Smart Money Investing Guide

? Place Your Bets

The majority of traders lose money in crypto. However, there are a select few who manage to consistently beat the market. With Nansen, we are able to track the activities of these top investors both individually and as a segment of the market. This article will provide a summary from Nansen Research. For the full article, click here.

Smart Money Activity

Through the use of Nansen’s smart money labels, we are able to identify activity of top funds like BlockTower capital:

Nansen.ai: 05/05/2022 – Things to look out for when investing in cryptocurrencies – Example 2: BlockTower capital

• In the above example, BlockTower capital made 300% profit in a little over 2 weeks!
• Using Nansen to follow BlockTower’s on-chain activity could have made you the same profit. An example of just how powerful it can be to track smart money.

Smart Money Stablecoin Holdings

The amount of stablecoins an investor holds in their portfolio reflects their market sentiment. A high percentage of stablecoins demonstrates less appetite for risk, and vice versa.

Nansen.ai: 08/06/2022 – Stablecoins vs All Coins (Smart Money)

• Nansen’s Stablecoins vs All Coins suggests smart money have been growing increasingly risk off since April 2022.
• This, would have acted as an earlier indicator that market conditions were turning sour. Information that could have helped investors to manage their risk and protect their capital.

✅ Tip: Use Nansen’s smart money token holdings dashboard, to see the exact tokens that smart money are holding at any given time.

Remember, whilst smart money indicators can be used to great effect, they also carry risk. Investment decisions should never be based on a single indicator. However, when used in a wider strategy to assess confluence, smart money behavior is an invaluable tool.

In part 2, we will run through key market indicators that can be used to assess investment opportunities. For Nansen’s full report, click here.