Taking on too much risk led to many losses in my early trading career. I was what some may call, an 'unprofitable' trader for some time. However, I minimized losses once I began to analyze the market thoroughly. Utilizing the right data and tools improved my profitability. In this article, I’m showing you the best crypto analysis tools for traders.
You can’t risk hard-earned money by investing it in the wrong assets – or good assets at the wrong time. How do you know what’s good and what’s bad? By studying on-chain activity, reading charts, and keeping track of the newest reports, you too can crush newbs. If you want to be successful in this market, you will need tools that warn you against impending doom – without them, you’ll end up like another Terra victim.
This article features five tools that I use every day to analyze my existing portfolio, find investing opportunities, and inspect the market as a whole.
The 5 Best Crypto Analysis Tools
Tradingview is the first platform that comes to mind when I think about the market’s best crypto analysis tools. Tradingview is a powerful charting platform that allows you to read, analyze, and draw charts for any crypto asset and stock. What I love most about the platform is that it’s free. And by the time you need to subscribe for extra features, you’ll already be a profitable trader who can afford it.
The charting platform comes with dozens of tools which you can use to draw over crypto charts and analyze the market. You can draw shapes to spot chart patterns and change timeframes or chart types to spot candlestick patterns. You can also pick from an extensive list of technical analysis indicators to draw conclusions based on complex market data.
I used TradingView to explain crypto trading concepts in my free ebook. Check it out.
Tradingview is extremely customizable, starting from the UI. You can change the chart down to the tiniest detail – the same goes for drawing tools and indicators. A dark mode option also makes it user-friendly – especially for us night owls who like to chart at 2AM.
Given that most people haven’t drawn or analyzed a single chart, Tradingview is extremely friendly to beginners. It only took me a day or two to figure out Tradingview. And when I was stuck on a problem, there was always the education hub to help me out.
The last and most important thing I want to mention is that Tradingview has a vibrant community. You’ll find plenty of custom-made scripts (for indicators) and trading ideas. You can even follow and add people as friends – the platform has several social network features.
Once you’re done with charting and wish to gain a macro overview of the crypto market, it’s time to visit Messari. Messari is a highly-popular crypto research platform that features charts, a dashboard with assets and their performance, and much more. I describe Messari to my friends as crypto’s Bloomberg terminal.
The platform features a large online database with detailed information about the entire crypto market. You can find data for L1 and L2 projects, DeFi, Web3, and NFTs. When you click on an asset, you’ll see a data terminal containing everything you need to know about the asset.
You’ll find data such as: token metrics, links to communities, a list of resources, links to blockchain explorer, a description of the asset, and how it fares against peers.
My favorite thing about the interface is the tab with a live news feed. It aggregates articles from several reputable news platforms. I use this section almost every day to keep track of news events and drama.
With a free account, you can get everything you need as a beginner. But you’ll want a paid subscription to get the most out of Messari. A premium account allows me to receive live notifications about a protocol in real time. I receive these notifications on my email and phone – making a vast difference for my ability to act promptly. I’ve been warned so many times when Solana went down or when a VC firm bought my token.
Custom reports, long-form research, and daily insights are another great benefit. Gaining access to these reports allows you to gain an edge over the market.
Glassnode is another great crypto tool that I love using for on-chain analysis. The platform gathers data from various blockchain networks and tracks their activity. Glassnode then presents this data to users who gain special insight into a network’s health and long-term outlook.
The platform became popular in 2020 when investors took notice of large Bitcoin transfers. Coins were leaving exchanges en-masse amidst MicroStrategy’s Bitcoin investing announcements. The data from Glassnode helped the community realize that institutional investors are here and that they are finally taking crypto seriously.
Glassnode features various reports: active addresses, addresses with (or more than) a certain balance, exchange outflows and inflows, supply distribution, and new address growth. It does so by analyzing blockchain data and converting it into a chart which you can easily read. However, there’s a catch: the price.
To see most reports you’ll need to pay a monthly subscription – which starts at $30. Glassnode features accounts at three different tiers, which ranges from $0 for a free account to $799 for a professional account. Problem is, most of the really good features are only available in the professional subscription. On-chain analysis might be valuable, but for most people, it’s not worth spending almost a thousand bucks.
I do not believe that on-chain data should be the deciding factor when trading or investing. What I do believe though is that it can complement your other activities such as technical or fundamental analysis. Even the free data can contribute a lot to your trading success, and that’s why I think Glassnode is one of the best crypto analysis tools in 2022.
Tradingview is the world’s best charting platform and all my crypto friends use it. However, none of us use TW to execute trades. For trade executions, we rely on Cryptowatch.
When Cryptowatch first launched its beta version, everyone scoured Twitter and Discord communities to find invite codes. Why? Because the trading platform seemed more than promising – and boy did it deliver.
Cryptowatch is a trading terminal that features charting, asset watchlists, live price alerts, and multi-exchange connectivity. Whenever I’m on the lookout for a new trade, I keep Cryptowatch’s desktop app open in the background and wait for my alert. Once the alert hits my eardrums, I switch to the app and execute a trade using the terminal.
You can customize your terminal and add charts or data for multiple coins and exchanges.
I don’t have time to log into different exchanges and manage multiple portfolios. When opportunity strikes, it strikes fast, and I don’t always get to execute a trade on time. This is where Cryptowatch steps in. I can quickly switch from my FTX account to Binance and open a futures position or simply make a buy or sell order on spot markets.
Some of the more popular exchange integrations include:
Cryptowatch also shows crypto leaderboards and information about niche sectors such as NFTs and their collections on Ethereum. And yes, every other part of the platform looks as sexy as the trading terminal – which everyone on Crypto Twitter loves.
Don’t worry, I didn’t forget about CoinMarketCap (CMC) – every beginner’s first crypto tool. CoinMarketCap is a website that shows price data, crypto leaderboards, and market statistics. It features a minimalistic user interface that shows crypto data for more than 5,000 tokens.
I use CoinMarketCap whenever I need a simple overview of how the market fares. You can’t do much with CMC, but you can check prices on the go, find links to important resources, and read a quick description of a cryptocurrency. You can also browse categories or tags and find cryptocurrencies that fit a specific niche.
What I adore about CoinMarketCap is its exchanges leaderboard. The section helps me see which exchange is currently most liquid and how much volume each one has processed in the last 24 hours. And if I want, I can see the liquidity for any given asset on any given exchange. This has helped me avoid trading an illiquid altcoin on numerous occasions.
I also use CMC to track general data such as market capitalization and Bitcoin dominance. These two metrics play a big role in when I trade and why. And if I want more detailed information, I can always visit some of the best crypto analysis tools that I mentioned in this article. CMC might not provide the most value, but it’s good enough for all of my basic investing needs.
If you’re not happy with the way CoinMarketCap reports market data for liquidity and market capitalization, you can always use an alternative. CoinGecko is another option that I use whenever I want to quickly check the market.
Other Great Crypto Analysis Tools Worth Checking Out
Now you know all of the best crypto analysis tools a trader should utilize. But if you explored every tool and still haven't found a platform you like, there are other options worth considering. Here are some alternative tools that I use every now and then.
Santimentis a social metrics and on-chain data visualizer that gives you special insight into more than 2,000 cryptocurrencies. The platform helps you view interesting data deviations such as spikes in volume, long or short orders, and exchange outflows and inflows.
Defi Pulse is a platform that aggregates market data for the decentralized finance (DeFi) sector. The tool reveals the total value behind the DeFi market, as well as the amount of money deposited into each DeFi protocol.
Shrimpy is an automated portfolio management platform that periodically rebalances your portfolio. It supports multi-exchange integration and allows you to create custom indexes and copytrade other great traders. What I love most about Shrimpy is that I can execute orders across multiple exchanges all in one place. Check out a free demo here.
Want to learn more about finding helpful crypto tools? I recommend reading the following articles:
Marko is a crypto enthusiast who has been involved in the blockchain industry since 2018. When not charting, tweeting on CT, or researching Solana NFTs, he likes to read about psychology, InfoSec, and geopolitics.