To Find Alpha, you need to Know Alpha and to Know Alpha, you need to Read Alpha..
Discover the Secret behind the success of ALPHA callers and The Power of On-Chain Analysis in Crypto Market Insights 🧵
Discover the Secret behind the success of ALPHA callers and The Power of On-Chain Analysis in Crypto Market Insights 🧵
Why do they seem to know it all?
They are able to find the gems first, they invest before everyone else and they take profit at exactly the right moment and so you idolize them.
Well I'm here to burst the bubble, It's simply "ON-CHAIN ANALYSIS"
Let's dive deeper shall we ⬇️⤵️
They are able to find the gems first, they invest before everyone else and they take profit at exactly the right moment and so you idolize them.
Well I'm here to burst the bubble, It's simply "ON-CHAIN ANALYSIS"
Let's dive deeper shall we ⬇️⤵️
You probably already know that Blockchain networks like Bitcoin and Ethereum store transactional data in a public and transparent manner.
Every transaction has a hash which includes critical details such as sender and recipient addresses, amounts, timestamps, and fees right...
Every transaction has a hash which includes critical details such as sender and recipient addresses, amounts, timestamps, and fees right...
All of that information happens and is stored "On-chain"
Now understanding how to Access and Decode that information is called "On-chain Analysis" and it's the edge that these so-called callers have over you.
So what Exactly is On-chain Analysis..
Now understanding how to Access and Decode that information is called "On-chain Analysis" and it's the edge that these so-called callers have over you.
So what Exactly is On-chain Analysis..
On-chain analysis is the process of analyzing blockchain data to gain insights and have an edge in the cryptocurrency market.
It also shows us patterns, trends, and relationships hidden within this data and then we leverage on what we find (ALPHA) to make investment decisions..
It also shows us patterns, trends, and relationships hidden within this data and then we leverage on what we find (ALPHA) to make investment decisions..
We could also use it to just look into the overall health and activity levels of a blockchain network.
But what metrics are we looking for and what do we need to see?
But what metrics are we looking for and what do we need to see?
People carry out on-chain analysis for various reasons, and so the focus could be on different metrics or metrics relative to your goals.
But if you are just getting started, here are metrics you should really pay attention to when carrying out on-chain Analysis:
But if you are just getting started, here are metrics you should really pay attention to when carrying out on-chain Analysis:
Transaction volume: This metric is important as it tells you the overall activity on a blockchain network.
A high transaction volume can mean that there is a lot of interest in the network, and that could be a sign of bullish sentiment.
A high transaction volume can mean that there is a lot of interest in the network, and that could be a sign of bullish sentiment.
Active addresses: Wallet trackers use this a lot to track the number of unique addresses that have sent or received cryptocurrency on a blockchain network.
Large number of active addresses can indicate that there are more people using the network, which could also mean a Bull
Large number of active addresses can indicate that there are more people using the network, which could also mean a Bull
Hash rate: This measures the amount of computing power that is being used to secure a blockchain network.
Most people may ignore this to their ..... forgeting it is important in determining how secure and decentralized a network is.
Most people may ignore this to their ..... forgeting it is important in determining how secure and decentralized a network is.
Supply and demand: Of course you need to check Supply and Demand
High supply and low demand is not a very good sign for a token's price, low supply and high demand means that the price of the token may increase.
These are 4 main things you should start with.
High supply and low demand is not a very good sign for a token's price, low supply and high demand means that the price of the token may increase.
These are 4 main things you should start with.
But if you want to go in-depth and really find TOP SECRET ALPHA, then you these are what you need to do, ⬇️⤵️
It might take a while to carry out but trust me It's really worth it...
It might take a while to carry out but trust me It's really worth it...
Address/Wallet Tracking: This is when you begin to link multiple addresses to a single user or entity.
If you do this properly, you'll be able understand how fund flows, track user activities, and identify movements in the market long before others do.
If you do this properly, you'll be able understand how fund flows, track user activities, and identify movements in the market long before others do.
A closer look and you will understand how tokens are distributed and wealth is concentrated.
You could also spot Hacks and, reveal patterns like money laundering or the transfer of funds from exchanges to cold storage wallets.
But you could take it a step further...
You could also spot Hacks and, reveal patterns like money laundering or the transfer of funds from exchanges to cold storage wallets.
But you could take it a step further...
You become an ethical Hacker and participate in Bug bounties..
For blockchains supporting smart contracts, you can study the execution of contracts, interactions between addresses and contracts, and find code bugs or potential exploits.
Well this is just on a sidenote...
For blockchains supporting smart contracts, you can study the execution of contracts, interactions between addresses and contracts, and find code bugs or potential exploits.
Well this is just on a sidenote...
How To Get Started:
To get started, here are some of the most popular on-chain analysis tools you can begin with:
• Glassnode: Glassnode is a leading provider of on-chain analysis tools. It offers a variety of features, including data visualizations, charts, and reports.
To get started, here are some of the most popular on-chain analysis tools you can begin with:
• Glassnode: Glassnode is a leading provider of on-chain analysis tools. It offers a variety of features, including data visualizations, charts, and reports.
IntoTheBlock: IntoTheBlock is another popular provider of on-chain analysis tools. It offers a variety of features, including data visualizations, charts, and reports.
Nansen: Nansen is a blockchain analytics platform that provides on-chain data and insights for cryptocurrency investors.
• Dune Analytics: Dune Analytics is a decentralized analytics platform that allows users to build their own on-chain analysis dashboards.
• Dune Analytics: Dune Analytics is a decentralized analytics platform that allows users to build their own on-chain analysis dashboards.
Messari: Messari is a leading provider of cryptocurrency data and research. It offers a variety of features, including data visualizations, charts, and reports.
These are just a few of the many on-chain analysis tools that are available.
However, the best tool for you will depend on your preferences or rather on what you aim to find.
However, the best tool for you will depend on your preferences or rather on what you aim to find.
Although on-chain analysis is carried out for various reasons, the underlying reason is to gain an edge in the market
And this is what differentiates the winners from the losers.. Its a PVP game and those with the first movers advantage are more likely to win than those without.
And this is what differentiates the winners from the losers.. Its a PVP game and those with the first movers advantage are more likely to win than those without.
However you should understand that on-chain analysis is not perfect.
Factors like blockchain type, time period analyzed, and specific metrics tracked can affect its accuracy.
So make sure you combine other methods of research together with on-chain analysis.
Factors like blockchain type, time period analyzed, and specific metrics tracked can affect its accuracy.
So make sure you combine other methods of research together with on-chain analysis.
And that's it for this thread.
If you gained value, Please LIKE and RETWEET this thread and Follow me @rangercrypt Let's make Profit.
You can also join my personal telegram community for ALPHA.. link in my Bio.
And one Last thing.. ⬇️⤵️
If you gained value, Please LIKE and RETWEET this thread and Follow me @rangercrypt Let's make Profit.
You can also join my personal telegram community for ALPHA.. link in my Bio.
And one Last thing.. ⬇️⤵️
High valued people you should follow for insights
@Only1temmy
@vick_of_VEE
@crypthoem
@thedefiedge
@SamuelXeus
@SaraIdahosa
@_Quivira
@BlueofWeb3
@Retrickk_crypto
@CryptoKaduna
@kendrickNoble7
@_BillionAireSon
@CheskyDice
@DOLAK1NG
@DannyCrypt
@Jorale_soll
@Only1temmy
@vick_of_VEE
@crypthoem
@thedefiedge
@SamuelXeus
@SaraIdahosa
@_Quivira
@BlueofWeb3
@Retrickk_crypto
@CryptoKaduna
@kendrickNoble7
@_BillionAireSon
@CheskyDice
@DOLAK1NG
@DannyCrypt
@Jorale_soll
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