The pseudonymous Coin Bureau host is outlining the top tools crypto traders can utilize to streamline their research process.
In a new video, the analyst who simply goes by Guy tells his 516,000 YouTube subscribers that the number one tool on his list is Blockchaincenter.net’s Altcoin Season Index, which he says can help traders time crypto market rotations.
“It is usually optimal to have the majority of your crypto portfolio in Bitcoin before Bitcoin season takes off, and a hefty altcoin position before altseason blasts off. Cycle in and out of Bitcoin and altcoins at the right time, and you’re probably in line for some pretty crazy gains…
I do occasionally use this Altcoin Season Index to help me position my portfolio weightings. That index is made up of a score of zero to 100, with a score under 25 indicating that Bitcoin season is in full swing, and a score above 75 being alt season.”
Up next, Guy highlights data analytics website CryptoQuant, which provides graphical visualizations of the fund flows of Bitcoin, Ethereum (ETH), and other altcoins.
“One thing I find particularly useful is looking at the chart for all exchanges’ net flows. This helps me get a sense of the net inflow or outflow of funds from crypto exchanges…
There are other players in the crypto markets apart from speculators like you and me, and that would be miners. CryptoQuant has you covered with a plethora of data and gives you access to charts showing the all miners outflow for cryptos like BTC. If miners are moving funds around, then that could be an indication that they are about to dump some of those coins on the market.”
The third and fourth research tools on Coin Bureau’s list are the cryptocurrency calendar CoinMarketCal and blockchain data and intelligence provider Glassnode. CoinMarketCal keeps users up to date on all the important events coming up for their favorite crypto projects.
According to Coin Bureau, Glassnode provides the best on-chain analytics for Bitcoin and Ethereum of any firm on the market. The trader says he particularly uses Glassnode’s Net Unrealized Profit/Loss (NUPL) indicator, which reveals what percentage of investors are in profit at any given time. Generally, says Coin Bureau, when a vast majority of investors are in profit, it may indicate that market participants are in the euphoria stage of the cycle, which is the phase analysts believe comes right before a major crash.
Guy also recommends the Bitcoin statistics and services platform Coin Dance, which he uses to gain a wider perspective on the crypto environment and to gauge the pace of crypto adoption in various regions.
Up next on the analyst’s list is 3Commas, which allows traders to test their strategies against historical data and in real time without having to risk their capital.
At number seven is the derivative data analytics tool ByBt, which the analyst recommends for more experienced traders who use derivative markets data for their trading strategy.
News aggregator platform CryptoPanic and crypto online database Messari are number eight and nine on the list of recommended tools.
Last on the list is TradingView. Says Coin Bureau on the cloud-based charting and social networking platform,
“You can gauge the overall sentiment of the trading community by seeing if the majority of forecasts are bullish or bearish and what price targets traders are keeping their eyes on. You can then combine that information with other data from tools mentioned in this video to make an informed choice of where you think the market will go and position your portfolio accordingly.”
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