For complete newbies, what is wallet tracking? Basically all transactions are saved on blockchain, so you always know when specific wallet buys or sells any coin. So you can use this knowledge to your advantage, and believe me sometimes it gives you insane advantage.
Firstly, I need to talk about one misconception some people might have. I saw people who think wallet tracking is something bad. Some people call it “pocket watching”, some think that it means you can’t find plays on your own, so you need to copytrade someone else etc. Let me be clear: this is complete bullshit. Every good trader must learn to track wallets. Everyone uses this knowledge differently, but they use it in some way. Without wallet tracking you are basically trading blindly aka gambling.
To emphasize my point I’ll tell you one secret: the most important part of memecoin isn’t ticker or picture or narrative, the most important part is holders. Most of the KOLs I saw in this space try to sell you the idea that to be a good trader you just need to be able to find good memes and buy them. That’s completely false. I saw it countless time: coin with great ticker is created, it dies after reaching 20k mc, another coin with the same ticker and picture is created a day later and it goes to 1 mil this time. The only difference is this time some big KOL bought it. Now you can either cry that it is completely unfair: you find a great coin but don’t make any money or you can accept the rules of the game and beat it.
4 moths old, insta died after bonding
1 week old, went to 100k even though it’s just a copy
The same narrative, but this time it went to 250k, because Te and ElCharto were shilling it
Also I need to say that wallet tracking and copytrading are 2 different things. Copytrading is automatically copying all the transactions of the wallet that you copytrade, while when I track the wallet I just get the notifications about this wallet’s transaction, and I can make my own decision to either buy the coin or not. I never copytrade and don’t recommend it to anyone.
Most of the people that try tracking wallets don’t really understand how to do it correctly. So first let’s cover some common mistakes.
The most common mistake is checking wallet’s profitability and winrate. People think that the more profitable wallet the better it is. In reality wallet’s profitability means almost nothing. There are thousands of insanely profitable wallets that are going to completely destroy you if you try to copytrade them. This is Cupsey: suqh5sHtr8HyJ7q8scBimULPkPpA557prMG47xCHQfK. This wallet is currently number 5 among all pump.fun wallets, but most of his trades are like 10 seconds long. There is just no way to make money from copytrading him. (I still track him, but never base my trading decisions on his buys or sells)
In reality what you should be looking at is how many copytraders the wallet has and how often the wallet rinses copytraders. For example this is this guy’s @moneymaykah_ wallet: 2CXbN6nuTTb4vCrtYM89SfQHMMKGPAW4mvFe6Ht4Yo6z. He is super profitable, but rinses copytraders 100 times every day, so you shouldn’t just blindly copy what he buys (but you actually sometimes can make easy money with this guy, if you know how).
So most people try to find the most profitable doxxed wallets, but in reality you should be looking for stealth wallets that don’t have many copytraders.