Crypto

Crypto Wallet: How Crypto Wallet’s Tracking Helps?

  • Crypto Wallet Tracking helps an individual to track NFT transfers and transactions of ERC-20 tokens instantaneously, which can be further used to invest according to market movements.
  • Wallet Tracking gives Investors a more straightforward look over the account and its transaction over a certain period. By this, you can make smarter decisions for trading or investing in a specific cryptocurrency.
  • By tracking, users can also monitor their account’s assets without importing their private key.

If you’re thinking, “How is wallet tracking going to help or benefit my investment, and what are the impacts or actions of this work?” This article will answer all your queries.

What Is Crypto Wallet Tracking?

Crypto Wallet Tracking is focused on analyzing the movement and investments of significant stakeholders, Whales who hold a considerable amount of cryptocurrencies, and their assets, and obtain data for possible trading decisions.

Crypto wallet trackers are designed to provide information about a tracked wallet and whatever transactions it makes in a certain period using features like push notification which notifies the user whenever any transaction is completed.

The tracker API is designed to perform all those functions on the user’s behalf.

How Wallet Tracking Works?

Crypto tracking is done by wallet trackers, which use a third-party API to connect or access control over various on-chain cryptocurrency data feeds & transactions recorded.  These API(s) then manipulate and represent the data in a more helpful interface. 

The everyday things to keep in mind when tracking a wallet for profitable investments  are:

  1. The ratio of profit/Loss

It’s essential to focus on a smart wallet’s profit/loss ratio when you try to copy trade. It measures the average Profit of a winning business compared to the average Loss of a losing trade. It is tracing the transaction taking reference to the assets in the wallet to assume whether the wallet fits in a Red or green zone. 

  1. The flow of Transaction

If a wallet receives deposits from different wallets of a variable amount, then it can be considered an exchange wallet. Blockchain Explorer is used for tracking marks of these kinds of transactions & wallets. In standard cases, individual wallets have less transaction frequency and deal with few wallets. 

  1. Interacted protocols

Project and team wallets are generally assumed to interact with more advanced protocols and perform transactions like vesting, mass distribution, and staking rewards. These wallets are expected to interact with a few peers and exchanges. 

  1. Previous Investments

Always look at the time of purchase and the time of sale of an asset of a smart wallet. The way they manage their assets and how they got sold. If a wallet has scored a notable profit on behalf of its previous trade, that kind of account is considered to pay attention.

How to Find a Smart Wallet?

By using the explorer of the blockchain network, a user can find the wallets of top holders on which the assets are considered to be run. Explorers for older blockchains, like Bitcoin, usually have a ‘rich list’ feature that ranks holders in order of the assets in their custody.

The top holders of an intelligent contract token use a  network’s explorer, then get the asset’s smart contract address and afterward visit the explorer to mine more information. Here, we use the Arbitrum Token on the Arbitrum Layer-2 network.

Conclusion

Crypto Wallet Tracking helps analyze the different aspects and insight of the Crypto market. Transactions, or the transaction status, could be checked using full-node or by other wallet blockchain explorer websites.

Radhe

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