The Top Information Sources for Crypto Traders

Victoria Willis

Cryptocurrency trading is gaining traction worldwide as digital coins move from the fringes of DeFi to mainstream banking. Recently, JP Morgan opened crypto trading to all clients. Decentralized finance has long held the reins of digital currency, and this new representation in the mainstream financial market represents a huge shift in the crypto marketplace.This is the first major bank in the US to offer crypto trading. For the world of cryptocurrency, this is a tremendous step forwards and is proof that digital currencies are here to stay. Digital currency is a new frontier in the world of investments and trading, and it has created a lot of excitement. 

For those looking forward to crypto trading, there are a few things to keep in mind. First and foremost, responsible trading practices require data. Uninformed trade decisions are ultimately equivalent to gambling -- especially in the world of digital currency. There are many different considerations for individuals to take stock of before jumping into the world of crypto trading. Without proper research, potentially fruitful investments may end up turning sour. 

Crypto Trading and Informed Decision Making 

When beginning a venture in crypto trading, there are many points to consider before pulling the trigger on a new investment. Researching teams, how their smart contracts operate and their supporting technologies is all necessary. Would-be investors would also do well to develop a basic understanding of what blockchain is, and how the cryptocurrency market works. Security and legitimacy in the digital realm are high points for any investment, and this is especially true of the crypto trading market. 

One thing to look out for is a new project’s white papers. Any currency worth its salt will have white papers readily available for viewing. As Investopedia explains:

Read the white paper carefully; it should tell you everything about what the developers of the project intend in their work, including a timeframe, a general overview of the project, and specifics. If the white paper does not contain data and specific details about the project, that is generally seen as a negative. The white paper is a development team's chance to lay out the who, what, when, and why of their project. If something in the white paper feels incomplete or misleading, that might speak to fundamental issues with the project itself.

In addition to reading white papers, those interested in trading crypto should review a new project’s smart contracts. In the crypto market, smart contracts are sets of computer code that run at the top of the blockchain, and they serve to establish a set of rules agreed upon by all parties involved with the transaction. Smart contracts are regarded as more convenient and more quickly executable than conventional contracts. It is important to read and understand the details of a project’s smart contracts before signing and investing. Smart contracts should be precisely worded -- and they should also contain automated security features that are in-line with current data encryption technology. 

Trading with Crypto Tools

There are many types of tools available for cryptocurrency traders. 

  • Messari is a database that pulls from an open-source library of information. It provides users with data insights as well as pricing and research on crypto assets. It costs $24.99 per month to subscribe. 

  • Nansen analyzes over 90 million Ethereum wallets and their activity. This pairs on-chain data with real-life activity, and allows users to see what currencies are moving where. Nansen pricing can range from $149 to $2,500 per month. 

  • CoinMarketCap offers users the ability to build models, run simulations and backtest their investment strategies. Additionally, market data allows users to see how other exchanges and currencies are performing. CoinMarketCap’s pricing plans range from a free-to-use basic plan to a $299 monthly plan. 

  • Evai is an “unbiased and data driven” crypto asset rating platform. EvaiLite provides users with 20 of their rated, popular crypto, DeFi and NFT assets. EvaiPro gives users a choice of over 300 assets, and EvaiElite provides users with the ability to backtest. 

  • Cryptoquant provides data on Bitcoin trading. Pricing plans range from a free beginner plan to a $699 monthly plan for enterprise-level traders. 

  • Glassnode provides blockchain data and intelligence which is used for on-chain metrics and other tools for analyzing digital assets. Glassnode’s pricing plans range from a free plan for beginners, to a minimum of $799 monthly fee for more advanced use.

Security in Crytpo Trading

One common theme among crypto trading tools is the absence of security insights. Blockchain is often considered inherently secure. However, digital currencies and smart contracts may not be. There have been repeated instances of fraudulent and malicious activity across a multitude of crypto and DeFi platforms. Security insights are a valuable resource for investors. Popular exchanges are not immune to theft -- and lapses in basic security protocols can end up being very costly. 

Investors and users of decentralized finance are encouraged to do their research before investing in digital currencies and NFTs. Information about digital assets is scattered around the web, and it usually does not relate to security of tokens, exchanges, and Blockchain networks. However, Valid Network, an Israeli Blockchain security and intelligence startup, has recently launched Valid Data, a platform that analyzes digital assets and provides live on-chain insights, risk level indices, and deep-dive information about attack vectors and smart contract vulnerabilities on crypto networks.

It’s time to Deriskify Crypto!

Uncover risks & opportunities in crypto to maximize your gains.

Valid Data’s real-time and predictive insights are used by Cryptocurrency traders and exchanges, as well as investors and hedge funds, to make better investment and trading decisions, to protect the value of their digital assets, and to capitalize on market opportunities that only Valid Network’s technology can uncover.

Try Valid Data

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