What are crypto whale trackers and should you use them

There are several crypto investors worldwide, but some users have more investments than others. They are considered crypto whales and are those who are considered as the big players in the industry. 

What sets these crypto whales apart from regular investors is that their activities can impact the movement of the price of the coin in general. There are several pros and cons that these people might bring, that’s why many investors keep an eye out for them. 

With the importance of knowing what these massive whales can bring to the industry, some investors use a crypto whale tracker to learn more about them. In case you haven’t heard about it, here are some facts you need to know: 

What is crypto whale tracking? 

Crypto whale tracking is done by keeping a close eye on the transactions of the massive crypto investors that are reflected on the blockchain. It’s usually done on whale addresses and can be done on any crypto wallet as well. Given the fact that whale movements frequently have an impact on crypto prices, traders and investors closely track whale trades.

Why do you need to keep track of crypto whale transactions

Upon understanding what is a crypto whale, it is also important that you know why it is important for them to be tracked. Crypto whales cause significant waves to sway the crypto industry. They conveniently influence how other investors trade while reaping profits.

Simply put, these whales benefit from volatility. They achieve this by deceiving smaller investors by acting contrary to what other investors anticipate will occur.

They can also create a crash by selling a significant amount of coins to trigger a greater market sell-off, then jumping in to acquire more coins at a discount. To raise the value of their assets and then sell them at inflated prices which results in false inflation.

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How to track crypto whale activity? 

There are several ways how to track crypto whales. Here are some of them: 

• On-chain analysis → This involves an examination of transaction values and block sizes. Here, a high transaction value indicates that a significant sum of money has been exchanged. An enormous volume of data is also indicated by a huge block size.
• Wallet to exchange transactions → Whales usually trade crypto when they move into an exchange wallet. Market values might go up or down depending on the amount and currency being used. More volatile coins could signal that they are selling the crypto. Meanwhile, stable currencies transferred into an exchange wallet can signify a good investment.
• Exchange to wallet transactions → This involves taking crypto out of circulation by transferring it from an exchange to a wallet. Usually, the whale stats crypto drives up the price due to scarcity. If the currency in question is one of the more stable currencies, it might drive down the price by making it appear to be a bad investment.
• Wallet-to-wallet transactions → Monitoring wallet-to-wallet transfers reveals when crypto whales transfer funds. These trades typically have little impact on currency values and may point to a whale engaging in covert over-the-counter transactions. 
   

Popular crypto tracking tools 

Aside from the aforementioned tracking techniques, you can also whale tracker crypto tools. In case you haven't heard of them, here are some you may want to learn more about: 

• Whale Alert → This tracks more than a dozen different blockchains, including HIVE, Ethereum, and Bitcoin. It provides a free alternative which is helpful for getting started but excludes service alerts. Here, traders are limited to access data on transactions exceeding $500K and an hour's worth of transaction history.
• WhaleBot Alerts → This allows you to use its free service or the Captain's Club. The latter includes a premium tracking service that offers quicker alerts, push notifications, and exclusive Discord servers.
   

The cost of Captain's Club membership is expressed in Ether, so the prices may fluctuate on the price of ETH. There’s a lot of information available even on its free service but its enhanced pass offers more analysis and context.

• ClankApp → This records real-time transactions on its site and reflects it on their Twitter and Telegram accounts with the help of bots. You can sign up for email alerts, push notifications, and Telegram and Twitter feeds. Beginners who want to monitor whales can use the programme because it tracks 24 blockchains for free.
• Blockchain Explorers → Blockchain explorers work similarly to search engines. However, instead of various info, it allows you to track what cryptocurrencies are being purchased by crypto whales. Through transactions and blocks, they extract data from the blockchain and organise it into searchable categories.
   

This gives you access to transaction histories of popular wallet addresses as well as the specifics of each block. It also shows the biggest transaction of the day and important information about such transactions. With this, you can track affected wallets and instantly detect whale moves.

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Pros and cons of using crypto tracking tools 

There are several pros and cons that come with using crypto whale trackers as well. Keep these in mind so that you’ll know what to expect when using such: 

Pros 

• Trackers will save you a lot of time since they make it easier to find whales and trace their transactions.
• You’ll find it easier to spot changes in the data flow instead when doing the research all on your own. When the value of a currency declines, fast action can let you buy the dip and enter the market at a discount before the value rises. This will also guide you to sell your assets before it crashes.
• You can make quick judgements and seize opportunities as they arise with real-time tracking.
• A crypto whale tracker tool's easy-to-understand data, charts, and graphs give you a thorough perspective of the cryptocurrency market and can speed up your learning.
   

Cons 

• Focusing on whale activities might make you miss out on other factors that affect market prices.
• Whales have large budgets and frequently take risks that most traders wouldn't consider. It might be stressful to watch them, which may result in bad financial judgement.
• In-depth tracking can cost hundreds to thousands of dollars each year, even if minimal tracking with many apps is cheap or free.
   

These are just some facts that you would have to keep in mind when planning to learn more about crypto whales and how to track them. By learning more about their activities, you can have an advantage over other investors as their movements will make an impact on the prices of the entire industry!

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Words: Kyra Jimenez