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WhaleAlert Twitter Account Tracks Massive Movements of Crypto
One way to play the markets is to try and get your trading orders in before the whales do. Whales is a common term in the crypto trading industry for individuals with deep pockets. That is, wallets that have significantly large amounts of cryptocurrency in them. Due to the anonymity factor of cryptocurrency, it is difficult to tell whether or not a wallet is a person or a company. There is a twitter account that has made it their sole mission to report on the movement of large sums of cryptocurrency. The account is called WhaleAlert, and it is one of the most popular twitter accounts on the net. The idea is that certain transfers done by whales can indicate a shift in the markets. Can these alerts be used as a trading strategy?
Tracking the Minting of New Coins
WhaleAlert does not just track large transfers, it also tracks when large amounts of Stablecoin get minted. For example, if a millionaire decides to turn 50 million dollars into USDT, then WhaleAlert will send out a tweet. It makes sense to do this because oftentimes, the next thing that happens is this money is transferred to an exchange for trading. First converting your USD into stablecoin is a common, and often simpler route for turning your hard earned cash into crypto. This also signifies a win for the crypto industry. Anytime a cold hard dollar is turned into stablecoin, we are one step closer to crypto mass adoption.
Tracking Transfers to and From Large Exchanges
The WhaleAlert twitter bot is actually pretty simple, and predictable in terms of how it works. The bot always structures its messages in exactly the same way. Some amount was transferred from wallet A to wallet B. If those wallets are known to be owned by someone, like Binance, then WhaleAlert will tag them in the tweet. Otherwise, WhaleAlert simply says that the source and destination are unknown. When the locations are tagged however, a lot of information can be gleaned. For example, if a large sum of bitcoin moves off of Binance, then we can assume that there is that much less bitcoin on the markets to be bought and sold. Some analysts are using this sort of information to derive stock to flow charts for bitcoin.
Follow the Money
If you want to get to the bottom of things, all you need to do is follow the money. Where the money is flowing will tell a lot about how the future will unfold. For pro traders, this is all that matters. This is their entire job. Their entire mandate is to analyze trends, make predictions, and bet on those outcomes with money. The aim is to correctly, or at least partially be correct, and be rewarded proportionately. Here is one example of a transaction worth paying attention to, and these happen all the time. On September 14, $250 million worth of USDT was minted. The questions to be asking yourself, is who owns this money, and where is this money going to go? One thing is for sure, WhaleAlert will know when this massive amount of crypto moves!
