4 Tools to Help You Understand the Crypto Market

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If you want to dive in and explore the exciting world of crypto, it can be easy to get stuck at the first hurdle. For all we hear about cryptocurrencies on the news, few people truly understand what they are and how they work.

It can be a difficult industry to break into, full of complex terms and confusing concepts. However, there are a number of tools that can help you get started and allow you to better understand the market, whether you want to buy Bitcoin or check the Dogecoin price. We’ve listed a few of these tools below. Read on to check them out.

Messari

The crypto world is sprawling and complicated, made up of thousands of separate cryptocurrencies and blockchain networks. If you want to understand the market, getting to grips with such an expansive sector can be difficult, or even impossible.

Messari

Messari is a comprehensive database that you can use to get a broad overview of the market, from major cryptocurrencies like Bitcoin and Ethereum to more obscure meme coins like Pepe and Shiba Inu.

However, to truly understand the market you’re going to dive a little deeper, and thankfully Messari allows you to do just that. You can focus on specific assets and study their performance history and real-time performance. All the data the tool provides is checked and verified to ensure that it is accurate.

What’s more, Messari is also an educational tool. Crypto and blockchain tech can be tricky to understand, especially for newcomers. Messari offers a wide selection of learning resources across a range of subjects to help you learn and expand your crypto knowledge.

TradingView

There are numerous different ways to invest in crypto. Some choose to invest and hold their assets for an extended period of time, a practice referred to as HODL in crypto circles. At the opposite end of the spectrum is day trading.

TradingView

This involves buying and selling crypto rapidly, often within a 24-hour period, to take advantage of small price fluctuations.

Being a successful day trader demands intimate knowledge of the crypto market. You must be able to accurately predict short-term price movements and you have to act quickly if you want to profit from them.

Day trading is a specialised skill that would be impossible without the correct tools. TradingView is the perfect platform for day traders. It allows users to view detailed charts and build their own customised comparison reports.

Users can set their own metrics and alerts on TradingView. This means the tool can be completely personalised to suit unique trading strategies that are focused on specific cryptocurrencies.

LunarCrush

Cryptocurrencies are inextricably linked to online communities and internet culture.

LunarCrush

The earliest proponents of these digital currencies were found on forums and message boards, and you only need to look at the recent success of memecoins like Dogecoin to see how powerful the relationship between crypto and the internet remains.

If you’re thinking of investing in a cryptocurrency, there are a few steps you need to take first. Studying the asset’s value and price performance is important, as is reading the whitepaper and evaluating the strength of the team and the technology behind it.

However, you also need to spend some time online in crypto-focused spaces. Only by immersing yourself in the community will you be able to gain a true understanding of your intended investment, and you’ll be able to glean valuable insights that could sway your decision one way or the other.

This can be a time-consuming process, but thankfully there is a tool that can help. LunarCrush tracks the social media sentiment and opinion of cryptocurrencies and other digital assets, like NFTs, presenting the data into easily digestible reports.

If you’re thinking about investing in a cryptocurrency, you can use LunarCrush to analyse what the crypto community is saying about it and whether there are any issues you should be aware of.

CryptoMiso

Cryptocurrencies are powered by advanced technology which is constantly being upgraded and developed. When you invest in a cryptocurrency, you are essentially investing in that technology, backing it to succeed in an increasingly competitive market landscape.

CryptoMiso

Sometimes, a cryptocurrency’s value can lag behind the performance of the technology. You could be investing in an asset with failing software without even realising it. This is why it’s so important to evaluate the strength of the technology behind a cryptocurrency before you decide to make an investment.

Rather than ranking assets according to their current trading value or market cap, CryptoMiso is a tool that ranks cryptocurrencies according to their GitHub activity. GitHub, a software development platform, is where many cryptocurrencies are designed and maintained.

If your cryptocurrency of choice is showing lots of GitHub activity, this indicates an active team and community and suggests that the technology is being continually developed, a positive sign that may encourage you to invest.

Conclusion

It can be tough as a newcomer to the crypto world. Many feel discouraged before they even get started, put off by the complexity of the technology and the high barrier to entry.

This is why tools are so important; they can help you better understand these digital assets and build a clearer picture of the most appropriate investment options. 

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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