#OnChainInsights

What is onchain analytics and how to use it as a crypto trader?

Onchain analytics is the examination of blockchain data to understand transaction patterns, asset movements, and network health.

It offers unique insights into market movements that are absent in traditional finance, providing participants with a different approach to research and due diligence.

Onchain analytics can be a new framework for evaluating cryptocurrencies that allows users to establish an edge.

Understanding onchain analytics

Blockchain analytics, also known as blockchain analytics, involves examining blockchain data, such as transactions and wallet address holdings, to understand the actions of market participants on their respective blockchains in real-time. This unique insight into market movements, absent in traditional finance, provides participants with a different approach to research and due diligence.

Public blockchains, such as Ethereum, Solana, and Bitcoin, are transparent digital ledgers that are auditable by anyone and everyone. Every transaction and event on these chains is visible and publicly accessible, allowing anyone, anywhere, at any time to access and analyze them.

This transparency brings a different paradigm to trading. It allows real-time monitoring of transactions, providing a deep understanding of market activity. Consequently, users who effectively utilize onchain analytics can make more informed decisions and identify opportunities earlier.

Onchain Data and Its Importance

On-chain data refers to transactions that have been verified and recorded on a blockchain. On-chain data can be openly accessed through block explorers, and users can use this information to determine potential price movements.