Insight on How to Track Crypto Wallets

In an industry where blockchain activities can be publicly observed. One of the most underused advantages available to crypto traders, is the ability to track other wallets. Every transaction made on the blockchain is traceable. Wallet tracking turns this transparency into actionable information. This offers a glimpse into the strategies, timing and confidence levels of other traders. Especially those considered “smart money.”

When used correctly, wallet tracking is not about passive observation. It’s about gaining insight and identifying trends early. Its also about improving one’s decision-making in a competitive market.

What Is Wallet Tracking?

Crypto wallet tracking is the process of monitoring blockchain-based wallet addresses. It includes observing their transactions, holdings and interactions, with smart contracts and protocols. These transactions are on the public ledger by design, enabling anyone to see what and when assets are being bought, sold or moved.

There are generally three key steps to effectively tracking crypto wallets. First, locating the wallet. Second, gathering data from its transaction and trade history. And finally, interpreting that data to decide whether the wallet is worth continuing to follow.

Unlike portfolio tracking, which focuses on managing your own assets, wallet tracking emphasizes observation of other participants, allowing you to learn from experienced or well capitalized actors.

Why Track Other Wallets?

While some might consider tracking wallets invasive, others argue that the data is already publicly available on the blockchain. Whether it’s discovered independently or surfaced through tools for broader visibility. It doesn’t change the fact that it’s public information.

Either way, wallet tracking provides both beginners and experienced traders, with an advantage they likely never had before. Reasons why some users incorporate wallet tracking into their trading strategy, are to;

• Identify Early Trends: By tracking accumulation patterns, you can often see interest in a token before it gains wider attention.
• Learn From Performance: Consistently profitable wallets, often exhibit repeatable patterns in terms of; timing, sizing and asset selection.
• Gain Confidence or Caution: Seeing large or experienced wallets exit a position, may influence your own decisions to reduce exposure.
• Validate Your Research: Observing similar moves from unrelated high-performing wallets, may reinforce your conviction on a trade. ⁽¹⁾

How to Find Wallets Worth Tracking

If you’re new to wallet tracking or just not familiar with the process. Finding wallets worth following isn’t always straightforward. While there’s no universal “smart money” list, using a watchlist or portfolio tracking tool can really help. Additionally, the methods below offer a solid starting point, for identifying wallets with meaningful activity:

A. Blockchain Explorer “Top Holders”

One way to begin, is by examining the top token holders using block explorers such as; Etherscan, Arbiscan, BaseScan, Polygonscan or SolScan. Aim to focus on non-exchange or non-institutional addresses showing:

• Multiple entries at different times (dollar-cost entries / DCA).
• Low turnover or high conviction.
• Consistent interaction with DeFi protocols or strategic assets.

B. Use Arkham & Lookonchain

• Arkham Intelligence offers identity tagging, along with a structured way to view wallet clusters, and their on-chain behaviors. The web based tool actually has a database of influencer wallets, which is searchable directly on their website.
• Lookonchain tracks smart money trades, then shares them primarily through Twitter posts and linked articles. Often listing wallet addresses and transactions, within or toward the end of the write-up.

C. Profit and Loss (PnL)

Quickly evaluate historical profitability or losses of the wallet’s past trades as a measure of reliability. You can do this by comparing gains on winning trades, to losses on losing trades. If their current holdings are in profit, it may be worth tracking their future moves.

D. Previous Investments

Check the wallet’s past holdings and trade history to identify patterns of consistent performance or strategy. One thing to definitely make note of is their entry and exit timing. Did their trades result in consistent profits. A strong track record can signal smart money worth following.

E. Transaction Flow

Pay attention to where funds originate and end up. Frequent deposits from multiple addresses might signal exchange wallets. Stable inflows / outflows can help differentiate trader wallets from operational / institutional wallets.

F. Social or Community Sources

Some Telegram groups, Discord communities, Twitter / X profiles, or analysts will publish wallet addresses of known successful traders. While these should be vetted independently, they can serve as a good starting point. ^{(2, 3)}

Note: DEX Screener allows you to sort charts by top holders. Places like BirdEye also provide info on trending tokens and profitable traders. Lastly, Whale Alert is good source worth checking out.

What Should You Track?

Once your research is complete and you’ve found some wallets to follow. There are some actions or indicators you will want to observe. Below is a brief list with some of the most important elements to monitor:

• New Token Accumulations: Look at what they’re buying and in what amounts. First-time interaction is a stronger signal than repeat buys of older assets.
• Type & Direction of Transactions: Make an effort to identify whether wallets are actively buying, selling, staking or claiming tokens. Additionally, observe the direction (e.g., transfers to exchanges might indicate upcoming sales).
• Amount Transacted: Large transactions relative to the wallet’s size or asset market cap. Often reflect stronger conviction and can provide more meaningful insights.
• Protocol Interactions: Watch what DeFi platforms or NFTs they engage with. Early use of new protocols can indicate strong market attention.
• Frequency & Consistency: Repeated buying, staking, or farming activity shows strategic intent. Sporadic movements are harder to interpret.
• Entry Timing vs. Price Action: Compare their entries to the broader chart. Are they buying dips, breakouts or consolidations?
• Assets Popular Among Smart Wallets: Note if several reputable wallets are buying or holding the same asset. Collective interest may suggest increased confidence in its potential. ⁽²⁾

Tools to Track Wallets Efficiently

In addition to the methods that we have mentioned above. There are more streamlined ways to organize the wallets you track. Below are some additional tools that you can use to track wallets effectively.

A. CoinStats

• Offers portfolio, wallet tracking and alerts. Great for tracking personal wallets, as well as visualizing wallet activity across chains.
• Use it to watch specific addresses for token movements or changes in asset composition.

C. Blockpit

• Designed primarily for tax tracking and compliance. It also includes a free tracker which is useful for organizing wallet holdings and activity historically.
• Can help you break down transactions and asset flows in a readable format.

D. Axiom Trade

• Currently Solana based. Axiom Trade is an emerging analytics tool focused on displaying on-chain signals. Used for monitoring trader behavior and surfacing patterns, from wallets interacting with particular tokens.
• Ideal for layering wallet behavior onto narrative-based research.

Interpreting Behavior Accurately

Not every wallet movement is a signal worth acting on. Spam tokens, airdrops, or internal transfers can easily distort what you’re seeing. When you can, always check how a token was acquired. Was it traded, staked or simply received? Do what you can when tracking wallets to:

• Ignore unsolicited airdrops: Many wallets receive spam tokens to create false signals. Last year, many times you would hear, “Vitalik has x% supply”, “Matt Furie has x% of supply”. There is a 90% chance or more, this supply was randomly airdropped. Matt Furie doesn’t even like how much his art is used in crypto.
• Check acquisition method: Look for DEX trades or staking events versus random transfers. Also, similar to above, high value wallets are sometimes targeted and airdropped scam tokens. Many portfolio trackers don’t show these “high value” appearing contracts, that are mostly honeypots or can drain your wallet. However, it’s still important to be aware of.
• Watch multiple wallets: Try not to base conclusions on a single trader’s actions. Confirmation from several smart wallets are usually more reliable and helps strengthens your insight.
• Distinguish between team / dev wallets vs. individual investors: Team / dev wallets, may be moving funds for non-trading purposes. Such as liquidity for a new chain (via wormhole) or CEX listings. They may also be using these funds for vesting schedules or treasury management.

Final Thoughts

Wallet tracking does offer a valuable advantage. It lets you learn from others in real time, using transparent on-chain data. Although it’s not a guaranteed strategy. Timing and intent can be unclear. What looks like conviction to some, might be testing. What seems like a selloff to others, could be a simple migration.

Use tracking to validate your ideas, not dictate them. With the right context and supporting research. Tracking smart wallets can give you a more informed, confident edge in navigating market behavior.

To obtain more information about portfolio & wallet tracking with CoinStats, click here. If you trade more on Solana and are looking for an advanced tool that can also track wallets. Have a look at Axiom Trade and see why it might be beneficial to your setup.

Page Last Reviewed / Updated: 24-May-2025