MODULE 3 - Dan Pentagram
📚 Advanced Cryptocurrency Course: Lesson 2 - On-Chain Analysis and Advanced Metrics 🔍
🔍 On-Chain Analysis is one of the most powerful tools for advanced investors. Unlike technical and fundamental analysis, this method is based on the direct study of public information from the blockchain to understand the behavior of market participants.
Key Metrics of On-Chain Analysis
📈 Active Transactions: This is the number of unique addresses participating in transactions. An increase in active transactions can indicate growth in the adoption and use of the network, showing good health of the project.
🏦 Inflows and Outflows from Exchanges: By observing the flow of cryptocurrencies to and from exchanges, one can understand the mindset of investors. A massive outflow of crypto from an exchange may suggest that investors are moving their assets to cold wallets to "hold," while an influx may indicate the intention to sell.
⏳ Age of Coins: This metric measures how long cryptocurrencies have remained inactive in an address. If a large number of "old" coins (that haven't moved in a long time) become active, it could signal that long-term "holders" are starting to sell, which may influence the market.
On-chain analysis provides a unique and transparent perspective of the market, allowing you to make decisions based on real data from the network, not just on price charts.
— Dan Pentagram
