Insider trading is buying or selling off a publicly traded stock(most cases) by anyone that has non-public information which could potential move the price.
Insider trading is used on a daily basis not only in stocks but also in crypto and in this case in the NFT space. People that have access to information not yet public have the upper hand and make the most amount of profit since they usually get an entry the quickest. It is extremely powerful but also not easy to get.
Have you ever seen a floor randomly pump by a whale 1 hour before a major announcement that sent the specific project flying? Well that was probably due to someone having information not yet public which is considered insider trading.
How do I get access to insider trading?
Well for the most part, the people with a big social presence, a following or a big influence in the space get access to it. Furthermore people that work and are highly respected in the space tend to get access to a lot of non-public information too. Lastly big investors(VCs), Staff and Partnerships tend to also get access to non-public information.
For any normal person that does not fall under any of these categories, there is still a way to get some information that others would wish to have, and that Is through working for different projects and getting your name out there.
Wether it’s by being a mod, a community manager, alpha caller or anything else, working for big projects usually comes with non-public information as long as you are trust worthy enough which you become by proving yourself. While this “insider” information might not be as rewarding or big as what other traders get, it can still give you an edge on the market that other normal traders do not have.
Can I leverage insider trading even If I don’t have any?
Yes, while it is quite difficult to spot it and it could be a hit or miss, you can get good entries before the news is dropped by following what big wallets do, what influencers buy and sweep and also what project founders do, if the people that fall under these categories tend to get amazing entries for projects right before a major announcement on a consistent basis, that means they probably have non-public information.
While you might not have access to the information itself, you can speculate and track your way to finding people that do have insider information.