Potential Strategies in Crypto Investing

Will try on below 10 strategies one by one:

  1. Supply held by top 10% of addresses (CRYPTO_SPLYADRTOP10PCT): If this number is excessively high, it could indicate that the currency is controlled by a small number of entities, aka “whales”, which could mean potential price manipulation. Diversify investments across different coins to mitigate risk.
  2. Mean hash rate (CRYPTO_HASHRATE): A high hash rate usually indicates a healthy, secure network with many participants. This could be used as a metric to identify potentially stable investments.
  3. MVRV (Market value/Realized value, CRYPTO_CAPMVRVCUR): This is a measure of the speculative value of an asset. A high MVRV ratio indicates a higher speculative value, meaning the crypto might be overvalued, so caution must be taken.
  4. Active address count (RYPTO_ADRACT30DCNT): An increase in this metric over time could indicate growing usage of a token and might signal bullish price action.
  5. Exchange deposits and withdrawals (CRYPTO_FLOWINEXUSD, CRYPTO_FLOWOUTEXUSD): Monitor these metrics for sudden inflows or outflows from exchanges, which can be an indication of upcoming selling or buying pressure.
  6. Total issuance, native units (CRYPTO_ISSTOTNTV): If new coins/tokens are being issued at a high rate, it could lead to inflation and decrease the value of existing tokens. It’s crucial to understand the token economics of a cryptocurrency before investing.
  7. Adjusted transfer value (CRYPTO_TXTFRVALADJNTV): Monitoring this value helps understand the real economic value moved on the blockchain excluding noise and certain artifacts. A sustained increase might indicate a growing usage or demand for a certain token.
  8. Miner revenue (CRYPTO_REVUSD): If miners’ income (both transaction fees and block rewards) is steadily increasing over time, it can indicate that the network is growing and provide a bullish signal for the cryptocurrency.
  9. Supply, free float (CRYPTO_SPLYFF): The more supply there is in the free float, the more availability there is for traders and investors, which could decrease volatility and create a healthier market condition.
  10. Trusted spot volume (CRYPTO_VOLUME_TRUSTED_SPOT_USD_1D): High trading volume on trusted exchanges can be a good indicator of liquidity and market interest which could lead to less volatility and easy filling of trading orders. High volume could be associated with a strong market move.

Or

  1. Monitor Both Active and Dormant Addresses: By evaluating both the active address count (RYPTO_ADRACT30DCNT) and the dormant ones (address count with native units over specific value), you can gauge network participation and potential sell-offs or accumulation.
  2. Watch Whale Activity: By keeping an eye on metrics like ‘Supply held by top 10% of addresses’ (CRYPTO_SPLYADRTOP10PCT), you can detect potential price manipulation by large holders, aka “whales”, and plan your investments accordingly.
  3. Look for Healthy Network Indicators: Hash rate (CRYPTO_HASHRATE) indicates network health and security, a consistently high hash rate may suggest a suitable investment.
  4. Assess Market Speculation: Use the MVRV (Market value/Realized value – CRYPTO_CAPMVRVCUR) to assess the speculative value in a crypto asset. High MVRV levels could indicate overvaluation and potential for price correction.
  5. Monitor Exchange Flow: Monitor Exchange deposits and withdrawals (CRYPTO_FLOWINEXUSD, CRYPTO_FLOWOUTEXUSD) for signs of incoming selling or buying pressure which could indicate significant price movements.
  6. Check Coin Supply: Pay attention to total issuance of native units (CRYPTO_ISSTOTNTV). Rapid increases may lead to inflation and devalue existing tokens.
  7. Evaluate Transaction Activity: Use Adjusted transfer value (CRYPTO_TXTFRVALADJNTV) to track the true economic value moving across the network. Increases could signal growing demand and potential price appreciation.
  8. Track Miner Revenue: Consistent or growing Miner revenue (CRYPTO_REVUSD) could be a bullish signal indicating network growth.
  9. Consider Free Floating Supply: Examining Supply, free float (CRYPTO_SPLYFF), can indicate health of market conditions and potential for price stability.
  10. Evaluate Trading Volume: Monitoring Trusted spot volume (CRYPTO_VOLUME_TRUSTED_SPOT_USD_1D) gives insights on liquidity and market interest. Often high volume is associated with strong market moves.

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