How to Track Whale Transactions in DeFi
Learn how to track whale transactions in DeFi to spot trends, minimize risks, and make informed trading decisions using advanced tools.
July 10, 2025
Wallet Finder
July 9, 2025
Looking to trade crypto but unsure whether to use DeFi or CeFi platforms? Here’s the quick answer:
| Feature | CeFi | DeFi |
|---|---|---|
| Asset Control | Third-party custody | Full user control |
| Ease of Use | Simple, user-friendly interfaces | Requires technical skills |
| Support | 24/7 customer service | No support for errors |
| Security Risks | Vulnerable to platform hacks | Exposed to smart contract bugs |
| Regulation | Strict KYC/AML compliance | No identity verification needed |
| Fees | Predictable but higher fees | Lower fees but can spike with congestion |
| Access | Restricted by regulations | Global and permissionless |
Key takeaway:
Let’s dive deeper into how these platforms work and which one suits your needs.
Understanding the key features of DeFi and CeFi platforms can help you decide which trading method suits your needs.
CeFi platforms operate through centralized systems. To get started, you’ll need to create an account and deposit funds, which the exchange holds on your behalf. Trades are facilitated using internal order books. Here’s how it works: you place a buy or sell order, the platform matches it with another user’s order, and the trade is executed. Your funds remain in the exchange’s wallets until you withdraw them. This centralized setup allows for conveniences like instant trades, advanced order options, and access to customer support if something goes wrong.
DeFi platforms take a different approach, relying on smart contracts to enable peer-to-peer trading. When you use a decentralized exchange like Uniswap, you interact with a liquidity pool instead of a traditional order book. Your wallet connects directly to the platform, giving you complete control over your funds throughout the process. There’s no need to deposit money into a third-party account - your assets stay in your wallet.
Let’s dive into how regulations play a role in shaping these platforms.
Regulations create a stark difference between CeFi and DeFi platforms. CeFi platforms in the U.S. must follow strict federal and state laws. This includes implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, which require you to verify your identity using government-issued documents and proof of address. They also face restrictions on which cryptocurrencies they can list and must comply with securities regulations. Depending on your state, some exchanges may even limit their services.
On the other hand, DeFi platforms provide open access with no identity verification or documentation requirements. All you need is a wallet address to start trading - no waiting periods or paperwork involved. However, this lack of regulation brings legal uncertainties. U.S. traders should remember that even on DeFi platforms, any trading profits or losses must still be reported for tax purposes.
Now, let’s explore how these platforms differ in terms of user experience.
CeFi platforms prioritize user-friendly designs. Take Coinbase, for example - it features an interface similar to online banking, making navigation simple. These platforms often include educational resources, responsive customer support, and mobile apps with tools like price alerts, portfolio tracking, and one-click trading. If you run into issues - whether it’s a failed transaction or a locked account - you can rely on customer support to assist you.
DeFi platforms, however, are less intuitive, especially for newcomers. Their interfaces often include technical jargon like "slippage tolerance", "gas fees", and "liquidity mining", which can be overwhelming for beginners. Tasks such as connecting wallets, approving smart contracts, or troubleshooting transaction errors can be challenging. And since there’s no dedicated customer support, any mistakes - like sending tokens to the wrong address - are yours to fix. Despite these challenges, DeFi platforms offer global accessibility and advanced tools like flash loans and yield farming, which appeal to experienced traders looking for sophisticated strategies.
Let’s break down the advantages and challenges of DeFi and CeFi to help you decide which aligns better with your needs.
Choosing between DeFi and CeFi ultimately depends on what matters most to you - whether it's ease of use and support or control and transparency. Both have unique strengths and risks that U.S. traders should weigh carefully.
CeFi platforms are user-friendly and offer immediate customer support. They often resemble traditional online banking systems, making them accessible even to beginners. Regulatory oversight, including KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols, adds a layer of protection for consumers. However, these conveniences come at a cost. By using CeFi, you’re entrusting a third party with custody of your funds, similar to depositing money in a bank. This reliance on centralized entities introduces risks - like the $1.4 billion loss suffered by Bybit in 2025 due to a custody system hack. CeFi platforms may also freeze accounts, restrict withdrawals, or limit access to certain cryptocurrencies based on regulatory or internal policies.
DeFi platforms, on the other hand, prioritize user control and transparency. With DeFi, you retain full custody of your funds, avoiding the counterparty risks associated with centralized platforms. Every transaction is recorded on the blockchain, ensuring a level of transparency that anyone can independently verify. DeFi also enables permissionless access - no identity verification or delays required.
"With DeFi, they would only need an internet connection, a bit of crypto, and an understanding of DeFi to start putting their money to work."
- Jonathan Hobbs, CFA
But this freedom comes with responsibilities. DeFi places the burden of security entirely on the user. Mistakes like sending tokens to the wrong address or falling victim to phishing scams can result in irreversible losses. Additionally, the technical knowledge required - understanding gas fees, slippage, and liquidity pools - can make DeFi intimidating for newcomers.
Here’s a quick comparison to summarize the trade-offs:
| Feature | CeFi Advantages | CeFi Disadvantages | DeFi Advantages | DeFi Disadvantages |
|---|---|---|---|---|
| Asset Control | Professional custody and security | No control over private keys | Full control of funds | Complete responsibility for security |
| User Support | 24/7 customer service | Subject to platform policies | No intermediary restrictions | No customer service for errors |
| Transparency | Regulated and audited | Limited internal visibility | Publicly verifiable transactions | Blockchain data can be complex |
| Accessibility | Easy to use | KYC/AML may restrict users | Global and open access | Requires technical skills |
| Security Risks | Regulatory safeguards | Vulnerable to hacks and fraud | Reduced counterparty risk | Exposed to smart contract bugs and exploits |
While DeFi often eliminates intermediaries, which can lower fees, network congestion can drive gas fees sky-high, making small trades impractical. CeFi, by contrast, typically offers faster execution and predictable fee structures, albeit with higher overall costs.
"Keep in mind that DeFi fees can actually be higher than CeFi ones."
- Jonathan Hobbs, CFA
Earning potential also differs significantly. DeFi platforms may provide higher returns through mechanisms like liquidity mining, yield farming, or early access to new tokens. However, these opportunities come with risks - such as impermanent loss or exposure to unaudited smart contracts. CeFi platforms, while offering more conservative options like staking rewards or interest accounts, generally deliver lower returns. Your choice should align with your risk tolerance and trading experience.
Regulation is another critical factor. CeFi platforms operate under strict federal and state guidelines, which can limit their offerings but provide legal clarity and consumer protections. DeFi, by contrast, operates in a less regulated space. While this offers greater flexibility, users must take responsibility for accurate tax reporting and be prepared for potential regulatory changes in the future.
As of September 2023, the then-Binance CEO estimated that DeFi trading volumes accounted for "somewhere between 5 to 10% of CeFi volumes", highlighting DeFi’s growing but still smaller market share.
Ultimately, your decision hinges on your priorities. CeFi is likely a better fit for beginners who value ease of use and support, while DeFi appeals to experienced traders seeking control and flexibility.
Performance data sheds light on critical metrics like trading volumes, user adoption, liquidity, and asset variety - essential factors for making smarter trading decisions.
When it comes to trading volumes, centralized finance (CeFi) platforms are still in the lead. For instance, Binbase processed an impressive $554 billion in spot market volume in March 2025, commanding a 57.7% share of the market. In contrast, Uniswap, a decentralized finance (DeFi) platform, managed $48.8 billion in trading volume over the same period. CeFi also leads in user engagement, with Binance reporting 29.5 million monthly active users, compared to Uniswap’s 14.4 million.
That said, DeFi platforms are gaining momentum. By May 2025, the total value locked (TVL) in DeFi protocols hit $112 billion, reflecting a 15% increase over the previous quarter. While liquidity on decentralized platforms tends to be fragmented, Uniswap stands out with over $4.16 billion locked in liquidity pools. Daily trading volumes often hover below $1 billion but have surged as high as $8.4 billion during major market events. DeFi also offers a broader range of assets - Uniswap provides access to 1,199 digital assets across 1,425 trading pairs, compared to Binance’s 401 assets and 1,397 pairs.
Revenue models differ sharply between CeFi and DeFi. Binance generated $48.8 billion in cumulative revenue over three years, while Uniswap earned $2.57 billion in the same timeframe. Uniswap’s lifetime revenue of $4.39 billion highlights how DeFi platforms primarily generate income through liquidity provider fees, rather than traditional trading commissions. Engagement in DeFi is also robust, with over 20 million unique wallet addresses interacting with the Ethereum network in December 2024.
Using these performance insights, you can craft strategies to boost your trading returns. One effective approach is a balanced allocation strategy. Experts often recommend splitting your portfolio with 40% in DeFi and 60% in CeFi. This mix allows you to tap into DeFi’s higher yield potential - often averaging 10%–12% or more - while leveraging the stability and ease of CeFi platforms.
Diversification across platforms is key. CeFi platforms are ideal for stable assets, offering predictable returns and minimizing risks like smart contract vulnerabilities. On the other hand, DeFi opportunities, such as liquidity pools, can yield significant rewards but often require more active management.
Technology can also play a big role in optimizing profits. AI-powered tools can automate trading decisions around the clock, giving you an edge in both CeFi and DeFi markets. However, these tools aren’t foolproof, so regular monitoring and a clear understanding of their limitations are essential.
For DeFi traders, tools like Wallet Finder.ai can significantly enhance results. This platform provides detailed insights into top-performing wallets, including profit and loss stats, historical performance graphs, and real-time alerts for major wallet activities via Telegram. You can even filter wallets by profitability, export blockchain data for offline analysis, and track your own performance by connecting personal wallets.
Staying up-to-date on technology is equally important. For example, Ethereum’s Dencun upgrade in 2024 reduced DeFi fees by 20%, making smaller trades more cost-effective. Security, however, remains a pressing concern. DeFi hacks led to $1.2 billion in losses in 2024, and CeFi platforms have also faced major breaches, such as the theft of 7,000 BTC in 2019.
The lines between DeFi and CeFi are beginning to blur, creating hybrid opportunities. Traditional financial institutions are increasingly adopting blockchain technology, while DeFi platforms are improving user interfaces by incorporating features from traditional finance. This convergence makes it easier to choose platforms that align with your trading goals.
When deciding on a trading platform, it’s essential to consider your trading experience, risk tolerance, and regulatory needs. As we've discussed earlier, balancing performance data with security measures is key. Whether you lean toward DeFi or CeFi platforms will depend on your unique situation - there’s no one-size-fits-all answer here.
Security is another major factor. CeFi platforms, while generally secure, can be vulnerable to hacks or insider fraud. On the other hand, DeFi platforms are exposed to risks like smart contract bugs and protocol exploits. Your comfort level with these risks should guide your choice.
Access requirements also differ significantly. CeFi platforms often require KYC approval and may have jurisdiction-based restrictions. In contrast, DeFi platforms are accessible to anyone with a crypto wallet and internet connection, though they operate in a more ambiguous legal space. For U.S. traders, CeFi platforms often provide greater regulatory clarity.
No matter your trading level, integrating advanced analytics can help refine your platform strategy.
To make smarter choices, tools like Wallet Finder.ai can significantly enhance your trading outcomes. This platform uses data-driven analysis to help you optimize strategies and select the right trading environment.
Wallet Finder.ai tracks top-performing crypto wallets, offering detailed P&L statistics to identify successful trading patterns. With visual graphs and historical performance charts, you can uncover strategies that have worked in real market scenarios.
The platform’s advanced filtering tools let you sort wallets by metrics like profitability, win streaks, and consistency. For example, if you notice high-performing wallets frequently interacting with specific DeFi protocols, you might uncover opportunities that CeFi platforms don’t offer.
Another standout feature is the real-time alert system via Telegram, which keeps you updated on wallet activities and market movements in both DeFi and CeFi ecosystems. This is particularly valuable given that DeFi trading volumes currently account for only 5–10% of CeFi volumes. These smaller markets can present unique opportunities, but they require quick action.
Wallet Finder.ai also allows you to connect your personal wallets for performance tracking, giving you a unified view of your trading results. Its data export feature is particularly useful for offline analysis, whether for refining strategies or meeting IRS cryptocurrency reporting requirements.
Whether you're just starting out or are a seasoned trader, Wallet Finder.ai provides the insights you need to make informed decisions. By bridging the transparency of DeFi with the structured operations of CeFi, it empowers you to allocate your trading capital more effectively.
DeFi and CeFi trading platforms cater to different types of traders, depending on factors like risk tolerance, technical know-how, and trading objectives. If you're drawn to higher risks and more complex strategies, DeFi offers greater control, transparency, and the potential for significant returns.
For those just starting out or who prefer a safer approach, CeFi platforms are an excellent choice. They provide the stability and support necessary to navigate the often-intimidating world of cryptocurrency trading. Platforms like Binance, which boasted 30 million active users in 2025, combine user-friendly interfaces with regulatory compliance, offering a sense of security.
On the other hand, seasoned traders looking to tap into DeFi's potential might find its growth story compelling. Consider Uniswap, which handles $1.5 billion in daily trading volume and over $106 billion monthly, showcasing the immense opportunities within decentralized finance.
CeFi platforms remain a strong option for those who value ease of use, regulatory safeguards, and institutional-grade infrastructure. They appeal to traders who prefer a more structured and guided trading experience.
For a well-rounded strategy, you might consider splitting your investments - allocating about 60% to CeFi for its stability and 40% to DeFi to capitalize on its growth potential.
However, security should remain a top priority for both platforms. DeFi's risks are evident, with $953 million lost to smart contract vulnerabilities in 2024 alone. Meanwhile, CeFi's custodial nature also comes with its own set of risks, emphasizing the importance of choosing regulated platforms. For added safety, hardware wallets are a must for DeFi users, while CeFi traders should carefully evaluate the reputation and compliance of their chosen platforms.
Tools like Wallet Finder.ai can enhance your strategy by offering detailed, data-driven insights. Whether you're comparing top-performing DeFi wallets or monitoring your CeFi portfolio, having access to comprehensive analytics can help you make smarter decisions about where to allocate your capital.
The cryptocurrency market is evolving fast. DeFi's total value locked in decentralized exchanges surged by 60% in 2024, reaching $25 billion by December. As these ecosystems grow and regulatory landscapes become clearer, your platform choice should reflect not only your current expertise but also your readiness to adapt to future changes. Over time, your approach can evolve alongside the market and your own trading skills.
DeFi platforms bring their own set of risks, including smart contract flaws, exploits due to platform interoperability, and fraudulent schemes that leverage advanced technologies. If not addressed, these risks can lead to major financial losses.
To safeguard your assets, stick to platforms that have undergone thorough audits and always perform your own research before interacting with any DeFi protocol. Make it a habit to revoke unused token approvals, use a hardware wallet for secure storage, and stay informed about new threats in the DeFi ecosystem. Be vigilant about protecting sensitive information and watch out for phishing scams. By following these steps, you can reduce your vulnerability and navigate DeFi platforms more safely.
Regulations governing CeFi platforms in the United States, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, aim to bolster security by deterring fraud and illegal activities. Oversight from agencies like the SEC and CFTC further strengthens user protection by ensuring compliance and accountability.
That said, these rules can influence your trading experience in several ways. On the plus side, they foster trust and transparency. On the flip side, they might restrict privacy and reduce flexibility. Additionally, adhering to these regulations can sometimes result in higher fees or slower account setup. Weighing these factors carefully will help you determine if CeFi is the right fit for your trading goals.
To strike the right balance between DeFi and CeFi investments, diversification is key. Spread your funds across a mix of assets to manage risk effectively. For a strong base, allocate a portion of your portfolio to stablecoins or high-liquidity assets like ETH. On the DeFi side, explore strategies like yield farming to generate passive income. Meanwhile, CeFi options such as staking or traditional trading can provide a steadier, more predictable return.
It’s also wise to spread your investments across multiple platforms. This reduces the risk of being overly reliant on any single platform. Keep a close eye on performance metrics and stay ready to adjust your approach as market conditions shift. With this hands-on strategy, you can aim to optimize profits while keeping risks in check.
"I've tried the beta version of Walletfinder.ai extensively and I was blown away by how you can filter through the data, and the massive profitable wallets available in the filter presets, unbelievably valuable for any trader or copy trader. This is unfair advantage."
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Pablo Massa
Experienced DeFi Trader
Smarter trades, made simple.
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