published by: Admin
On-Chain Analytics: An investment approach to cryptocurrencies
One of the major issues hindering the mass adoption of cryptocurrencies is the lack of fundamental analysis that exists in traditional markets like the stock market. It is hard to do any form of analysis on cryptocurrencies without having significant knowledge of blockchain and technical analysis. The majority of retail investors in the cryptocurrency market have little to no knowledge of the value of what they are investing in. They are only investing in cryptocurrencies based on recommendations from individuals such as myself.
Three questions I am frequently asked are:
- “Which coin can I buy today?”
- “Is it the right time to enter the market?”
- “How can I analyze cryptocurrencies?”
So far, the most dominant form of analysis in cryptocurrency trading/investing is the study of price action called technical analysis. However, by utilizing the wealth of information provided by public blockchains such as Bitcoin and Ethereum, we get a unique perspective that has never been seen before in traditional assets and one which can complement other analyses.
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