Cryptocurrency analysis is the process of studying patterns in the blockchain industry and then using this information to determine whether to buy or sell an asset. Broadly, this analysis is divided into technical and fundamental. Technical is about analyzing charts, while fundamental is about establishing the key drivers of an asset. In this article, we will identify the best tools that will help you analyze cryptocurrencies for free.
Decentralized Finance (DeFi) is one of the most critical areas in the blockchain. Its goal is to change the broader financial industry radically.
For example, instead of using a centralized exchange like Coinbase and Binance to trade currencies, you can use one that is owned and operated by the community. Similarly, instead of wasting time in banking queues, you can use platforms like Maker and Compound to borrow funds.
One way of checking the performance of DeFi platforms is to look at the amount of money that is locked in the ecosystem. Fortunately, since these platforms are built using open ledger technology, it is possible to find this data easily. Most platforms also provide this breakdown on their websites.
Therefore, DeFi Llama is one of the most important analytical tools that you can use when analyzing DeFi tokens like Uniswap, Aave, and Anchor Protocol. You can also use the platform to analyze smart chain blockchains like Ethereum, Terra, and BNB.
DeFi Llama also expands its ecosystem to include analytics on other areas like oracles, airdrops, and forks. The chart above shows the total value locked (TVL) in all blockchains tracked by the company.
CoinMarketCap (CMC) is a well-known website that is visited by over 175 million people every month. Its mobile applications are also equally popular among cryptocurrency investors and traders.
The website was initially started with the simple goal of showing investors the distribution capitalization of different digital currencies in the market. In the past few years, however, the platform’s business has grown to include other features that are useful to traders.
First, CoinMarketCap has included a feature that tracks volumes in both centralized and decentralized exchanges. Therefore, a quick look at this data can help a person determine whether to buy or sell digital currencies.
Second, CMC has introduced a feature that showcases the movements in the non-fungible token (NFT) industry. On the website, you can see the volume of leading NFTs traded every day. Some of the top NFTs it tracks is Azuki, Bored Ape Yacht Club, and Imposters Aliens. Therefore, one can gain a lot of information by just looking at this flow.
Further, CMC has a new tool known as Cryptown, which is a social media platform where people and developers can interact. It also has more features like calendars and portfolios that can help you make better decisions.
Another free resource when it comes to analyzing cryptocurrencies is BTC.com. It is a website that provides some of the most useful data on several cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
BTC.com presents data on mining, hash rates, and mining difficulty in an easy-to-use manner. With this information, you can learn about the trends. For example, if Bitcoin mining difficulty is increasing, it can be a sign that there is strong demand in the network. On the other hand, if the difficulty is falling, it is usually a sign that demand is either falling or stabilizing.
Another useful piece of data in BTC.com is on the mining pool. A mining pool is a collection of miners who combine their mining resources. Examples of these pools in Bitcoin are Foundry USA, AntPool, and Binance Pool. BTC.com shows you the performance of these pools on a real-time basis. The chart above shows Bitcoin and Ethereum’s mining pools.
Glassnode is one of the best platforms for cryptocurrency analysis. Its website is so popular that it receives almost a million visitors every month.
Glassnode is a company that provides in-depth on-chain data on top cryptocurrencies like Ethereum, Bitcoin, and Litecoin. It also tracks popular stablecoins like Tether, Binance USD, Pax Dollar, and Dai. Other popular cryptocurrencies tracked by Glassnode are DeFi tokens like AAVE, Balancer, and Bancor.
Glassnode tracks the most critical on-chain data that are useful to both investors and traders. Some of these numbers are addresses, wallet distribution, fees, long/short ratio, and market indicators. The chart below shows the relationship between the number of Bitcoin addresses and its price.
Glassnode provides some of the most useful features for free and then charges a certain amount for the rest. In my experience, it is possible to use the free version and gain meaningful insights about digital currencies.
CoinPricePredict is a new and fast-growing website that provides useful resources to cryptocurrency traders. It has several features that most traders will find useful. For example, it has a forecast page that allows people to submit their predictions on cryptocurrencies. Additionally, it has excellent educational materials that will help new and advanced traders get more information about cryptocurrencies.
Additionally, the website has a news and analysis section that provides timely news and analytics for all types of digital currencies.
There are many websites that provide data and other tools to traders and investors. This article has looked at some of the most important ones that offer these services for free. Other notable mentions are Messari, CoinGecko, DeFi Pulse, and DappRadar.