These are the main factors to consider before investing in the crypto market

Investing has never been easier when crypto on-chain metrics allow market participants to determine who is the other trading party. Although this is possible in the cryptocurrency market, IntoTheBlock suppose, I think This data will empower investors around the world.

Metric power On-chain of crypto

Contrary to popular belief, one of the biggest advantages of the cryptocurrency market is transparency. Through on-chain analysis, anyone can determine how many investors are in a given asset when they buy and what their cost base is. Important data sets are needed to determine which digital assets need investment.

IntoTheBlock uses a statistical model and machine learning to provide insight into the profitability of cryptocurrency assets and "increase capital". For example, Bitcoin is a great case of decentralization, making it an ideal investment vehicle.

The leading cryptocurrency has only one "Whale" that holds 1.4% of the circulating supply. This address owns about 255,100 BTC and belongs to Singapore-based Huobi exchange. 98.6% of the total circulating Bitcoin is distributed between investors (10.1%) and retail investors (88.5%).

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Bitcoin's centralized ratio | Source: IntoTheBlock

Not only is Bitcoin decentralized, but the number of holders in the network is at an all-time high according to IntoTheBlock.

The "Time to Ownership" model estimates that nearly 30 million addresses have Bitcoin balances. Currently, nearly 63% of those addresses hold 10.8 million BTC for more than a year, up 23.7% since last year.

IntoTheBlock added:

“To give you more accurate information about this, we can see that Bitcoin has not moved for more than 5 years, rising from 3.6 million BTC in April 2019 to 3.95 million BTC in October. 4 years now ".

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Holder Bitcoin | Source: IntoTheBlock

Other assets like MKR do not offer the same level of decentralization as Bitcoin and most investors will only get hurt again if they sell tokens today.

In fact, IntoTheBlock's "Global I / O model" shows that 89% of MKR holding addresses are losing money while only 3% of addresses are "with money".

Money in / out across the globe of MKR | Source: IntoTheBlock

On-chain figures also revealed that of the 57,520 addresses holding MKR, only 13 of them control nearly 65% ​​of the circulating supply. And having an address accounts for nearly 25% of traffic supply.

According to IntoTheBlock, if anyone buys MKR then there is a main address to dump the token to make a profit.


Whale and MRK investors | Source: IntoTheBlock

The ability to determine the concentration level of an asset, the degree to which a holder can manipulate prices, or how confident investors can be with this new asset class. While there is not enough data to consider whether a particular cryptocurrency offers good investment opportunities, analysis makes the decision easier.

Minh Anh

According to Cryptoslate

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About My name is Nguyen Manh Cuong. I was born in a poor village in Ba Vi district, HA NOI province - windy and sunny land. Currently. Mr Cuong.
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