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Introduction
Welcome to Web3, where time is irrelevant and a week’s worth of news can often happen in a day.
A defining aspect of Web3 and crypto is speed. Investors who want to succeed in these markets must remain nimble and prepared for change. As the world blurs and the role of technology looms larger in everyday life, human beings become increasingly dependent upon it. One example of how technology can help investors might be outsourcing the monotonous process of checking assets against pre-specified criteria to machines. This frees up brain space and allows investors to take action the second their criteria are met.
With the help of crypto alerts, investors can get an edge in markets where speed is everything.
What are Crypto Alerts?
Crypto alerts notify investors when certain events take place. This allows investors to take immediate action in response to the event. Subcontracting the time-consuming process of fact-checking research allows the investors to operate in an elevated sphere. Alerts allow them to act when events are brought to their attention.
One example might be the most basic type of alert, one most readers will already be familiar with: price alerts. Intraday swings remain common within crypto and present an excellent opportunity to make a quick flip. For example, if Ethereum drops by 10% in a day, investors can configure it so that they will receive a notification on their preferred device, enabling them to swoop in and buy the dip.
Another example would be a new coin listing on a centralized exchange. Whenever a new coin lists, this increased market exposure can make listings another profitable exercise for traders. But timing remains paramount in these situations, hence the importance of real-time notifications.
Another prime example is alerts relating to Smart Money wallets. Investors may have selected a wallet, perhaps one of Nansen’s Smart Money wallets, and want to be aware of the wallet’s actions so that they can engage in copy-trading. Check out Nansen’s guide to Smart Money here: Following the nerds: Understanding Smart Money Labels andhow to use them.
The above cases are simple applications of crypto alerts. Investors with predetermined criteria can create far more advanced signals, and this article will outline examples. Attached is a more in-depth overview of smart alerts: Introducing Smart Alerts.
Why are They so Useful?
Crypto markets move fast, often faster than traditional markets. They present a litany of opportunities, and crypto alerts allow investors to capitalize on them.
Crypto alerts position the investor at the head of the market, and whether it be NFTs or tokens, allows them to move first. Automating processes means investors never miss an opportunity and allow them to be more productive and profitable. Timing is everything in Web3, and investors who delegate timing and research to machines put themselves in front of investors who do not.
How to Set up Alerts
Plenty of platforms offer crypto alerts, and all remain relatively simple to set up. Investors should first sit down and consider what they want to track. Nansen outlines several critical criteria investors should be aware of before investing: Things to Look Out for When Investing in Cryptocurrencies.
The whole point of crypto alerts is to receive rapid actionable notifications based on specific criteria, not a wall of useless notifications.
Nansen’s Smart Alerts outshine other crypto alerts available on the market due to Nansen’s extensive categorization and labeling of wallets. Tying crypto alerts to Smart Money labels means the notifications signal moves by proven crypto investors. These investors have track records of profitable actions making these signals far more valuable.
To attach a Smart Money label to an alert, investors select the label they want. Readers can look at the attached guide to understand the metrics Nansen employs in its labeling process: Wallet Labels.
Nansen’s smart alerts section has several preset alerts already configured for investors. But for investors curious to create their own alerts, an example will be featured below.
An investor has seen the hype surrounding the Arbitrum airdrop and wants to involve themselves in the ecosystem. They may want to increase their chance of receiving an airdrop but also desire to snatch up some of the early lucrative APYs that protocols use to entice new investors.
When a chain gains popularity, DApps want to be on that chain, and then a fight for liquidity between DApps on the chain ensues. Investors can take advantage of this and become floating voters, allocating their capital to the protocol that best serves their economic interests.
Let’s create a custom smart alert for Hot Contracts on the Arbitrum network.
Select an alert title and a description.
Then select the network. For this example, the advanced setting will be used that aggregates data hourly.
In this scenario, the goal is to find new contracts, hence the 7-day max contract age. The liquidity parameters are set for a $500,000 inflow within a day. Another parameter is minimum depositors to ensure that the contract attracts multiple investors and not one whale acting alone. If a contract meets both these qualifications, the alert will be triggered. And investors can deploy capital into the contract, which, if it meets both these criteria, looks likely to be relatively successful.
Types of Crypto Alerts with Examples
The following section outlines examples of smart alerts that investors can create utilizing Nansen. These crypto alerts focus on three main areas: tokens, yields, and NFT minting. Investors leveraging crypto alerts on Nansen should take advantage of the Smart Money label. Smart Money wallets are some of the best investors on-chain, and the wallets bearing this label have been consistently profitable over an extended period in various subsectors.
Yields
Hot Contracts
Liquidity chases liquidity. Investors keen to explore the ecosystem will find Hot Contract alerts some of the most rewarding. Hot Contracts showcase opportunities with DeFi and the NFT sphere. For investors new to DeFi and eager to participate, the following guide will be helpful: What is DeFi? Everything You Need to Know.
The smart contracts that have attracted the most liquidity in the past seven days are featured above. Smart alerts allow investors to outline criteria on capital inflow, the number of depositors, and even Smart Money interaction. Hot Contract alerts enable investors to move fast: the more liquidity an opportunity attracts, the lower the yield for all involved. Quick movers imbibe the early rewards.
Smarter LPs
Liquidity mining, or more colloquially yield farming, remains lucrative and the primary method for DeFi protocols to bootstrap liquidity. Nansen gives the Smarter LP wallet label to the best farmers on-chain. Smarter LPs crypto alerts notify the investor when these wallets join a new pool, with investors setting the minimum capital requirement to receive a notification.
NFT Minting
Very similar to token price alerts. Investors can set alerts for specific collections they are interested in owning. When a piece sells below the set threshold, investors will receive an alert, and soon this smart alert will integrate listings, making it even more potent. Investors do not have to monitor floor prices individually; once they have a collection in mind, it becomes a waiting game. The smart alerts do the grunt work and present the opportunity when it arises.
Below is an example of how to set up a floor price alert.
Investors select the collection they are interested in. Give a custom title to the alert, and add a description that clearly outlines its purpose. This helps avoid confusion if the alert does not trigger for an extended time.
Select the desired collection, in this case, Azuki. Then set the alert price, readers will see the current sales floor is 11 ETH, and this alert will trigger if the floor price reaches 8 ETH.
Finally, investors select where they want to receive the notification. And just like that, investors have a smart alert ready to notify them.
NFT Smart Minters
NFT Smart Minter alerts will be triggered when the predefined number of Smart Minter wallets participate in a new mint. Smart Minters have the greatest realized profits, and their involvement in a mint exists as a clear and simple bullish signal for the project’s prospects. For investors curious to learn more about NFTs, Nansen provides an overview covering everything: Everything You Need to Know About NFTs.
Smart NFT Aggregator Sweeps
NFT floor sweeps: an investor purchases all NFTs listed close to the floor price. Floor sweeps increase the barrier to ownership of the collection, sometimes done by the founding team but usually by buyers who believe the project is undervalued. When a Smart NFT Sweeper uses an aggregator to sweep the floor, Nansen will send an alert.
Tokens
Token Price
Token price remains the most straightforward application of a crypto alert. The price of an asset climbs or falls by a predefined percentage, and the crypto alert informs the investor. These can be especially useful to catch black swan event dips. An example: Russia’s invasion of Ukraine on the 24th of February sent shockwaves through the market, and Bitcoin saw an intraday movement of nearly 16%.
Fund Movement
Investors can create alerts that signal a significant movement of funds on the Ethereum blockchain; or any blockchain they desire. This crypto alert can be fine tuned to only pick up transfers from certain entities, such as important funds. Investors who create multiple fund movement smart alerts can also understand the general economic activity on-chain and where the big players transact.
Token Inflow
Token Inflow crypto alerts expose new tokens or renewed interest in old tokens. The Smart Money wallet label shines in this application. Investors select a max token age (if interested in new tokens) and set capital requirements for inflow within a period. If Smart Money wallets aggressively target a new token and it sees an influx of liquidity, chances are the token will make a decent move soon. The inverse remains true, and if Smart Money offloads, investors should follow suit. Token inflow represents the superior method for catching altcoins. Instead of crypto influencers shilling small caps and using their followers as exit liquidity, token inflow alerts allow investors to catch pumps in real time.
Conclusion
Smart Alerts represent a great tool in any investor’s toolkit. An overload of information reduces the agent’s capacity to make good decisions. Investors can pre-determine their criteria- the decision process- and then once investor creates the alerts, they have automated the process, and Nansen will provide actionable notifications.Nansen’s inclusion of wallet labels into its smart alerts puts them a grade above the rest, and the customization of alerts allows investors to explore possibilities deeply by layering criteria. Nansen’s on-chain analysis helps spot investment opportunities, and smart alerts ensure they are actioned as soon as possible- imperative for investors who want to stay ahead.
