The crypto market is like a game of chess. Every move you make is gonna affect the ultimate results. One secret to being a successful trader in crypto trading is mastering and utilizing the best research tools to exploit market trends.
Let’s break down five free research tools that can skyrocket your crypto research game.
Why Use Crypto Research Tools and Charts
Investing is about managing risk and determining the upside of a project. Tools are essential in simplifying the research process, especially for newbies to the game. You can’t just guess or copy other traders’ ideas when trading cryptocurrency. Or you risk losing everything within a few moments.
With the enormous amount of projects currently going on in the crypto market, there have never been so many opportunities within reach. But slow-moving traders miss important day-to-day trends and news in a rapidly evolving industry. This is where research tools and market charts come into play.
Types of Crypto Research & Analytic Tools
- Crypto Charting Tools: Provides historical and graphical data representations to help predict the future of a particular token.
- Crypto Analytics: On-chain analytical tools that record transactional data on a specific blockchain system, thus tracking trends like transactions, wallet addresses, miners’ fees, etc.
- Trading Bots: AKA copy-traders, trading bots allow users to imitate advanced traders, and execute trading functions based on successful trends. These crypto trading automated tools enable short-term investors to set predetermined data conditions. When the conditions are met, the tool does the rest without the user’s intervention.
- Price Trackers: These crypto analytic tools observe and track the prices of digital assets, thus notifying traders of any abrupt changes in the market. Based on predefined notification set-ups, they monitor the particular token’s price and alert the investors whenever the set thresholds are met.
5 Best Crypto Research Tools to Use in 2023
Traders utilize this tool to filter through and analyze top revenue-producing products. Token Terminal has simplified extensive product investigation in the crypto market. It provides clean, accurate, and up-to-date data to quickly understand what’s happening in the markets and how to think about valuing assets. It also helps investors point out disparities between market capitalization and gas fees.
DeFi Llama analyzes and filters through chain networks to identify real-time liquidity flow. Ie. DefiLlama is the largest TVL aggregator for DeFi. Traders utilize it to scrutinize blockchains to find liquidity data on projects.
You can use Dune analytics to visualize tokens’ data across various blockchains. It allows you to ‘wallet-watch’ and analyze digital assets easily. It’s a powerful way to get top-level analysis done visually. And, since it’s a community-based open-source data provider, it’s free.
Bubblemaps is a supply auditing tool for DeFi tokens and NFTs. It’s popularly used to filter through brand new tokens, performance history, and their current status in the crypto market. You can therefore exploit it to identify the decentralization status of a certain asset quickly.
Lastly, we have Twitter. Surprised to see it on this list? We totally understand why you would be astonished. Investors discovered that you could use Twitter’s advanced search features to identify authoritative accounts in the game; and historical token trends data.
Remember to filter through the garbage and bot accounts. Use Twitter lists during your extensive research to keep tabs on authoritative accounts that share the good stuff.
Crypto research and analytical tools are constantly evolving. We already have dominant players in the market, and new ones keep launching as time goes by. There’s no one-size-fits-all tool when it comes to conducting research. It’s best to utilize several to paint a picture of what the future looks like for a particular project.
What is the best crypto research site?
Unfortunately, there’s no clear best site. Big players like Messari and Coinbase are out there trying to crown themselves. But the ideal option is one that always accommodates your analytical needs. Preferred sites can always vary from one trader to another based on the use case. The preference varies depending on the tool’s functionality and user interface.
Whether you need a charting tool, trading bot, or price, we recommend choosing a few sites. Focus on these to fully comprehend them and how to utilize them to your advantage.