Could These New Tools Give Traders an Edge?
Coinmarketcap is one of the most important financial websites for Bitcoin & cryptocurrency traders. It is ranked as the 19th most popular financial website online according to similarweb.
Essentially, Coinmarketcap compiles and creates an average price for cryptocurrency assets based on the varying prices on different exchanges. Additionally, Coinmarketcap provides data on exchanges, such as trading volume and the number of available assets. While similar websites such as Coingecko exist, Coinmarketcap seems to be the default choice for most.
Coinmarketcap On-Chain Analysis
Recently, they have introduced new tools that allow traders to help analyze the cryptocurrency markets. This tool is called "On-Chain Analysis" and is available for over 700 different crypto assets on the platform. It can be accessed by clicking on nearly any cryptocurrency and clicking on the furthest right tab.
The announcement was made on Twitter and in Coinmarketcap's blog.
A new suite of data has touched down 🛬 on the CoinMarketCap site! 🌞 Now, users have access to behavioral insights 🗂 for over 700 cryptos, delivered by our blockchain data intelligence partner @intotheblock! 📊— CoinMarketCap (@CoinMarketCap) February 6, 2020
Get started now! https://t.co/zEzV1ttmCE
The analytics are provided via a partnership with data intelligence firm intotheblock. They provide analytics on cryptocurrencies based on machine learning and advanced statistics.
This tool is somewhat reminiscent of investing.com's technical analysis tools in the sense that it analyses whether the market is bullish or bearish. There are some major differences, however. While investing.com compiles the moving average and technical indicators, Coinmarketcap's tools use different indicators. On-Chain Analysis makes note of large transactions, the concentration of coins held by "whales" and net market growth.
It seems so far that this is a welcome addition to Coinmarketcap. Hopefully it will assist traders make more calculated decisions on whether to buy or sell an asset.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado