How to Identify Already
Copytraded Wallets

Ever watched a very profitable wallet rack up incredible profits and thought, “I’ll just follow what they’re doing”? You’re not alone. Copy-trading catches plenty of eyes as a tempting shortcut to success, but there’s more to the story than just hitting “copy” and watching your portfolio grow.

That is why, in this blog post, we will see one of the biggest mistakes that many copytaders make that make them lose money without understanding why.

Playing Catch-Up Can Cost You

Let’s start with an example: Picture yourself surfing, you’ll never catch the same wave as the person ahead of you. Copy-trading works just like that. Most of the time (99,99%) you’ll always buy and sell after your mirror wallet. While you’re busy copying someone’s trade, they may have already locked in their position and the market’s moved on.

This timing gap hits your profits in several ways:

  • Markets swing quickly: What started as a perfect entry point could turn sour by the time you jump in due to the token’s high volatility, volume or low liquidity.
  • Other copy-traders buying too: Creating a crowd that pushes prices even further from where you want them.

Therefore, in this blog post, we will thoroughly explain how to identify wallets that are already being copytraded and why you should avoid them (unless you want to lose money).

Identifying a Copytraded Wallet

Let’s talk about those too-good-to-be-true wallets. You know the ones: Perfect win rates across most of the trades, like the one below. Sounds amazing, right?

Those eye-popping returns might look tempting, but consistently astronomical profits usually hide something darker: High risk plays or market manipulation you won’t be able to copy successfully.

At this point, you’re probably looking at one of three things: someone farming for followers to profit from your copies, a sniper using specialized tools to catch market gaps faster than any human could follow or someone who has some sort of insider info (Very rare case).

Although it may seem counter-intuitive, you should stay away from these types of wallets ONLY if the following holds true: The 1s candle of whenever he buys (or the next one) is pretty big in comparison with the rest of the cart. If you spot prices shooting up right after they buy, that’s not natural market movement (that’s a stampede of copy-traders driving up prices. By the time you join in, you’re buying at the top).

For instance, the images below are a good visual representation of this:

 

What do both cases have in common? After the mirror wallet purchases, there is a sudden spike in the price of the token. Although there is no exact figure from which one can objectively determine if a wallet is copied, from 10-15% one could start to suspect, especially if the market cap of the token in question is low (below $500k).

Also, it is worth mentioning that the lower the liquidity of a token (and thus its market cap), the more pronounced the token spike is if the wallet is already copytraded by more people, so your entry price will be much worse. For instance, the image below perfectly showcases it:

As can be seen above, the token’s price spiked by 39% after the mirror wallet bought. Therefore, your entry price would be $40,000 market cap while your mirror wallet got in at $28,000.

Definitely, this is a case where you would lose money while your mirror wallet didn’t.

Do Your Homework First

Before you commit real money to copytrading any wallet, you should take the following steps into consideration:

  1. Study those one-second charts: This should be amongst the last thing you do after your performed you statical analysis (Win rate, ROI, etc). They’ll tell you if you’re seeing genuine skill or just copy-trade manipulation, like the wallet studied above.
  2. Look for patterns in their trading style: Do they stick to sketchy, low-liquidity tokens? Do their trades seem too perfectly timed? How often do the tokens pump right after your mirror wallet buys?

It should be noted that depending on the copytraders that the wallet has, the pump after the purchase may occur always or in most cases, but one thing is clear: If it happens very often it is because the wallet is heavily copytraded.

Smart(er) Ways to Copytrade

Don’t let FOMO drive your decisions. Instead, do this:

  • Take your time sizing up potential wallets to copy. Don’t forget about monitoring them first! (If you want to learn more about monitoring and how to do it properly, please referer to this blog post).
  • Spread your bets across several carefully chosen wallets. One very good trade can suffice three mid ones. At the end of the day, it’s all about making money. Doesn’t matter if it comes from 1 or 10 wallets.
  • Keep an eye on market conditions and be ready to switch things up. What’s the token liquidity? What’s the token market cap? Does the overall market have momentum, or most of the tokens are dead? Remember we mentioned before how the token’s liquidity influences the price your entry price?

Closing Thoughts

Copy-trading isn’t all bad, but hard to do properlty: It’s just trickier than most people think. Understanding what makes a wallet worth copying helps protect your investments. Think of it this way: if someone’s strategy looks too easy to copy, you’re probably missing something important.

Success leaves clues, but not every profitable wallet’s path can be followed. Focus on finding genuinely skilled traders who profit consistently and whose strategies work even when copied, rather than chasing perfect-looking performances that won’t last.