How To Use On-Chain Data To Improve Your Trading Strategy
In a crypto market driven by speculation, social sentiment, and macro headlines, using on-chain data offers something refreshingly different: verifiable charting, transparency, and tamper-proof insights directly from the blockchain.
For traders and investors, on-chain analytics are no longer optional, they’re essential tools for building smarter, more resilient strategies.
What Is On-Chain Data?
On-chain data refers to all information recorded directly on a blockchain, such as:
- Transaction volumes and values
- Wallet address activity
- Exchange inflows/outflows
- Miner behavior
- Supply distributions
Its the fundamental data of crypto, being the equivalent of earnings reports and balance sheets from corporate reports in traditional finance.
📚 Source: Glassnode Academy – On-Chain Basics
Why Traders Are Turning to On-Chain Metrics
Unlike off-chain indicators (e.g., technical analysis, news sentiment), on-chain metrics offer real-time, provable signals about investor behavior which are often reflected in live data and charts. They …
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