With so many different tokens on the market and so much noise, it can be difficult to develop a winning strategy in crypto. The most successful traders and investors rely on different tools and statistics to help them make their decisions. We use many different tools to develop our strategy. And one of our favorites is Token Metrics.
In addition to providing powerful resources for technical analysis, Token Metrics factors in fundamental analysis and market sentiment, which gives you a more complete view of the market. In this article, we take a deep dive into Token Metrics, a powerful tool that gives you unique insights into the crypto markets.
What is Token Metrics?
We use them exclusively on this website for monthly crypto plays over the last few years. Some of those that we picked through Token Metrics were some of the best calls we ever made. This platform has a variety of different products that help with technical analysis and educational resources to help you dig deeper into the fundamental analysis of your favorite crypto projects.
Now, you might be familiar with Token Metrics from their YouTube channel, or the team’s occasional appearances on Around The Blockchain. But you may not have heard about all the different tools that are available through their premium service.
One of the platform’s most popular features is the recommended indexes. These show sample portfolios selected by AI and machine learning with excellent track records. There are actually charts that will show you how these indexes performed against Bitcoin in the past and can give you a rough idea of what future performance might look like.
Now, you don’t have to copy these indexes into your own portfolio. And that probably isn’t the best way to approach this. To learn as much as you can about the projects you’re interested in, use these indexes as guides to direct you towards some projects that should be on your radar. Do some research into these various projects and decide which ones might be right for your portfolio.
You can also select different time horizons for your trade, which will many times change the assets that are being recommended. An index that is recommended for short-term trading in the daily tab will be typically different from the ones that you will see in the weekly, or monthly timeframes because some assets will be better for short-term plays, while others are better for long-term plays.
Indexes of Assets
Now, one of the other features is you have the ability to choose just how much of a degen you want to be. With indexes of assets up to $30 million in market cap separated by those above the $30 million market cap, this will give you a clearer look at those next potential moonshots separate from assets with less inherent risk.
You can get very specific with the details as well. Say, for example, you have an account set up with KuCoin, but you aren’t able to access the main Binance site because you’re a US resident. With Token Metrics, you can set it up to only show you indexes of coins that appear on the KuCoin exchange. You can also include decentralized exchanges, like Uniswap, which will carry almost anything that launches on the Ethereum network.
With Token Metrics, you can also access important on-chain data for you to bring into your analysis. These tools provide you data for various different chains showing information about exchange inflows, money activity, and more. There are also statistics that show you how correlated particular assets are, which can be very important for hedging.
We’ve all seen how the market tends to follow each other, especially when it comes to Bitcoin setting the tone for the rest of the market. But with these statistics, you can identify potential outliers, which may be running against the market in the short term. This can also give you some additional insight into how you can balance your portfolio.
There are also plenty of valuable educational resources in the Token Metrics subscription, including crypto tutorials and regular video updates through Token Metrics TV, which gives regular market updates, technical analysis, and tips on new and upcoming projects.
New content comes out pretty much every day, with even more recent videos than you will find on the Token Metrics YouTube channel.
Another interesting tool that Token Metrics offers is sentiment analysis, which shows you how top crypto assets are being favored across different social media platforms, letting you know whether the current community sentiment is positive, negative, or neutral. Very positive and very negative ratings are also included in cases where the sentiment is extreme.
Each asset has its own profile where you can see some of the most important information about the project including its current price action, market cap, and sentiment, along with any recent news that might give some insight into fundamental developments. These statistics are pulled directly through the APIs of Twitter, Reddit, and Telegram and then run through a machine learning algorithm that looks for patterns to generate tips.
A recent update to Token Metrics has made it even easier to navigate, with separate tabs showing insights into the top crypto ecosystems such as layer 1s, metaverse, NFTs, and DeFi. You can also look at the individual ecosystems of each layer 1 at a glance.
Each tab has the projects in that section ranked by their potential to perform in the future. This is not a ranking of coins that have already been pumped. It’s a ranking of those that are most likely to pump in the future. Because we know chasing green candles is rarely a good idea. These rankings factor in a variety of different fundamental and technical analysis data points to make predictions.
The new Token Metrics 2.0 interface also has a trending section so you can see which assets are trending on a daily basis.
You can also use the Token Metrics trend indicator, which is a very simple chart that tells you whether different assets are trending bullish or bearish. These charts can also be broken down into daily, weekly, and monthly timeframes, like most of the tools you’ll find on Token Metrics.
If you want to track your own personal portfolio using Token Metrics’ powerful tools, you can use their profile tracker to keep an eye on your assets. Now, with the recent update, you no longer need to manually enter every single one of your trades. You can actually connect your Token Metrics account with your exchange account so everything is tracked in real-time.
Many of these recent improvements were introduced thanks to feedback from the Token Metrics community who offered suggestions about what features they wanted to see on the platform.
There are a ton of powerful tools for you to take advantage of with Token Metrics. And you may find some unique ways to use them that we haven’t even mentioned here in this article.
Now, as with any trading tool, this should not be something that you’ll just follow blindly. You need to integrate it into a diverse strategy of fundamental and technical analysis that you compare with other sources to come to your own conclusions.
Disclaimer: Please keep in mind that I am not a financial advisor. I’m only sharing my personal experience and thoughts. All strategies, tips, suggestions, and recommendations shared in this article are solely for the purpose of entertainment and education.