Crypto Whale Alerts for Informed Investment Decisions



The cryptocurrency market is easily swayed by large asset movements. Individual investors holding huge portfolios can increase the price of a coin by purchasing or moving a lot of it. Retail traders who rely on immediate reactive trades often track addresses that hold large amounts of tokens and buy/sell based on the detected asset movement.

You can use a custom crypto signal bot that will react to large transactions instantly and open trades according to your preferences. Using this method is a solid approach to trading. However, it is important to know the source of a signal and follow providers that can notify you about notable transactions via different communication channels.

Building a fully automated trading system using the best crypto whale tracking tools is entirely possible since many signal providers use web hooks to deliver notifications that can be interpreted by automation services. If you are interested in using contemporary trading instruments, choosing a good provider is crucial.

Crypto whale alerts: meaning and significance

The cryptocurrency community calls large capital holders crypto whales. The name is associated not with an individual, although such ways of using the word also exist, but with a Bitcoin address or any other wallet address that holds a large amount of tokens and moves them regularly. Single transactions can be worth of millions of dollars and affect the market dramatically.

It is important to interpret crypto whale activity correctly and not overreact to routine asset movements. For example, some of the addresses are used by cryptocurrency exchanges like Binance, Coinbase, KuCoin, and many others. It means that financial transactions may not have happened and exchanges are simply moving coins from one place to another.

Some crypto whales may move their tokens in preparation for a big sell or buy. Again, carefully tracking their actions instead of opening a market position right away is always a good strategy. The issue is that many individual traders may independently react too quickly and case price changes that would not have happened otherwise.

Understanding the role crypto whales play in the market and how you can benefit from simply observing their behavior is a hugely important skill that many retail traders lack. Some simply do not know that free crypto whale alert services exist and provide valuable insights to everyone. However, these signals must originate from on-chain analytics and experts. Following random Telegram channels or Instagram influencers who do not disclose their sources is a bad idea.

Here are some reasons why crypto whales are important for the market and how they affect it:

  • Whales hold large amounts of assets. For example, the BTC community has a term “coiner” that means an individual owning at least 1 Bitcoin. Some say that there are not more than 110,000 thousand whole coiners. The number of addresses holding over 1 BTC is roughly 1 million. Some of these addresses are owned by a single investor who can definitely move the price needle in the right direction by simply selling their stock.
  • Large asset movements often indicate the forming sentiment in the market. Since many tokens are owned by institutionalized individuals who have insights in the world of global trade, politics, and policy making, they can make moves in anticipation of important changes and announcements. Following addresses that suddenly start aggregating funds is a good way of determining if a big player is preparing to sell or buy.
  • Many crypto whales are early adopters. Some investors hold large bags of ETH, BTC, LTC, and other tokens since the moment when they were cheaper than dust. These assets are waiting to be liquidated and exchanged for fiat. Since they were never moved, they never affected the market. Tracking addresses that did not have any activity for long periods is a good way of searching for signals that may be a surprise to the larger community of retail traders.

Cryptocurrency whale wallets play a significant role in the DeFi ecosystem. Their decisions often affect the market as a whole and leaver ripples all around forcing assets to look for new support levels. Contemporary retail traders have a huge advantage over their predecessors who had no means to determine when a big investor will sell their stock of bonds or shares.

Are crypto whale alerts profitable?

Asset movements do not tell us anything on their own. Some users may be transferring tokens to cold storage, exchanges move their holdings around. Too many ways to interpret who any particular transaction will affect the market.

It is important to remember that these signals provide context to investment decisions made by individual retail traders. You should be thinking about your next move after considering how recent transaction may affect the market in the future. For example, a sudden influx of tokens to exchange addresses can indicate that someone is preparing to sell them. Prepare to act accordingly when a huge sell happens.

These signals can be incredibly useful if you learn to interpret them correctly and apply your knowledge to the current market situation. Just as any other tool that helps investors make better forecasts, advanced crypto whale tracking techniques like on-chain analytics, manual tracking, and more are great in the hands of a smart trader.

How to track crypto whales?

Modern traders have a wide range of whale tracking tools at their disposal. With the right information, one can conduct a thorough crypto whale sentiment analysis. In essence, it is an analytical approach that uses whale accumulation as an indicator of what may happen in the nearest future. For example, concentration of funds in many addresses often promises a strong bullish movement.

Tracking transactions is possible thanks to the transparent nature of blockchain ledgers that allow anyone to look at the history of asset movements that happened on chain. Companies that provide on-chain analytics can filter out smaller transactions and focus only on significant asset movements to produce high-quality signals relevant to retail trading.

There are several important decisions that a retail trader must make when contemplating which service to use:

  • What type of notification system is preferred? Companies like can send notifications via e-mail, SMS, voicemail, slack, browser, Telegram, and Discord. Advanced users may choose to use direct API connection or webhooks. Choose providers that use your preferred notification system.
  • What kind of signals do you want to receive? If you are interested in tracking a specific asset, using something like Whale-Alert is a good idea. However, some companies offer a better experience to users interested in using data from multiple networks simultaneously.
  • How do you want to use signals? Manual trading is a traditional way of handling crypto whale signals. Many retail traders prefer spending a lot of time on analyzing asset movements and open market positions decisively using a combination of technical analysis, signals, and intuition. On the other hand, the new generation of investors prefers automation due to its reaction speed and the ability to fine tune them.

Experienced traders believe that using whale alerts for technical analysis provide flexibility and an additional level of redundancy to confirm the validity of forecasts during the decision-making process. It is true that you can use crypto whale signals to build advanced analytical tools. Many power users of the TradingView platform created exciting instruments to work with.

L2 KDJ with Whale Pump Detector by BlackCat1402

A “standard” KDJ oscillator consists of K and D values of Stochastic and the J is the standard deviation of D. The indicator is focused on identifying moments when assets are oversold or overbought. The use of Stochastic as the main underlying function is a good idea. The TradingView community has been quite positive about L2 KDJ. The addition of a pump detector is just a cherry on top.

The indicator uses on-chain analytics to track asset accumulation and show when the price is likely to go up (whales buy a lot) or down (whales sell a lot). The tool is designed to work within short time frames and becomes wobbly when applied to longer periods.

Whale Alert by IcoStan

This simple tool is an excellent application of general information about asset movement. The indicator deploys vertical lines when whales are “around” and make their moves in the market. Since it cannot track whether their market positions are short or long, it instead focuses on identifying moments when there is a visible accumulation of positions and increasing trading volumes.

The idea is that the indicator can show when price movements will be most dramatic enhancing the quality of the overall technical analysis strategy employed by a retail trader. The simplicity of the instrument is one of the reasons many users find it useful.

BTC’s #4 Whale Sells by TheSecretsofTrading

This open-source indicator is a good template to use if you have a couple of wallets that you want track. It shows when the asset movement is happening and deploys a simple vertical line. The creator of the source code said that they found a wallet that often aligns well with the general sentiment of the market.

You can turn it into a unique indicator by simply adjusting the code made entirely in Pine Editor. However, some technical knowhow is still required to use this particular tool successfully.

Building an automated trading system with crypto whale signals

Any contemporary crypto trading bot has three main components:

  1. A signal provider. Often, traders build their own technical analysis systems on TradingView.
  2. An automation provider. Companies like WunderTrading offer a wide range of automation tools.
  3. A CEX platform. Bots need a place where they will execute algorithms.

You should focus on finding a supplier of high-quality crypto whale signals that can be easily converted into something that your bots will understand. If you are coder and can build solutions personally, partnering with suppliers that send signals to Slack or via API should be a no-brainer. Investors who use contemporary automation platforms, should be interested in signals delivered via webhooks.

The latter is something that many WunderTrading users are closely familiar with since all bots that receive signals from the TradingView platforms do it via webhooks. It is a convenient method of delivery that makes it easier for investors to simply focus on fine-tuning their bots and adjusting settings instead of wasting time on trying to establish a reliable connection between signal suppliers and bots.

We strongly recommend reading more on crypto whale analysis for beginners since this topic is too large and requires a deep dive if you plan to use this type of signals in your trading strategies.


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