It goes without saying that the crypto market is the most recent financial market to have emerged on the horizon, along with forex and stock markets. The opportunities that the crypto market presents you with are limitless; there are so many elements to invest money into; first of all, you have got cryptocurrencies that are digital assets that you can take for either active trading or for staking purposes to receive rewards from the definitive blockchain environments for the sake of you participating.
On the other hand, you have non-fungible tokens that are a digital depiction of art that is divided into little bits and chunks that are sold separately; again, in a blockchain environment, exchange-traded funds are a third type of entity that you can engage your money into and so on, so there are various other options to make money from the crypto market. But how compatible you are with the market itself and the volatility that it proposes would be measured from your overall skill set combined with what kind of exposure you have had to the market itself.
If you are a complete beginner, then the crypto market, friendly speaking is not the place for you; you should start with others such as stock or forex markets to gain some exposure and experience so that you are finally able to trade within the crypto market itself.
But if you don’t want to back out on this great opportunity, then you should seriously entertain the possibility of running the crypto data in real-time to drive insights from it so that you are not going in there empty-handed and have some kind of ammunition that you can use against the volatility aspects of the crypto market.
It can be extremely risky investing your hard-earned money into cryptocurrencies because of the volatility factor; suppose you have invested in Bitcoin today, and it was soaring high amid a bullish market, but then the very next day, it was dropping so fast that it didn’t only punch a hole through your investment but also gave you a life lesson to stay away from cryptocurrencies.
If you take every bit of loss that you have endured within the crypto market to heart, then you are not going to be able to sustain yourself in this particularly challenging space for long. It is necessary to have some crypto research tools at your hand if you want to drive insights from the data and have a bit more knowledge about what kind of trade you are getting yourself into and what could be its probable turn in the near future.
You can use the data to be able to examine the performance of a certain asset within the crypto market over a dedicated period of time which will give you a clearer picture of how you should approach it or just how much money you should invest in that particular asset.
This allows you to grow your investment portfolio by leaps and bounds while at the same time being able to dodge the volatility factor of the crypto market. These tools are somewhat complex to use, especially if you are a complete beginner and don’t have any knowledge when it comes to the working of these elements, but with practice and time, it does get better, and you will definitely be able to turn in more profit than you originally were diving into the crypto space with a tight black strap wielded around your eyes.
On-chain Data Providers
There are various blockchain data providers out there which provide you with the most recent on-chain data for particular cryptocurrencies or financial assets within the crypto space; these intelligence platforms are various in number; some of the examples include Messari, Glassnode, and Santiment. These channels provide the investors with elementary insights into dedicated cryptocurrencies, so they have a clear-cut picture drawn before their eyes when striving to approach a particular financial element.
These tools usually take data from various sources, including various blockchain networks out there and estimate various variables of those, including wallet addresses, transaction details, mining rewards, transactional values, fees that those particular blockchain elements are charging, along with other relevant information for that particular asset into smart contracts. On-chain data analysis does provide you with a different look into the patterns of trade for that particular asset, times when it was at its best, and times when it was behaving like a candle flame put into the path of storming wind.
The final results that you get are extremely comprehensive, which means that they are not only going to cover the trading patterns for these digital assets but also other factors or trading patterns for those assets would be revealed, which will give you a complete look into that particular cryptocurrency.
If nothing comes to your aid from on-chain data analysis, then one thing most definitely will, and that is the fact that you will have great insight from on-chain data analysis for whatever cryptocurrency you are using it on, which can be used to sharpen your trade and present you with more incredible returns on the investment than you were seeing before this approach.
Social Metric Trackers
When it comes to the conventional financial markets, they are always communicating their earning reports along with various other data that is being telecasted on the news or other social media channels. Because it is a highly regulated place, and these kinds of reports are the general go-to procedures for the regulatory authorities involved which is why you would get into deep insights and other informational data from the stock and forex market, but the same is not true for the crypto market.
The Crypto market is completely decentralized, which means it is a highly unregulated place, and there are hardly any government agencies or regulatory offices involved when it comes to recording each and every action that is being commenced on the platform.
The overall sentiment that the crypto market is sharing at the moment is delivered more promptly by consumer engagement with the asset itself and other such activities taking place on social media because there is no regulatory office involved of any kind, which means that you won’t receive any detailed reports into the price action of Bitcoin per se or any other cryptocurrency for that matter and that is why you have to take solace in finding information about such elements on social media.
Twitter is the most widely adopted platform for keeping an eye on the crypto market and all the swings that it is going through at any given moment. There are thousands of cryptocurrencies out there, and that is why there are thousands of social media groups that you could join or follow, but at the end of the day, it becomes quite impossible to keep track of all the actions that are taking place for all these tokens belonging to different categories and aspects of the crypto market.
There is a proper tool by the name of LunarCrash which will allow you to collect and sort activity data for more than 3500 cryptocurrencies and decentralized exchanges out there. What happens is that it gives you detailed insights into those particular preferences and the talks that are taking place for them on different social media platforms.
This means essentially; you would be able to get all of these items into a proper list which you can process, interpret or analyze in real-time before you rather having to go through those thousands of social media groups and trying to find the relevant information you need because this way it would literally be like finding a needle in a haystack which is impossible.
This tool will give you proper patterns and sentiments for cryptocurrencies in real-time, allowing you to have a quick bird’s eye view into the recent endeavours of the crypto market and where new opportunities lie and how you can approach them.
Technical Analysis Tools
When it comes to crypto investment, you do not want to embarrass yourself and definitely, you don’t want to be crushed by the extreme volatility of Bitcoin, Ether, or any other cryptocurrency for that matter.
To save you from the grave embarrassment that is to facing extreme price declines and over-the-top volatility, there are technical analysis tools out there that you should be using for the sake of crunching numbers in real-time that should give you proper insight into the market from what is going on the crypto market to how can you dodge the bullet of volatility.
These developers have spent most of their lives developing these tools from the ground up, providing real-time data to some of the most sophisticated machine learning operations so they can crunch down those real-time data streams to provide you with some kind of insight.
This way, you will be able to get the bigger picture at a much more efficient rate; what you can do here is you can analyze the price factor of Bitcoin or any other cryptocurrency for that matter and would be able to foresee the previous developments that allow Bitcoin to reach all-time highs over the years and at the same time the volatility aspects when its price was slashed.
This will allow you to foresee the volatility factor but at the same time be able to explore further aspects of the crypto market as well. Frankly speaking, Bitcoin is not the only crypto that you get to put your money into, as there are thousands of others and literally hundreds of blockchain elements that are powering those elements in real-time.
There is a platform by the name of TradingView that many experienced traders and investors rely on for the sake of getting the best indicators regarding crypto-related investments. You can find multiple indicators on the platform which are significant for the sake of implementing a technical analysis for a dedicated asset.
It also serves as a platform where many crypto enthusiasts and community members can get together to share their insights around technical analysis, and indicators for certain crypto assets, discussing ideas and learning from each other.
There is a wide array of market data present on the platform that is TradingView, and it provides indicators not only for cryptocurrencies but for stocks, forex, and other commodities as well. You would be surprised to know that various derivatives are also among the list of assets for whom this platform provides indicators to the investors.
They are both free and premium editions; with the basic interaction, you could get your hands on basic functionalities and tools, while if you choose to go with the premium option, there are multiple sophisticated features that are made available there which can help you to better indicate the next momentum for the crypto asset in question. This thing is extremely useful for traders who are more active within the market as compared to those who seldom visit the market for occasional trading.
Crypto Calendars
You might presume that it is a joke, but it is all in good standing; crypto calendars have not only become a thing of the present but are widely adopted among investors and traders who are actively seeking opportunities within the crypto market. It becomes impossible to keep track of all the upcoming coin burns, ICOs, IDOs, non-fungible token launches, or other conferences within the crypto world without skipping a few things here and there.
The availability of a dedicated tool that is designed in the first place to do just that makes things a lot easier. Crypto calendars are important if you want updates on all the upcoming events and don’t want to miss a single thing and stay on top of all of these wonderful opportunities which would be presented to you in real-time.
There are various economic Crypto calendars present out there, such as CoinMarketCal and or Coindar, that can provide you with updated information on not only hundreds but thousands of different tokens from non-fungible tokens hard forks, swaps, or other updates involving future releases or block halvings.
Crypto Derivatives Tracker
To be able to have a clear-cut idea of what is taking place in the crypto market in general, it is important to not only have your eyes on the spot markets but also on the derivatives as well. Because if you continue to peek only through the spot markets, then you won’t be able to know much about stuff that is going around in the derivative section; it is important to know both at particular time periods so that you don’t miss out on any important stuff.
All the action that is taking place within the crypto derivatives market actually plays a significant role in determining the overall price of cryptocurrencies. It might be an astonishing fact, but at the core of reality, it is actually true that derivative traders are going to consistently observe how the value of all the underlying cryptocurrencies is going to change in the future.
They can then provide you with helpful insights on the present market conditions, and the overall sentiment of the investor or a signal could be proposed for a dedicated trend that you should be on the lookout for. It is not only worth your while to check up on this stuff where you grab insights not only from the derivatives market and also from the spot market, but there are also various tools available online that can do your bidding for you.
There are platforms like Skew that can track multiple derivative types online along with the contracts that they have on various digital asset exchanges while at the same time providing you with real-time stats for those dedicated cryptocurrencies.
It doesn’t matter if it is options or swaps, features or perpetual contracts, rest assured you are going to get the full picture before you, and then you can make a decision regarding which particular crypto you want to favor, short or get out of in terms of pulling out your monetary support for that particular currency.
It allows you to diversify your portfolio in real-time without having to bring into account a fully-fledged market analysis conducted on the asset because it is the derivatives market that is in charge of upping or lowering the price of these assets, which is why you are well covered with only gaining insights from the derivatives market as it is.
At the end of the day, all of it comes down to if you really care about developing a future within the crypto market. Are you after a long-term goal, or is your dream based on a shortcut?
This is the very question that you need to ask yourself before stepping into the active crypto trading market, or otherwise, you are going to get blown big time. With these technical analysis tools and other possible elements on your side, you would most definitely be able to make crypto trading worth your while still managing to turn in a huge profit or returns on your original investment.