- Cryptocurrencies have made their mark on global investors. And with advancements in tech, many crypto analysis tools have emerged, which help investors make better decisions.
- With crypto analysis tools, you can research and analyze an asset before investing, evaluate investor sentiments to predict market movements and make well informed decisions.
- Some useful crypto analysis tools are Glassnode, Coinigy, CryptoView, Coin Metrics, CoinMarketCal, Cryptowat.ch, DeFiLlama, Nansen, Santiment, and LunarCrush.
It has been over a decade since the launch of cryptocurrencies. And without a doubt, they have made their mark on global investors. Its volatile nature drives investors to leverage this digital asset and yield profits. But that same volatility puts them at risk of losing their capital too.
With advancements in tech, many crypto analysis tools have emerged. These aid investors in making better investment decisions. If you are curious about how you can use these tools to your advantage, this article is for you.
Why are Crypto Analysis Tools Necessary for Investors?
Crypto analysis tools refer to the technical and fundamental instruments that help traders and investors get an idea of price movements, on-chain data, volatility, volume, etc. To trade or invest in cryptos, you need an understanding of these parameters, along with the overall market and tools just make it easy and accessible.
Here are a few benefits you can get from using crypto research tools.
1. You can make informed decisions
Crypto tools include technical instruments, on-chain data analysis instruments, etc. On-chain data refers to metrics like volume of transactions per day, total value of traded tokens per day, and other network-related data. These help you understand the network activity of a crypto.
Crypto analysis tools provide you with graphs and data on the same to make informed decisions. You don’t have to look at multiple sources to conclude a decision. Also, because you consider multiple aspects before investing, your decisions are likely to turn a profit.
2. Research and analysis-backed investments
Getting crucial information on crypto tokens’ value, transaction volume, market share, and more gives you an upper hand when dealing with them. You can perform technical and fundamental analysis using these data sets. You can also choose the ideal time to invest and exit the market. Your market moves are now research/analysis backed and not based on speculations.
By the way, Coin Sets are also research-backed baskets of cryptocurrencies for you to invest in.
3. Social sentiment parameters come in handy in avoiding market noise
Not just technical metrics and numbers, investor sentiments also significantly impact cryptos. For example, a tweet by an influencer may lead to investors going gaga over a certain token. Thus, keeping a tab on such factors becomes crucial. And crypto analysis tools can make this job easier. You can avoid decisions based on temporary market noise and rumors using analysis tools.
10 Essential Crypto Analysis Tools for All Investors
Now that you know how crypto analysis tools can help you invest efficiently, let’s move toward the tools available.
Best known for: Crypto data collection and global intelligence network
Glassnode is an on-chain data and intelligence platform. It combines data from different sources for blockchains. It also helps investors to know metrics on transaction data, wallet holdings, miner data, and a lot more from the dashboard itself.
Best known for: Digital asset trading platform with access to 20+ exchanges
Coinigy was launched in 2014. It maps crypto charts for more than 45 crypto exchanges to find arbitrage opportunities. It provides a 30-day free trial to test compatibility. After the trial, you have to pay a $15 fee monthly. Other than that, there are no hidden costs or commission charges.
Best known for: The best cryptocurrency research tool and portfolio manager
CryptoView allows users to track cryptocurrencies across cold storage, exchange platforms, and third-party wallets. This is a tool that provides real-time data and simplified trading strategies. It allows you to operate through multiple trading accounts across several trading exchanges.
4. Coin Metrics
Best known for: Leading provider of financial intelligence related to crypto
Coinmetrics is a crypto market data analysis tool that can be used for both off-chain and on-chain research. The main services of Coin Metrics include data on different indices, price reference rates, market visualization tools, etc. It also allows you to track Twitter feeds to track market sentiment.
Best known for: Leading economic calendar for reliable cryptocurrency news
This tool is the best for tracking crypto news and updates. It keeps you updated about upcoming events related to different crypto. It’s a community-driven social media platform where users provide insights and research-driven news on different crypto events. You’ll get notifications each time news pops up so you can act fast and access events directly in the app.
Best known for: A popular trading and charting terminal for cryptocurrency markets
It is one of the best portfolio trackers with a user-friendly interface. CryptoWat.ch supports your trading practices for several exchanges, making it a unified platform for trading. It has unique features like liquidity metrics and tweets embedding onto charts. It also has a premium version that comes with a simple web-based interface.
DeFiLlama is one of the most prominent Total Value Locked (TVL) providers, which you can use for DeFi protocols. TVL is used to evaluate a DeFi protocol as it represents interest from investors. This platform aims to provide accurate and transparent information on the same to investors. What’s more, it acts as a one-stop protocol where users can keep track of all the popular blockchains and DeFi protocols.
Best known for: Leading blockchain analytics platform
Nansen is an AI-based algorithm platform. It combines on-chain data and a database of information of millions of wallet labels. Its core values are transparency and accuracy. And its label wallets include user submissions, heuristics and algorithms, smart contract parsing and analysis, and investigations and research.
Best known for: Best market behavior analyzing platform
It is the one-stop market behavior and analysis tool for cryptocurrencies. Santiment helps you identify and analyze market behavior to make the best crypto investment decisions. This tool helps you not to rely solely on prices and also leverage custom trading strategies based on on-chain data and social developments.
Best known for: Best social media network analyzer
This is a platform that collects data from social media platforms to understand market activities and user sentiment. LunarCrush lets you know which influencers have a pull on the market movement. And it lets you track their activity on social media to understand market ups and downs.
Before you dive into the crypto space, you need to put on your armor– crypto analysis tools. These research tools make your work easier by providing you with ready-to-act analysis and strategies.
1. How to choose the best crypto analysis platform?
The best way to choose a crypto analysis tool is to read the reviews available on different mediums such as Reddit or Twitter. You can compare these reviews along with statistics of the platform, accuracy, and available analysis options to make an informed decision. Pricing is also a factor in choosing the best crypto analysis platform.
2. How do you analyze cryptocurrency?
There are many ways to analyze a cryptocurrency. These include technical and fundamental analysis that helps you read market data and interpret the same to know the ideal time to invest and sell your positions.
3. Does crypto technical analysis work?
The answer is a big yes. You just need to develop an understanding of how crypto and its analysis works to successfully implement the same. There are an array of crypto analysis tools available online that you can use to make your task easier and reap the benefits.