Should Crypto Traders Keep Track of on-Chain Data?
A valid question, right?
The answer should be a resounding, yes!
Here's why. Bitcoin and crypto transactions ride on a public ledger.
On their part, on-chain data are all metrics that track these transactions' behavior and other factors that vary depending on the state of the blockchain.
Depending on block generation time, crypto networks continuously and immutably update themselves, creating this juggernaut that's self-auditing.
This feature tags along with reliability. Therefore, every trader who’s determined to succeed should keep track of how 'on-chain data' changes over time.
That explains why on-chain analytics firms are minting money from their services. This is possible because it is possible to track investor activity after analyzing extractable massive data sets from public ledgers.
These are massive databases that, if chomped and analyzed, can reveal patterns that directly affect prices.
On-chain analytics firms are well aware that these blockchain-driven analytics can assist traders and investors in making informed decisions. Their data are purely fundamental driven and not influenced by hype or even technical analysis.
The development of blockchain-derived ideas contributes significantly in informing trading strategies and adjusting positions accordingly in risk management.
This is because on-chain data can help, in real-time, pinpoint the utility value of any crypto asset, providing an edge in trading.