, and interests of wallet owners in different projects.

Commonly “wallet checked” subjects include:

• Whales: Investors holding large amounts of digital assets, capable of influencing the market.
• KOLs (Key Opinion Leaders): Influential figures in the crypto community who often share their views and investment recommendations.
• Venture capital funds (VCs): Professional investment organizations with structured and long-term investment strategies.
• Top holders: Individuals holding a significant number of tokens in a specific project.

The benefits of wallet checking

Wallet checking offers numerous practical benefits for crypto investors, enabling them to make more informed and effective investment decisions. Here are some key advantages:

Understanding market sentiment

• By monitoring the activities of whales and KOLs, who wield significant market influence, you can identify emerging investment trends early on.
• Example: If a whale suddenly acquires a large amount of token X, it could signal a potential surge in the project’s value, attracting attention from other large investors. Conversely, if KOLs collectively sell off a token, it may indicate a potential decline in its value. This allows you to proactively adjust your investment strategies and stay ahead of the market.

Learning from the experts

• Analyzing the portfolios and transaction histories of whales, KOLs, and VCs provides valuable insights into their investment approaches, asset allocation strategies, and timing of buys and sells.
• Example: Observing how a KOL diversifies their portfolio across various asset classes (DeFi, NFTs, Metaverse, etc.) and when they enter a project (early stage, growth phase, etc.) can offer valuable knowledge and experience.

Uncovering potential investment opportunities

• Tracking smart money allows you to identify promising projects before they gain widespread recognition.
• Example: If a venture capital fund invests in a new project, it suggests strong potential for future growth. Wallet checking can help you “hunt” for these hidden gems and increase your chances of profitability.

Risk management

• Wallet checking helps you detect signs of market manipulation, panic selling, and other red flags, enabling proactive risk management and asset protection.
• Example: If a group of whales simultaneously sells off a large quantity of tokens, it could trigger a market-wide sell-off. Early detection of such signals allows you to react promptly by selling or converting assets to mitigate potential losses.

How to check whale wallets

“Swimming with the whales” is a popular investment strategy in the crypto market. To do this effectively, you need to know how to check whale wallets. Here’s a step-by-step guide:

Step 1: Utilize whale tracking bots

These bots notify you of large transactions made by whales, providing real-time insights into their actions. Some popular options include:

• Whale Alert: Available on both Telegram and Twitter (X), but the Telegram version requires a paid subscription.
• Whalestats: Provides detailed information on transactions from the top 1000 Ethereum wallets.

Step 2: Identify whale wallet addresses

Upon receiving a notification from a bot, click on the link provided to view the transaction details. This information typically includes:

• Token traded: e.g., ETH, BTC, USDT, etc.
• Transaction volume: The value of the transaction.
• Sender and receiver wallet addresses: This is the crucial information you need for wallet checking.

Step 3: Use wallet checking tools

Copy the wallet address and utilize tools like Arkham, Nansen, or blockchain explorers (Etherscan, BscScan) for analysis.

• Portfolio analysis: Examine token balances and asset allocation percentages.
• Transaction history analysis: Review buy/sell timings, transaction volumes, and projects the whale has participated in.

Illustrative example:

Suppose you receive a notification from Whale Alert about a large ETH transaction.

• Click the notification link: You’ll be redirected to a blockchain explorer (e.g., Etherscan).
• Locate the Wallet address: On the transaction details page, copy the whale’s wallet address.
• Paste the address into Arkham: You’ll gain access to the whale’s portfolio, transaction history, and other valuable data.

Important notes:

• You may not always be able to identify the actual identity of the whale.
• Combine wallet checking with other analytical methods for effective investment decisions.
• Exercise caution and avoid blindly following whales.

How to check KOL wallets

Checking KOL wallets can provide insights into their investment strategies, offering valuable reference points for your own decisions. Here’s a detailed guide:

Find KOL wallet addresses

This is the first and most crucial step. Not all KOLs publicly disclose their wallet addresses. Try these methods:

• Monitor KOLs’ social media posts: Some KOLs may share their addresses on Twitter, Telegram, Facebook, or other platforms for transparency or donation purposes.
• Use Platforms like Arkham and DeBank: These platforms allow you to search for wallet addresses linked to KOLs’ social media accounts.
• Join KOL communities: Members in Telegram or Discord groups may share information about the KOL’s wallet address.
• Check transactions related to KOLs: If KOLs participate in IDOs, IEOs, or public sales, you can examine transactions on blockchain explorers to find their addresses.

Utilize wallet checking tools

Once you have the address, similar to checking whale wallets, you can use tools for analysis:

• Blockchain explorers: Etherscan, BscScan, etc. (depending on the blockchain the KOL uses).
• On-Chain analysis platforms: Arkham, Nansen, DeBank, etc.

Analyze KOL wallets

Focus on the following information:

• Portfolio: What tokens does the KOL hold? What is their asset allocation strategy?
• Transaction History: Which tokens do they frequently trade? Do they tend to hold long-term or engage in short-term trading?
• Other On-Chain Activities: Do they participate in staking, farming, governance, or NFT investments?

Important notes when checking KOL wallets

• Exercise caution with information: Not all KOLs are investment experts. Be wary of investment advice and always conduct your own research.
• Verify wallet addresses: Ensure the address you find is accurate.
• Combine multiple information sources: Don’t solely rely on KOL wallet checks for investment decisions. Combine it with other analytical methods like fundamental and technical analysis.

Example of checking KOL wallets on Arkham

• Visit the Arkham Intelligence website.
• Enter the KOL’s Twitter username in the search bar.
• If the KOL has linked their wallet to their Twitter account, Arkham will display the address.
• Click on the address to view details of their portfolio, transaction history, etc.

How to check top holder wallets

Checking the wallets of top holders for a project can help you assess community confidence and learn from the strategies of major players. Here’s a detailed guide:

Step 1: Access a Blockchain Explorer or Arkham

• Blockchain Explorers: Each blockchain has its own explorer, such as Etherscan for Ethereum, BscScan for BNB Chain, Polygonscan for Polygon, etc.
• Arkham: This platform allows you to check wallets across various blockchains, saving time and effort.

Step 2: Search for the Token and view the holder list

• Enter the token name or contract address in the search bar on the platform.
• Once you find the token, select “Holders” or “Token Holders” to see the list of individuals holding that token.

Step 3: Analyze top holder wallets

The holder list is usually sorted by the number of tokens held, from highest to lowest.

• Exclude project and exchange wallets: These wallets often appear at the top but don’t provide much analytical value.
• Analyze individual/organization wallets: Select a few individual or organization wallets from the top holders for deeper analysis.
• Portfolio: Examine other assets held by the holder and their asset allocation.
• Transaction history: Track buying, selling, transferring activities, and the timing of their project entry.

Significance of checking top holder wallets

• Assessing confidence: If top holders hold tokens for extended periods without selling off, it’s a positive sign indicating community trust in the project.
• Referencing investment strategies: Observing top holder behavior can offer valuable insights and improve your own investment approach.
• Detecting market signals: Changes in top holder behavior (e.g., sudden buying or selling) can foreshadow upcoming market movements.

Important notes:

• Knowledge and experience: Basic understanding of the crypto market and on-chain analysis is necessary to interpret information gathered from wallet checking.
• Combine multiple methods: Don’t solely rely on checking top holder wallets for investment decisions. Combine it with other analytical methods like fundamental and technical analysis.
• Avoid FOMO: Don’t buy into a token just because you see top holders holding it. Always conduct your own research and due diligence before making any investment decisions.

Wallet checking tools

Arkham

• Pros: User-friendly interface, supports multiple blockchains, offers powerful on-chain analysis features (e.g., Intel Exchange – allows users to exchange information about wallet addresses).
• Cons: Some features require users to hold ARKM tokens.

Nansen

• Pros: Leading on-chain analysis platform, provides in-depth data and detailed reports.
• Cons: Charges users a fee.

DeBank

• Pros: Free, integrates SocialFi features, allows users to track and interact with other investors.
• Cons: Data may be incomplete for some tokens and wallets.

Tips for wallet checking

• Check private sale wallets: Analyze wallets of private sale participants to predict project potential.
• Check wallets of surrounding investors: Examine wallets that frequently interact with whale or KOL wallets to expand your tracking network.
• Check wallets across multiple networks: Check wallet addresses on different blockchains for a comprehensive view of their portfolio.

Wallet checking is a valuable skill that helps you “read” the crypto market, learn from experienced investors, and make smarter investment decisions. Practice regularly and combine it with other analytical methods to optimize your investment outcomes.

We hope this article from Solution Of Blockchain has provided you with useful knowledge about wallet checking. Wishing you success on your crypto investment journey!