Insider information in the cryptocurrency market is data that, when used correctly, allows traders to significantly boost their profits. These insights may involve upcoming token launches, project updates, or major exchange listings.
Where to find insider information?
There are several sources for insider data, each with its unique features. One of the most popular and reliable methods is on-chain analysis. This approach allows traders to track the transactions and movements of large asset holders (whales) and projects, helping them make more informed decisions.
For example, we previously covered a case where a trader turned $30 into $2 million — it's likely he was an insider. Article — Link
The main idea of using insider information is to enter an asset before the event becomes widely known to the public. Let's take the strategy involving the token $VISTA as an example:
How to use insider information?
The key concept of using insider data is to buy into an asset before the event is revealed to a broader audience. A good example is with the $VISTA token:
The user 0×430 might have known about the launch of $VISTA on the EtherVista platform and used this insider knowledge to purchase the token early during the launch.
To minimize risks, he distributed his tokens across 7 different wallets. This was a smart move, as it not only ensures diversification but also reduces the chance of being noticed by large investors or arbitrage bots.
48 hours later, when the price of the token rose 130 times, the trader sold his assets, locking in a $670K profit, as of 06/09/2024
It is important to remember that trading based on insider information can be very risky. The market does not always react to events as expected, and it's unwise to invest all your funds based on a single insider tip.
What types of wallets could be insiders?
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Developer and project team wallets – These wallets have access to major project events (updates, listings) before they are publicly announced. Example: link to Justin Sun’s wallet.
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Whale wallets (large investors) – These wallets often have access to private sales or internal information, allowing them to make advantageous trades ahead of others.
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Fund and venture capital wallets – These investors are involved in early-stage funding rounds, gaining knowledge about significant events long before they are made public.
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Exchange wallets – These wallets may show activity before token listings on major platforms.
How can you find insider wallets?
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Search by filters: ArbitrageScanner allows you to filter wallets by various criteria, helping identify wallets with insider-like behavior.
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AI-powered wallet search: ArbitrageScanner's AI feature helps identify wallets with similar behavior patterns. For instance, if a wallet frequently buys tokens before their price surges, you can find other wallets following similar strategies.
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Wallet collections: You can create personalized collections of wallets to track, allowing you to continuously monitor the actions of key market players. There are also pre-made collections of wallets, such as market makers, funds, and celebrity wallets.
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Bulk wallet analysis: This feature allows you to analyze multiple wallets at once, making it easier to spot common strategies and trends among large market participants.
Today, we’ve introduced you to strategies for finding insider information. Always practice risk management and money management when using these insights.
