Recently, I've seen people chasing "whale addresses" to copy trades again. My usual advice: don't get excited yet, first figure out whether they are building a position or hedging. On-chain, a large buy looks impressive, but they might be shorting on the other side or locking in risk in another pool... If you only see half the picture and rush in, it's very easy to lose your composure.

My own approach is pretty simple: compare the inflows and outflows of the same address over the past few days, along with their commonly used contract/spot accounts, to see if they are "moving back and forth" or frequently changing direction. If it looks like they are gradually building a position with consistent intervals, I might pay more attention; if there's a sudden large transaction followed immediately by dispersing and moving away, it's probably a risk control move, not suitable for copying.

As for taxes/compliance, honestly, I’m a bit slow on that. After seeing the discussion, I remembered: when deposit and withdrawal expectations tighten, whales prefer to hedge to ride out volatility, while retail traders are more easily misled by "fake moves." Anyway, I’d rather earn a little less than be part of someone else’s position management. That’s all for now.