🧠 Smart Money in crypto: who are they and why track them?
In the cryptocurrency world, Smart Money refers to "smart money", meaning capital owned by experienced players: institutional investors, venture funds, whales, and technology insiders.
These participants not only have substantial funds but also possess information, analytics, and access to early deals. Their actions serve as signals for the rest of the market. Are they buying tokens of a new project? Are they transferring assets to an exchange? Are they participating in IDOs or DAO voting?
Why it's important to follow Smart Money:
📊 Trend indicator — they often enter promising projects first.
⛏️ Early access — you can notice movements before the mass hype.
📉 Risk assessment — the exit of Smart Money from a project may indicate problems.
Today, many analytical platforms, such as Nansen, Arkham, or Lookonchain, allow tracking the wallets of such players in real-time.