In the modern Web3 segment, there are plenty of analytical tools designed to help traders navigate through the challenges of the crypto market. From Telegram bots on RPC nodes to automated X accounts, they can be useful in checking social media sentiment, whale behavior, large mints and burns.
At the same time, one-stop on-chain analysis platforms CryptoQuant remains a service of choice for thousands of traders, researchers and investors.
Image by CryptoQuant
It offers all necessary on-chain data tracking, feature-rich customizable dashboards, and various free and paid packages while its thriving community is publishing and discussing most important insights on what is happening right now in crypto and blockchain.
In this brief review, we’re going to cover what is special about CryptoQuant, what it offers to analysts and traders, and how to benefit from using CryptoQuant regardless of previous experience with crypto.
What is CryptoQuant, a Swiss knife for crypto analysts: Highlights
Launched in early 2018, Seoul-headquartered CryptoQuant is a flagship on-chain analysis platform in crypto.
- CryptoQuant is a one-stop service for on-chain analysis for Bitcoin (BTC) and a number of major altcoins;
- Using hundreds of indicators, it provides users with insights on most crucial market processes, allowing to make trading decisions in a more data-driven way;
- Through its automated tools, CryptoQuant, among others, tracks the profitability of Bitcoins (BTC) owned by different categories of investors (both short-term and long-term ones), the moving price metrics, miner flows, crypto funds performance, and so on;
- Thanks to clear and well-designed UX, even newcomers to crypto are able to leverage CryptoQuant data for some indicators;
- The platform publishes research newsletters while its community best analysts (verified authors) can share valuable insights in the Quicktake module.
Thanks to this powerful combination of instruments, CryptoQuant was among the few research groups to predict the collapses of Terra/Luna and FTX/Alameda ecosystems in 2022.
What is on-chain analysis?
On-chain analysis in crypto refers to the study of blockchain data, such as transfers, wallet activities, and smart contract interactions, token mint and burns to gain insights into market trends, investor behavior, and asset flows.
By analyzing metrics like transaction volume, addresses holding certain amounts of coins, and exchange inflows/outflows, on-chain analysis helps traders and investors assess the health and direction of a cryptocurrency network. This data is publicly available on blockchains, offering transparency and a powerful tool for making informed investment decisions.
On-chain analysis is one of the most impressive aspects of crypto uniqueness: thanks to the transparent nature, blockchains provide us with volumes of information that can hardly be imagined in the Web2 world.
Bitcoin price prediction via on-chain analysis: How to start?
While on-chain analysis is a powerful tool for market research, some of its metrics can be challenging to understand for newcomers.
As such, trying to start with the most understandable ones might be a smart bet. For instance, the “Bitcoin Supply in Profit” metric demonstrates how many Bitcoins would bring profit to their owners if sold at going prices.
Simply put, when Bitcoin (BTC) is near all-time high, almost 100% Bitcoins (BTC) are profitable as their owners obviously buy it cheaper. When Bitcoin (BTC) is plunging below $50,000, all who bought digital gold over this mark are underwater.
Image by CryptoQuant
What does this mean for us? Once the metric reaches highs, some investors might be interested in taking profits, so, every previous ATH is a dangerous zone with increased volatility.
Introducing CryptoQuant, a top-tier on-chain data platform for crypto
CryptoQuant, a pioneering on-chain analytics platform, provides the crypto community with valuable data insights on Bitcoin (BTC) and hundreds of altcoins.
CryptoQuant: Basics
On-chain analytics heavyweight CryptoQuant was founded in 2018 by Ki Young Ju. The platform has quickly established itself as a trusted source for both institutional and retail investors looking for actionable insights into the crypto markets. Headquartered in Seoul, South Korea, CryptoQuant has a strong global presence, serving clients worldwide with high-quality data and analytics tools.
In other words, through its powerful ecosystem of APIs and other automated tools, CryptoQuant harvests data about what happens in blockchains right now: transfers between accounts, blocks added, money sent to exchanges or withdrawn, liquidity injected/removed from exchange-traded funds, and many others.
These data are sufficient for traders to upgrade their level of understanding of crypto market processes, make data-driven investment decisions and enhance the profitability of existing strategies.
CryptoQuant: How to use it
For every cryptocurrency supported, CryptoQuant offers numerous analytical tools designed to get the insights on its potential dynamics in future. Let’s check the most crucial ones for Bitcoin (BTC), the largest cryptocurrency.
Image by CryptoQuant
To provide the big picture on where Bitcoin (BTC) is right now, CryptoQuant demonstrates seven groups of indicators.
- Exchange. Tracks the reserves and flows of centralized crypto exchanges like Binance or Bybit;
- Miner. Tracks the profitability of Bitcoin (BTC) Proof-of-Work hash mining and some other metrics;
- On-Chain Indicators. This section refers to on-chain analysis in a strict sense: it demonstrates the metrics of on-chain BTC wallets: profitability, “age” of coins, realized PnL, and so on;
- Derivatives. This segment tracks the critical metrics for Bitcoin contracts sphere: funding rate on futures CEXes and cumulative Open Interest (OI);
- Sentiment. This section shows some ways to track the positive/negative sentiment of investors in the U.S. and Korea based on their willingness to purchase BTC at bigger prices compared to other world (so called Coinbase Premium and Korea Premium (also “Kimchi Premium”) indicators).
- Technicals. Tech analysis section tracks the performance of critical technical analysis indicators known to every trader.
- Comments by Verified Authors. In this section, CryptoQuant’s best community authors share their thoughts on market events and trends.
With this powerful combination of tools, studying the basics of on-chain analysis becomes easier than ever before even for traders with no previous experience in crypto markets.
CryptoQuant: Use-cases in Web3
Feature-rich analytical dashboards of CryptoQuant can be of use for different categories of cryptocurrency community actors.
CryptoQuant for traders
Both day traders and “diamond hand” investors will find something suitable on CryptoQuant. By tracking exchange outflows, market sentiment, on-chain metrics, traders can adjust their strategies to make them more optimized.
CryptoQuant for researchers
For blockchain segment scholars and researchers, CryptoQuant can be useful in tracking long–term processes, checking and backtesting the hypotheses in spheres of blockchain utilization and economy.
CryptoQuant for journalists
Last but not the least, journalists from crypto and blockchain media outlets can always find the hottest topics in crypto by checking CryptoQuant dashboards and reading the insights from its team and community.
Closing thoughts: What is special about CryptoQuant
Since 2018, CryptoQuant is delivering an alpha on on-chain processes in Bitcoin (BTC) and all major altcoins. Its powerful tech instruments retrieve the data from blockchains and visualize them in hundreds of dashboards.
CryptoQuant is a leading on-chain analytical platform for newcomers and pros thanks to its customizability, clear UX/UI, unmatched number of metrics tracked, and passionate community around the product.
