Tracking Blockchain Transactions

and why it’s useful for Crypto Traders

Aditya Chaudhary
Full Stack Developer and On-chain data nerd.
Blockchain
Meta
Trading
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As a trader, you would often encounter some twitter threads or news where a trader turned a few thousand dollars into millions or more. The first thing that comes to mind after reading such threads is to find their wallet and copy trade them in order to get similar green PnL. But, it is not that simple and straight! Many times even a great trader can have a loss and get rugged as they would miss some proper due diligence aka “DYOR” which you could have observed if it was not an automated copy trade.

In this blog post, we will learn:

  1. How to find traders’ wallets who find 100x gems.
  2. Why even track wallets.
  3. A case study of tracking a top trader
  4. Why one shouldn’t copy trade using a bot.

How to find traders’s wallets who find 100x gems

The whole strategy is to find the next token that could possibly give good returns. Crypto space is full of people who are exceptionally well at finding gems. Our goal is to find such wallets and track what they buy next. To get the top traders who made the most off a coin, we recommend using DexScreener. DexScreener provides real time decentralized exchange analytics across various networks like Ethereum, Solana, Avax, etc.

On DexScreener, select the network on which you want to trade and find top traders. For instance, let’s go with Ethereum

Now we can see top tokens with the most volume. Select the token on which you want to find the top trader.
Let’s go with $TROLL here

NOTE: We don’t hold or endorse any token mentioned in this post.

Under the “Top Traders” tab, you can see the wallets that made the most off the token $TROLL. Choose any wallet which you want to track


Make sure that the wallet you want to track is not a bot that buys all tokens when they mint. To check if a wallet belongs to a bot, go to Etherscan and examine how many transactions they have made and at what time intervals. If there are numerous transactions occurring at frequent intervals, it indicates that they are likely a bot.

On January 18th, 2024, we selected this wallet that made big returns off  $TROLL token. Their profit was + $1,783,217. The wallet was: 0x97b8dc4683514...a02602ae97a0. We started to track the wallet using Bstream. Refer to this blog post to learn how you can track tokens or wallets on Uniswap.

Why even track wallets:

As mentioned before, our goal is to find the next gem. Thousands of tokens are minted every day, and most of them turn out to be scam. It is very hard to find a token that is even worth researching. With the wallet tracking strategy, we can identify tokens that are actually being bought by a trader who has had massive returns in the past with other tokens. When a trader with a good track record buys a new token, we can assume:


1. They did some research about tokenomics, team etc.  (if not, we will do it anyways)
2. They may know some secret information or “alpha”

A case study of tracking a top trader.

Now, returning to tracking the wallet that made big on $TROLL. Two days later, that wallet bought $STONKS and $SKID tokens.

The wallet purchased the token very early, below the market cap of $100k.

This was a perfect case study to understand how using on-chain alerts and a bit of manual due diligence can help traders catch new gems early on. The best strategy isn’t to go 100% automated mode using copy trading bots, but to stay in the middle with the perfect use case of right tools and human conviction!

Cons of Copy Trading Bots

Now, one can argue why not directly copy trade such traders instead of doing the manual work. The above mentioned case had 1 failure rate out of 3. It could get bad in a few other cases. It’s very risky to handle control of your fund in a bot that will buy tokens without doing any research. While, copy trading can be a bit useful in some cases, it comes with following cons:


1. Bots can end up buying 100s of tokens. At that point it will be hard to make note of all    tokens and properly research them.

2. If the subject address who is being copy traded gets to know that they are being copy traded, they can easily rug the bot.

3. Risk of technical issues where a bug can drain the bot. For example, Unibot was hacked where users lost $500,000+. Read more about the news here

4. Bots don’t have emotional intelligence and cannot account for market sentiments. In the past, we have seen how specific tweets of big figures on twitter have influenced the crypto market. There is a good chance a bot can miss out on an obvious token which is trending on twitter.

5. The crypto industry is already full of a lot of bots and it can be hard for your bot to compete with others who are willing to pay thousands of dollars in gas fees just to be early on the chain.

In conclusion, the safest strategy is to find big winners, track what they are buying, research about their new investments and then buy a token.
That’s it! That marks the end of this blog. Make sure to follow us on twitter and join our discord to stay tuned. We will be publishing at least 3-4 more such case studies every month.

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