Wallet Tracking: The Basics

Wallet tracking means watching the activity of specific wallets: which tokens they buy, when they buy, how much, and when they sell. Since every transaction on the blockchain is public, anyone can see it.
The wallets people watch are usually called smart money, KOLs, or traders with a good track record.

• You can find tokens earlier, from wallets that are often right.
• You can learn the entry and exit patterns of more experienced traders.
• You can see when a KOL who's shilling a token has actually already sold.

1. Find wallets: from leaderboards or the smart money features in your terminal (GMGN has labels like Smart Money and KOL), from the holder list of successful tokens, or from wallets that bought early on tokens that pumped.
2. Analyze the wallet: open the wallet's profile on GMGN. Look at its win rate, PnL, how long it usually holds, and which tokens it plays. Most important: understand that wallet's play (which MC it plays at, what kind of tokens, how long it holds) through your own analysis. Win rate (WR) isn't everything, so don't fixate on WR.

   

3. Save and name it: add it to the watchlist / wallet tracker in your terminal, and give it a label so it's easy to remember.

   

4. Turn on notifications: many terminals can notify you when a wallet you track buys or sells. A notification is only an idea: do further analysis first (check Chapter 2 and the lesson 2.14 checklist), don't just ape in blindly.
5. Review regularly: remove wallets whose performance drops.

• Consistent profit over a long time, not just one lucky hit.
• Position sizes that make sense and that you can follow.
• A pattern you can learn, for example always entering at a certain MC.

• Big PnL from just one token.
• Wallets that always buy in the first block. They could be sniper bots or insiders, hard to copy.
• Wallets that buy and then immediately sell to the people following them in.
• KOL wallets that get free tokens (transfers) and then sell. Remember the phishing label in lesson 2.13.

• You're always slower than the wallet you copy. You get a worse price.
• A wallet owner who knows they're being tracked can deliberately buy a token and then sell to their followers.
• A big wallet can absorb losses that would hurt you too much.
• Automatic copy trading still needs a money limit and a cut loss.

• Aping in blindly the moment you get a notification.
• Tracking a wallet whose big PnL comes from one token, or that always buys in the first block.
• Forgetting that you're always slower than the wallet you copy.

Following someone else's wallet still carries risk. Pick the ones with the smallest risk, and don't buy just because of greed.
Next up, lesson 3.3: Money Management & When to Take Profit.
Not financial advice.