How to make money trading into exchange deposits!

By Jakub W | Blockchain Mysteries | 24 Apr 2019

$0.48 tipped

Listen the title could be little clickbaity, but in the essence is truth, you can do little or moderate amount of money trading into deposits. First and foremost low volume is the key, you dont want too much interference in your trading, with higher volume the deposits will disapear.

Second I recommend trading only few tokens, so you can know perfecly the price how thin is order book etc.

Third I will be showing screenshots from my telegram bot, but they're for exhibition, you can do it manually with etherscan, twitter bot, exchange view (or any view where you can see sell orders) and manual adding up historical trades.

Let's split up exchange deposits into 3 types, bearish one, bullish one and unknown. Of course correlation does not mean causation, so please consider these groups on case by case basis and analysis for each deposit has to be made by human.

Bearish deposit

Bearish one is easy to identify on low volume market immediately, after it hits the market you see the surge in sold tokens for market price, viz image. This is pretty straightforward because you can see it in market.  

Money Tip: You can flag some addresses ICO investors, which are selling their newly unlocked tokens immediately, you can then sell before them and buy into their deposit with lower profit and low risk. Personally my favorite you'll get more tokens and after bit of pull back you can sell them, idea is to chatch them before they sell.


Bullish deposit

Bullish deposit is deposit which results in bigger number of sell orders, (deposit size > new sell orders) what this indicate is that depositer wants to sell above market price. Between these deposits is the fabled insider information deposit, which everyone thinks they can, but it rarely works.

Money Tip: Do NOT assume insider information, its hard and rarely occur!! 


You can scope the historical orders and buy and create sell order before the new if profitable, but it's highly risky.

Neutral deposit

Neutral deposit has not yet been sold, or has not been added up to the sell orders above market price. This fact could mean they can be sold anytime which would result in downwards movement.

Money Tip: Carefull with your open orders could get wrecked by it, I would recommend keeping track of them, maybe even do some reasearch which address sent them to Exchange. But they have possibility to became bearish deposits which can bring you some new tokens, if you're lucky and orderbook is slim.




You get notification about DEPOSIT of 500,000 X_TOKEN , you will look into the past if the address sold before, easiest way find the time of last deposit and find the candles on tradingview if theres any correlation.

If yes, now is time to look onto orderbook if buy orderbook is slim its relatively low risk, you can sell before them and setup your new buy order lower with calculation order book - size of deposit, I'm always bit skeptical so I have like 20% reserve.


Here you can see the order book is slim, if you are sure about this depositer you can sell at marke to 686 sats, and create buy order at after 671.

For like 2.4%, may not seem like much but its for sake of example. You need to know if the reward is high enough for you to trade it.


Interesting finding 

Most of the deposit are following the price trend, which means after price movement usually upwards we can see more deposits.


You should take this article with grain of salt, personally I still would bet you will have better chance trading into deposits than following twitter trader gurus or doubtful information. Hope you learn something new 

Jakub W
Jakub W

Speculative/Educative view on ETH / ERC-20 token transferring and trading.

Blockchain Mysteries
Blockchain Mysteries

Series of videos speculating and explaining cryptocurrency movements on blockchain. Youtube link:

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