Recently, I keep seeing screenshots saying "Whale bought again," and everyone in the group immediately wants to follow suit.

Now I think I should pause first: is this transaction actually building a position, or is it hedging/rebalancing?
To put it simply, big players buy a little spot and open a counter-position to lock in volatility; on-chain, you only see "buy" and jump in, which can easily turn into a classic replay of my FOMO warrior moments…

And now those on-chain data tools and address labels are quite awkward.
It's not just lagging, some labels might even be deliberately misleading.
You might think it's smart money, but it's actually a drama queen address.
My simple method: first, see if it’s continuously accumulating in batches, whether there’s a pullback and whether it continues to buy;
also, check if the trading volume supports the move.
I treat price surges with no volume as noise.
When I get itchy to jump in, I write a line: "What am I betting on," and if I can't come up with it, I just watch and wait.