Recently, I’ve seen people staring at whale addresses and trying to copy their trades. Let me first be a nagging mom: make sure to tell whether they’re **opening/establishing a position** or whether they’re **hedging / doing arbitrage**. On-chain it may look like they’ve “bought,” but they could be opening shorts on the other side, or they might just be moving spot assets to use as collateral. If you blindly follow in, you’ll end up becoming part of their risk control……

When I was a beginner, I also misunderstood. I thought that when whales buy, it’s automatically a bullish signal. Now I understand this instead: big players are more like adjusting their positions and managing risk. Big moves don’t necessarily mean a clear direction—especially when you run into those new L1/L2 projects that offer incentives to pump TVL. Everyone complains “dig, sell,” yet they still keep going to trade. More often than not, whales are just doing back-and-forth swings.

Anyway, whenever I see large inflows and outflows now, I first check whether they’re done in batches and whether there are signs of opposite positions at the same time, then I decide whether to get involved. If I do, I only use a small position—don’t stay up late staring at the charts and getting yourself worked up.