Who Is Smart Money π€?
Why should you pay attention to them?
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Why should you pay attention to them?
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2/ Smart Money on Nansenβs dashboard is denominated by this nerdy smiley emoji - π€
3/ There are different categories of Smart Money, each being the top of their category (Fund, Yield Farming and NFT). Other than funds, these Smart Money labels are a title that has to be βearnedβ by being at the top of their game.
4/ Being profitable is not enough to get assigned a Smart Money title. These labels are also refreshed daily. For some labels, a Smart Money has to be consistent with their performance to remain at the top and if they are not, the labels will get assigned to another wallet.
5/ Letβs look at the different categories of Smart Money π€:
- Fund
- Smart LP
- Smarter LP
- Smart NFT Trader
- Smart NFT Hodler
- Smart NFT Early Adopter
- Smart NFT Minter
- Flash Boy
- First Mover Staking
- First Mover LP
- Fund
- Smart LP
- Smarter LP
- Smart NFT Trader
- Smart NFT Hodler
- Smart NFT Early Adopter
- Smart NFT Minter
- Flash Boy
- First Mover Staking
- First Mover LP
6/ In this guide, we will focus on 3 categories of Smart Money - Fund, Smart LP and Smarter LP
7/ Fund - Public entity that invests and manages money in crypto
Smart LP - Made more than US$100,000 providing liquidity and mining liquidity by staking pool tokens on Uniswap or SushiSwap. Profit calculations do not include permanent loss
Smart LP - Made more than US$100,000 providing liquidity and mining liquidity by staking pool tokens on Uniswap or SushiSwap. Profit calculations do not include permanent loss
8/ Smarter LP - Top 1% of addresses providing liquidity and mining liquidity by staking pool tokens on any Uniswap V2 type of DEX in terms of profit and ROI. Profit calculations include impermanent loss
9/ For detailed of other Smart Money, check out - nansen.ai
10/ For my buy-and-hold play, I normally look out for what the funds are doing. For yield farming play, I tend to follow what Smarter LP are doing. Having said that, do not follow blindly everytime you see a fund having a positive inflow of a token.
11/ There are multiple reasons that can cause a positive inflow into a fund wallet, not every inflow is a buying transaction. We will talk more about this in the next chapter.
12/ For now, just note not to ape immediately once you see an inflow of token into the fund's wallet, but instead, investigate further.
13/ When it comes to my yield farming allocations, Iβd look to Smarter LP to look for ideas. I will not ape immediately into the pool. After spotting the opportunity, I will research into the project, the token I need to gain exposure to participate in the pool and the source of
14/ yield. If I canβt identify the source of yield, I am the yield. @Route2FI says it best
15/ With these labels, it allows me to build my own thesis for the project and build conviction. This will be especially crucial in a bear market, where conviction is needed to not paperhand your position.
16/ When I position myself alongside Smart Money, at least if things go south, I am going down with the big boys.
17/ This is Chapter 4 of the guide. For other chapters, check out -
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