Why is good to follow the “Smart Money”.
2 min readBanks around the world are struggling to survive and Bitcoin is celebrating its best performance in seven years. crazy times The leading cryptocurrency is currently trading at just under 27,000 US dollars. A monthly increase of almost 17 percent. In the midst of a historic banking crisis. “Four years ago that would have been unimaginable,” says Pete Sady. The ex-PayPaler now works as Head of Sales at Nansen, one of the leading US data analysts in the field of crypto since 2019. “Many analysts see the moment that everyone has been waiting for has come: the industry is slowly separating from the classic tech and financial market in its assessment.
We meet the American on Wednesday afternoon at Paris Blockchain Week, which took place in the catacombs of the Louvre last week, one of Europe’s largest crypto gatherings with 10,000 attendees. The focus of his company Nansen: market analysis, especially for traders.
The company monitors the on-chain data of 16 top blockchains such as Bitcoin, Ethereum and Cardano. These constitute almost 95 percent of the total transaction volume. Nansen derives many analyzes from this. But also two services that Sady says are particularly helpful for traders when navigating the market.
Follow the smart money
A way to fight your way through the investment jungle: follow the “smart money”. Nansen analyzes the behavior of crypto wallets and clusters them into group profiles. One of them: smart money. “These are the most successful traders who were often right in their trading decisions, be it NFTs or cryptocurrencies,” explains Sady. Nansen follows their movements and identifies possible courses of action for individuals.
Risk Behavior Warnings
In addition, Nansen also keeps an eye on potential dangers in the market. It offers a background check for projects: Who are the founders? Were they involved in dubious deals? Who are the whales? And does one individual hold the most tokens? In addition, the company regularly issues warnings on social media about unusual movements of whales that indicate a dump, for example from wallets owned by Vitalik Buterin or Elon Musk.
