The crypto space moves quickly, and staying ahead of market trends to make informed decisions can give you a much-needed edge. This is why many crypto businesses have developed analytics tools to help traders navigate the space.
In this article, we’ll explore some of the latest and most advanced tools you can use to identify powerful insights and make informed trading decisions.
Why do you need analytical tools to trade crypto?
Good crypto trading 101 is to analyze the market and find the right opportunity to place an order. As part of this process, analytical tools can help you process data and gain a comprehensive understanding of the market, helping you develop an informed trading strategy that maximizes opportunity while minimizing risk.
Most cryptanalysis tools can be classified into one of the following categories:
Let’s take a look at the popular tools in each category.
Technical analysis tools
Technical analysis tools help predict the future price movements of cryptocurrencies based on historical price data and volume. This technical data is represented in a chart where trading opportunities can be identified based on trading patterns. However, technical analysis is based on historical data and therefore does not guarantee future performance.
TradingView
TradingView is the most popular charting platform and an essential tool for crypto trading. OKX has partnered with TradingView to enable our users to study and interact with charts from the trading console. However, you can go a step further and use TradingView to access more tools and data. This includes custom scripts, viewing multiple charts at the same time, price alerts and more.
Price: A free version is available along with a feature-rich paid plan with a fee of up to $599 per year. The various paid plans provide access to additional charts, indicators and alerts.
Advantages:
TradingView is an industry-standard charting tool that provides simple access to accurate and sophisticated data.
Accessible from anywhere on both desktop and mobile platforms.
Supports custom scripts for advanced users to develop their own trading strategies.
Disadvantages:
The free plan is limited, but many merchants upgrade to a paid plan for advanced tools.
The paid plans can be relatively more expensive compared to competing platforms. However, there are very few alternatives to TradingView.
Cannot trade directly from TradingView.
Coinigy
Coinigy is a popular cloud-based charting and trading platform that focuses on cryptocurrency markets. The platform integrates real-time access to data from 45 different cryptocurrency exchanges, with trading and other portfolio management tools available. Traders can conveniently view charts, place trades, control positions and manage their portfolios across multiple exchanges on one single platform.
Price: There is no free plan. A 7-day trial is available, after which you’ll pay $18.66 for the ‘pro’ plan.
Advantages:
Disadvantages:
No free plan. Only a 7-day free trial.
Supports 45 major crypto exchanges, which means not all exchanges are supported.
Fundamental analysis tools
A successful trader uses both technical and fundamental analysis to trade. Fundamental analysis is used to determine the intrinsic value of various cryptocurrencies before trading them. Moreover, the crypto market is very news sensitive. Positive coverage of a cryptocurrency can have an immediate positive impact on its price, and vice versa. Therefore, it is important for traders to use fundamental analysis and stay informed about the market while looking for trading opportunities.
OKX Learn
OKX Learn is a comprehensive educational platform designed to help you grow your crypto knowledge. The platform is regularly updated with the latest updates on market analysis, tokens, NFTs and blockchain protocols. This is a great starting point for both beginners and experienced traders looking for fundamental analysis.
For crypto newbies, OKX Learn offers an extensive catalog of articles on everything they want to know as they get started. At the same time, there is enough content for experienced traders to learn about new and upcoming protocols and tokens.
Price: Free
Advantages:
Disadvantages:
CoinMarketCap
CoinMarketCap is a leading information platform that provides price data from most cryptocurrency exchanges. It also provides real-time market data on market cap, volume, historical price trends, supply and more, for thousands of cryptocurrencies. This information is extremely important for performing fundamental analysis of any cryptocurrency.
CoinMarketCap also has additional useful information, such as links to the coin’s official social channels, official website, white paper, contract address and more. The platform also compiles real-time news, making it convenient to filter out updates specific to the cryptocurrency you’re researching.
Price: Free
Advantages:
Comprehensive market data with a wealth of information.
Real-time news filtered by cryptocurrencies.
Quick access to official links to projects.
Disadvantages:
CoinMarketCap is a good starting point for fundamental analysis, but it cannot have an in-depth analysis.
Information on low cap coins can be inaccurate as the data is sometimes self-reported.
knife
Messari is a well-known crypto analysis and research platform that provides in-depth reports on cryptocurrencies. The platform contains detailed insights on asset profiles, regulatory frameworks, trends, technical developments, macroeconomic insights, and more.
Messari also regularly reports on various projects and reviews their tokenomics, roadmaps and the team. The crypto market is often opaque, and this kind of research can speed up your fundamental analysis.
Price: Start with a free plan that provides basic reports. More sophisticated insights require an $899 per year subscription.
Advantages:
Comprehensive cryptocurrency research and reporting, including information that is often hard to find.
High quality research.
Access to real-time curated news and advanced screening tools.
Disadvantages:
The price of the pro plan can be expensive for some merchants.
All the research is done by hand. Therefore, it is impossible for Messari to cover all markets.
On-chain analysis tools
On-chain analytics tools provide real-time insights into on-chain crypto activity. The blockchain-based technology offers incredible transparency that is not available in other markets. Traders can make well-informed decisions by observing transaction data, wallet addresses, smart contract interactions and DeFi interactions related to other market participants. On-chain analytics tools help to simplify this data on a single platform.
Dune
Dune is a powerful platform that allows you to create custom dashboards by querying the chain data. It supports Ethereum and other popular blockchain platforms.
Creating a custom dashboard requires knowledge of structured query language (SQL). However, Dune hosts thousands of community-created dashboards that are free to use. You can mix and create dashboards at a granular level with access to multiple blockchain data points.
Price: It’s free to access community-created dashboards and to create basic dashboards. You only need to choose a paid plan if you want to create advanced dashboards that query thousands of data points.
Advantages:
Thousands of free-to-use dashboards created by the community.
A powerful query tool to create dashboards on any blockchain data you want.
The free plan is very generous for most merchants.
Disadvantages:
Nansen
Nansen is another popular on-chain analysis tool. Unlike Dune, Nansen has a variety of pre-built dashboards that cater to cryptocurrency traders. It focuses on Ethereum and other Ethereum Virtual Machine chains. Nansen provides an easy visual representation of complex blockchain data, with alerts, watchlists and wallet labeling.
Price: A free version is available. However, you need the paid “pioneer” plan for most features, which costs $1,200 annually.
Advantages:
Easy to use, intuitive dashboards with abundant information for both beginners and experienced traders.
Wallet tagging helps identify trading activities of whales and exchanges.
Real-time on-chain alerts.
Disadvantages:
Sentiment analysis tools
Sentiment analysis tools help traders gauge the overall sentiment of the market with signals from various sources. Sentiment analysis is not quantifiable like technical analysis, so many traders use different sources to get a rounded and, in theory, more accurate perspective on market sentiment.
Google Trends
Google Trends is a popular free tool for measuring public interest in trending topics and cryptocurrencies. You can type in the name of a cryptocurrency and Google Trends will show you the level of interest in the asset on a scale of 1 to 100. You can also use it to look for interest between categories like NFTs and memecoins .
Social media platforms
Social media platforms like X, Telegram and Discord are rich sources of real-time sentiment analysis. By tracking the hashtags and conversations happening on cryptocurrencies, you can determine whether the sentiment is positive or negative. However, there is also a lot of noise, irrelevant information, bias and bot-engineered content. So it can take some time to dig through the chatter and find useful insights. Look for authoritative voices on each platform and follow them for updates.
Perpetual term funding rates
Perpetual futures are a unique type of futures contract without an expiration date. Exchanges use a concept called funding rate to align the price of the futures contract with the market. When the funding rate is positive, long positions pay off short positions, indicating bullish market sentiment. Likewise, when the funding rate is negative, short positions pay off long positions, indicating that market sentiment is bearish.
The last word
Crypto analytics tools are important for any type of trader as they are a valuable assistant while navigating the volatility and unpredictability of crypto trading. Many day traders prefer to spend more time applying technical analysis tools. Meanwhile, those who take a longer-term view typically focus more on fundamental analysis tools.
Whether you are a beginner or an experienced trader, crypto analysis tools are essential. We always recommend that you complete due diligence before starting to trade, and this means understanding the various analytical tools available which are the right way to find the right mix to support your trading strategy and manage risk.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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