Guide: How can ordinary users track smart money and follow wallets?

This article is the third in the "Meme Coin Getting Started Guide Series."

This article will detail the specific operational guidelines for tracking smart money and copying wallets, helping everyone find their own opportunities in the meme coin market!

Tracking "Smart Money," that is, tracking the wallet addresses of individuals or institutions with professional trading capabilities, information advantages, and excellent trading records, is a very effective strategy.

The typical characteristics of meme coins are high volatility and potential high returns, which has attracted a large number of users to participate.

However, the meme coin market is also full of noise and traps. Each of us is both hunter and prey, so we need to learn how to discover information in a timely manner, quickly filter information, and effectively guide our own decisions.

1. What is smart money? Smart money usually refers to professional investment institutions or individual investors with outstanding investment research capabilities, information advantages and rich trading experience. These wallets often have large amounts of funds, mature trading strategies, and a certain influence on market trends and prices.

The characteristics of smart money include:

（1） Early participation:They often build positions in the early stages of a project or when the price is low.

（2） High winning rate:Through historical trading records, we can see that their operations often achieve higher returns.

（3） Information advantage: They may gain an advantage through insider information, social media, or on-chain data analysis.

The core logic of tracking smart money is that by analyzing their trading behavior, ordinary investors can "stand on the shoulders of giants" and reduce the risk of blind operations.

2. Why track smart money?

In general, there are many benefits to following smart money:

（1） Reduce blindness:The trading behavior of smart money can serve as our reference to reduce the risk of blindly following the trend.

（2） Improve efficiency:By following smart money, investors can quickly lock in potential projects and avoid wasting time on low-quality Meme coins.

（3）Learning to trade: Analyzing the operating logic of smart money will help improve our own market insight and trading capabilities.

3. Specific steps to track smart money

Step 1: Prepare the necessary tools and wallet

If you want to do your work well, you must first sharpen your tools. Here are some essential products recommended:

On-chain trading platform: GMGN is the first choice. It is a star product born in this round of meme coin craze. It is a platform that integrates Meme coin data analysis and trading tools, suitable for tracking smart money;

On-chain monitoring tool: ChainFM is the first choice. This is a very popular address monitoring product recently. It supports ordinary users to create their own channels and manage the smart money addresses they track in the channels. Then they can see the on-chain actions related to the smart money;

Wallet: OKX Wallet and Binance Wallet are recommended. These exchange wallets are very good.

Step 2: Find the smart money address

How do you find the smart money address? The core channels are as follows: (1) Screening through on-chain analysis tools: In GMGN, there is a special "follow-up" module, which lists various smart money address lists, and can find wallet addresses with high yields; (2) Analyze the early traders of popular Meme coins: Choose a Meme coin that has performed strongly recently (such as $TRUMP), and you can look at its trader list and holder list (in the transaction details of GMGN) to find the wallet address that bought earlier and has higher returns.

（3）Follow the community and well-known traders on Twitter:In the community, there are many well-known traders with high win rates, such as 0xSun, who made a wave to A9 in $TRUMP.

Step 3: Verify the smart money address

After finding a potential smart money address, you need to verify its reliability to avoid copying "fake smart money" or robot addresses. The key is to examine its historical performance: review the wallet's historical transaction records, analyze its win rate and rate of return, and prioritize wallets with long-term profitability and stable trading strategies. A very good verification method is to copy the smart money address to be verified and search directly on the smart money tracking platform ChainFM. We can see how many channels have included this address and its related tags. After the initial screening, we need to further screen and analyze to find the smart money address that suits our trading style. What kind of smart money should we choose? Here are the core characteristics of smart money addresses: few moves, high winning rate, and big returns with a small investment.

（1） Multiple winning rate: This address has captured at least 2 Golden Dogs (market value of more than 10 million US dollars)

（2） Excellent investment vision: The market value from the first purchase to the highest market value has increased by at least 10 times

（3） High profit standard: The profit of a single Golden Dog exceeds 100,000 US dollars

（4）Transaction success rate: generally more than 30%

（5）Number of transaction currencies: less than 5 per day, the less the better

Step 4: Track smart money transactions in real time

After confirming the smart money address, use tools to monitor its transaction behavior in real time and set up wallet tracking:

For example, in GMGN, add the target smart money address to the "Watchlist" to view its buy and sell operations in real time.

Here we recommend the smart money tracking platform ChainFM, which allows you to intuitively see the relevant tags and actions of each address.

Step 5: Execute wallet follow-up

Currently, there are very useful follow-up strategy tools on GMGN,

(1) Buy mode: Maximum follow-up buy, supports setting the maximum follow-up buy amount. If it does not exceed the set upper limit, you can buy the same amount as the follow-up wallet; Fixed buy, no matter how much the follow-up wallet address buys, a fixed amount will be bought;

: text="">（2）Selling mode: support following selling and custom stop-loss and take-profit. Those who know how to buy are apprentices, and those who know how to sell are masters. If you want to make high profits, follow selling. If you are more conservative and just want a fixed income, you can customize stop-loss and take-profit.

（3）Advanced settings: filter the relevant parameters of the buying target of the following wallet, such as market value, pool, creation time, etc.

These strategies are sufficient for our daily use, but it should be noted that GMGN only supports following orders using TG Bot mode, that is, GMGN helps you generate a wallet address, and your private key is hosted by the platform, which involves certain risks.

Step 6: Continuously Optimize the Copy Trading Strategy

Copying the smart money isn't a one-time thing; we need to continually optimize our copy trading strategy and smart money addresses.

Smart money will frequently update its own addresses, so we must constantly maintain the validity of the addresses we track and eliminate dormant addresses or those with declining win rates.

The lesson here is: it's more about quality than quantity of smart money addresses; 10 is enough. 4. Summary

Copying orders is not a panacea for trading, and it cannot make you make big money.

More importantly, copying orders actually contains a lot of risks. For example, some smart money will kill copy orders. After discovering that there are many small tails, they will harvest the copy orders first. Therefore, we must return to our original intention and understand why we are looking for smart money: The most important thing about finding smart money addresses is to assist us in our trading decisions and improve our own market insight and trading capabilities. In the market, information is very important. Therefore, we need to establish our own high-quality smart money monitoring list, essentially to gain an on-chain information advantage. I hope everyone can cultivate their minds in this Meme craze, find their own trading style, and find their own big opportunities!