Introduction to On-chain Analysis

On-chain analysis is the key to understanding the cryptocurrency market. If you're just starting to delve into this topic, this article is for you. We'll explain on-chain analysis in simple terms and show you how it can be useful. Let's dive in 👇

Problem of traditional finance

For a moment, let’s set aside the world of cryptocurrencies.

Everyone seeks to preserve and grow their wealth: they deposit money in banks for interest, buy real estate, or invest in stocks. Some people make money, while others lose it. However, ordinary people do not have access to information about what others are doing. And wouldn’t it be incredibly useful if you could? You could analyze others' actions and learn from their successes and mistakes. Imagine if you could find out where funds and the wealthiest people invest or what stocks the most successful investors are buying. Wouldn't that be fantastic?

In traditional finance, this information is held by banks, exchanges, and large corporations. It is used to increase their own profits and is sold between them for high prices. The average person has no chance of accessing it.

Cryptocurrencies change the game entirely!

Blockchain, the technology underpinning cryptocurrencies, creates a fully transparent and open system. Every transaction, every transfer of funds, every investment — all of this is recorded on the blockchain and available for analysis. This is what on-chain analysis is all about.

On-chain analysis allows you to track the actions of major market players, such as funds, whales (large cryptocurrency holders), and successful traders. With it, you can find out:

• What assets are large investors buying?

• When and what assets are they starting to sell?

• How do market participants behave during periods of growth or decline?

This data gives you an edge by enabling you to make decisions based on real network activity. It's like peeking into the financial books of major corporations, but in the world of cryptocurrencies.

Why you need CherryPick?

However, accessing this data can be challenging. The information on the blockchain is stored in a complex manner, and analyzing it requires programming skills, powerful servers, and a lot of time. That’s why we offer ready-to-use solutions.

On our CherryPick platform, you'll find pre-prepared on-chain indicators and analytical tools. We’ve done the heavy lifting for you, presenting the information in an easy-to-use format. You can track market trends, analyze the actions of successful investors, and use this data to make informed decisions.

In the Follow Smart Money section, you can find information on the activity of the most successful traders and investors. Our documentation space includes useful articles on on-chain analysis, tutorials for using our platform, and API documentation.

Dive into the world of on-chain analysis with us and make more informed decisions in the crypto market!