Asset assessment as a means of wallet analysis

We're discussing how assessing a wallet holder's assets can influence your trading decision

Asset assessment provides an understanding of what and in what quantity wallets accumulate or sell among their assets.

We'll discuss how beginners can analyze wallets on the blockchain, using as examples the wallet of a shitcoin trader and the wallet of a fund/large investor.

1) Wallet of a shitcoin trader

Fig. 1 - «Balance History of a Shitcoin Trader from ArbitrageScanner»

Such a wallet typically contains a wide variety of tokens with low value and high volatility. Traders of these assets often speculate on short-term price movements.

2) Analysis of a Fund/Large investor's wallet

This is a wallet that typically holds well-known tokens with high liquidity. The characteristic feature of such wallets is the medium to long-term holding of coins.

Studying the transaction history of the A16Z fund wallet (Fig. 2), we see that on April 9, 2021, the Compound token was deposited into the balance.

Fig. 2 - «Transaction History of A16Z Fund Wallet from ArbitrageScanner»

Following the fund's purchases could have earned 100% in 1 month (Fig. 3). Additionally, the Compound lending platform distributed many airdrops for activities on their platform.