10 min read

How to choose a reliable crypto trading strategy based on the data on the evolution of the crypto market? 

CryptoQuant offers comprehensive data for crypto trading: market data, on-chain data, short/long-term indicators for Bitcoin, Ethereum, Stablecoins, ERC20 tokens. 

Basic 3 on-chain data for predicting future value through on-chain data updates:

  • All Miner's Outflow; 
  • All Exchanges Reserve; 
  • Supply Adjusted CDD.

CryptoQuant:

  • Actionable on-chain data, charts, alerts for investors in BTC, ETH, Stablecoin;
  • Insights  
  • Alerts
  • Improved data latency: 10x faster
  • All-in-one trend view of data
  • Customized charts and dashboards 
  • 120+ assets, and more data history 
  • CQ data guide in multi languages

Content

  • The list of exchanges/mining pools supported by CryptoQuant varies based on cryptocurrency
  • Why trust CryptoQuant data?
  • What is on-chain data?
  • Why do we need on-chain data?
  • CryptoQuant's 3 key on-chain data: How would you evaluate the crypto market?
  • All Miner's Outflow
  • All Exchanges Reserve
  • Supply Adjusted CDD

The list of exchanges/mining pools supported by CryptoQuant varies based on cryptocurrency 

Bitcoin/
   ├── Exchange-Flows/        // On-chain statistics(a.k.a money flow) of BTC transferred to and from exchange wallets.
   ├── Flow-Indicator/        // Indicators to signal possible price movements by assessing the value of BTC.
   ├── Market-Indicator/      // Indicators to forecast market moves.
   ├── Network-Indicator/     // Indicators to evaluate whether BTC is overvalued or not.
   ├── Miner-Flows/           // On-chain statistics of affiliated miners' wallets to evaluate supply circumstances.
   ├── Inter-Entity-Flows/    // On-chain statistics of flows between entities to see miners’ liquidation and exchange competiton.
   ├── Fund-Data/             // Regulated funds’ data.
   ├── Market-Data/           // Capitalization models to explore alternatives to market price.
   └── Network-Data/          // General statistics of Bitcoin network usage  as a basis for price models.

Ethereum/
   ├── Exchange-Flows/        // On-chain statistics(a.k.a money flow) of ETH transferred to and from exchange wallets.
   ├── ETH2.0/                // Ethereum 2.0 statistics
   ├── Fund-Data/             // Regulated funds’ data.
   ├── Market-Data/           // ETH price.

Stablecoin/
   ├── Exchange-Flow/         // On-chain statistics(a.k.a money flow) of stablecoins transferred to and from exchange wallets.
   ├── Market-Data/           // Capitalization models to explore alternatives to market price.
   └── Network-Data/          // Network usage metrics that help to examine the liquidity of the cryptocurrency market.

ERC20/
   ├── Exchange-Flow/         // On-chain statistics(a.k.a money flow) of ERC20 tokens transferred to and from exchange wallets.
   ├── Market-Data/           // ERC20 tokens price.

Checkout the list by clicking the link below.


CryptoQuant

Why trust CryptoQuant data?

The CryptoQuant procures essential on-chain & futures data which provides insight into the fundamental investment activity underlying the network.

CryptoQuant Data provides the most comprehensive on-chain and market data gathered from blockchain and major cryptocurrency exchanges. Over 1M worldwide traders are using CryptoQuant data, and more than 10,000 articles cite CryptoQuant data every month.

Blockchain can offer great potential, but it has its vulnerabilities rising as well. Among different data you can observe, market data is being cultivated and manipulated as the market is getting bigger by the day. Thus, the importance of on-chain data is growing bigger and bigger.

CryptoQuant keep track of every single transaction that occurs in the market, label addresses through dusting and machine learning-based clustering, identify entities whether it's an exchange or a mining pool, etc.

Outputs of CryptoQuant analysis can be one of the followings:

  1. Network data that relates to blockchain network itself such as active address count
  2. Market data related to price data evoked by cryptocurrency exchanges
  3. Entity flow data that summarize money flow movement among the most important players in the network such as exchanges and miners.

To be more specific about CryptoQuant entity flow data, CryptoQuant currently tracks on-chain flow metrics for Bitcoin (BTC), Ethereum (ETH), Stablecoins, and Altcoins. For example, knowledge of exchange addresses allows us to determine the supply held by exchanges and to calculate on-chain flows - i.e., the transfer of native units - into or out of addresses associated with exchanges. Measuring flows and supply held is an imperfect science so caution must be applied in their application to trading or other uses cases, particularly in the early periods of their release (note 1)*.

CryptoQuant provide real-time charts and raw entity data by following the steps below.

1.Collect labeled addresses by preceding thorough and vast amount of dusting process

2.Serve CryptoQuant data efficiently and securely

3. Ensure that CryptoQuant have valid labeled addresses based on reserve analysis, trend analysis, graph analysis, and data statistic analysis.

Data provided by CryptoQuant is trusted and used by top media such as Cointelegraph, Coindesk, Forbes, and Bloomberg.

*) - Note on Possible Delay: 

Please note that end-of-day data of exchange/miner/inter-entity flow will be ready to serve from UTC 00:00 AM that may take up to an hour. Since block confirmation takes time due to the nature of the blockchain, blocks created before 00:00 AM are reflected in the calculation sequentially. The block confirmation time varies from time to time, so the safe time to query the endpoint for a full day would be an hour after the day. (i.e., UTC 1:00AM) Note that Top 10 data will return null until the block confirmation is complete. 

Combining the blockchain data with our labeling addresses takes between 1 and 5 minutes. Therefore, to get the latest data points safely, we recommend you to request data after 10 minutes.  

What is on-chain data?

On-chain data is a meaningful metric that summarizes on-chain activities via transactions recorded on blockchain networks. With on-chain data, traders can see what happens in the networks that finally results in price movement. For example, network data provides us valuation sources for the networks, and flow data gives us an insight into actual major players' money flow in the networks. CryptoQuant aims to provide full historical on-chain data which allows you to build an in-depth understanding of the markets, therefore, leading you to make robust trading strategies.


Why do we need on-chain data?

On-chain data allows traders to view legitimate activities that occur in the entire blockchain ecosystem for correct valuation of the network whereas market price can be easily manipulated especially in cryptocurrency markets. These data from blockchain networks can be compared to traditional valuation frameworks such as financial statements in stock markets and network valuation methods (e.g. Facebook's social network).


CryptoRobotics Trading Platform
CryptoRobotics Trading Platform

CryptoQuant's 3 key on-chain data:

  • How would you evaluate the crypto market?

CryptoQuant updates most important data in the market reflecting on 400K traders around the world. As a result, we are providing more precise, and more diverse data. 

Learn basic 3 data that CryptoQuant users use to predict future value through on-chain data updates:

1. All Miner's Outflow

  • Prepare the price downfall by monitoring all miner's outflow 

Mining pools play an important role in BTC as they are in charge of supplying new BTC by mining, but they also trigger the price drop when they supply too much BTC in exchanges at once. If you monitor all miner's outflow data, you can prepare for the risk of downfall. CryptoQuant offers all miners' data from the first block to most recent block of BTC.

All Miner's Outflow

2. All Exchanges Reserve

  • Forecast long-term value of crypto currency by all exchanges' reserve 

All exchanges reserve refers to the supply of cryptocurrencies. All exchanges reserve is an important indicator to determine the future value of cryptocurrencies and is being used as a precedent indicator of price changes.

All Exchanges Reserve

3. Supply Adjusted CDD 

  • Make your strategy by observing long-term holders’ actions

Coin Days evaluates the number of coins that are not being spent, which gives more weight to estimate long-term-holder (LTH) position. When that coin is spent, the coin is considered "destroyed," and is being updated on Coin Days Destroyed(CDD) metric. CDD is the sum of products of spent transaction output alive days and its value.

Upon CDD, Supply Adjusted Coin Days Destroyed (CDD) is CDD value adjusted by supply. It is calculated as the value of CDD divided by total supply. It is adjusted CDD for better tracking of long-term holders.

 By Value Itself:

  • High: Long-held coins are moving in great amounts - Volatility risk or a trend reversal. A large number of alive days are destroyed which indicates that long-term holders' coins are exposed to selling. Since coins held long have a huge impact on the market,
  • Low: Long-held coins are moving in less amount

By Examining Trend:

  • Increasing trend: Increasing selling pressure: Long term holders' coins are continuously being sold
  • Decreasing trend: Decreasing selling pressure: Long term holders' coins are slowing down in movement
Supply Adjusted CDD
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