Crypto 101: On-chain Data, Useful Tools To Follow The Whales
On-chain data analysis is one of the schools that provide accurate information about the chain trading history to bring new thinking to investors about how to price. Let’s explore with Coincu this topic to follow the whales.
What is on-chain data?
On-chain data includes information on all transactions that occurred on a certain blockchain network. Through this, this data will openly transparent transactions as well as what players on the market are taking, making a profit-taking move, or buying more to accumulate more coins holding.
All this information will be written on blockchain blocks. Data can be widely classified into three separate types:
- Transaction data (address and receive, transfer amount, value, or remaining amount for a certain wallet address).
- Block data (data on time, exploitation fee, reward).
- Smart contract code.
Anyone who performs an action on blockchain will be verified by the nodes, accompanied by updated to the total blockchain network.
And the blockchain is currently a decentralized network, operating based on multiple nodes such as Bitcoin with more than 11,000 nodes, Ethereum has more than 8,000 nodes of data shared very wide. So no one can manipulate and modify this data source.
On-chain data analysis is a different analytical field completely technical analysis. Through this analysis, we can consider the current situation and the past, from which we can give appropriate actions in the present and future without the need for technical indicators. From there we can see that on-chain data are the most honest and clear data.
Why need to analyze on-chain data?
Basically, the on-chain analysis will help us get accurate and objective information because blockchain technology is built towards transparency in information. At the same time, information on Blockchain is difficult to penetrate and modify, so we can trust this type of information.
Thanks to this information, we will monitor the behaviors of other players in the market if they have any moves to each specific price increase or decrease. Especially the activities of whales who own a lot of financial and information resources to manipulate the market.
Therefore, monitoring the behavior of whales with on-chain and reasonable actions can help you become a “few” victory in the market.
The platforms for on-chain analysis
- Explorer browsers of that platform blockchain. For example ETH – Etherscan, BSC – Bscscan, SOL – Solscan,…
- CryptoQuant, Glassnode: Providing Bitcoin on-chain data, Ethereum, stablecoin, and some large altcoins,…
- Whalebot Alert: This is a bot on the Telegram warning strongly about on-chain fluctuations from whales.
- There are also some other platforms such as Dappradar, Dune Analytic, Intotheblock, AnyBlock, Dapp.com, Elementus, Alethio,…
In which, it is necessary to pay attention to two large platforms: Cryptoquant and Glassnode. Cryptoquant to track on-chain daily and use Glassnode to update on-chain weekly. Because Glassnode will have an on-chain update every week, this will be a document for us to refer to experts’ comments.
The notes when analyzing on-chain
It is necessary to have certain knowledge and understanding of the market when analyzing data, so this is a problem for newbie.
Searching for large and reputable on-chain data sources because it is very many updated data is wrong compared to reality.
You should not just observe and refer to on-chain data from projects. The developer may announce not completely standard data because they may want to make marketing for the project, so we need to compare on the Explorer of that dApp blockchain.
The analysis of on-chain we need to update regularly because the market changes continuously, especially the crypto market fluctuating greater than other financial markets.
Please research and practice regularly to accumulate a lot of knowledge and experience to be able to analyze and use the on-chain data smoothly, this will be one of the ways to help you track big guys in the market. Hopefully, Coincu’s article has helped you better understand this owner and have new knowledge about the market.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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