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Tools and Data Sources

This guide covers the essential platforms and tools you need to perform on-chain analysis effectively. Whether you're just starting out or looking for professional-grade insights, this section will help you choose the right tools for your trading needs and budget - no programming knowledge required.

Prerequisites

This module supports the practical implementation of concepts from Bitcoin Metrics, Ethereum Metrics, and Scoring Systems. Understanding what data you need helps you choose the right tools.

Professional Data Platforms​

Glassnode.com​

Overview: The most comprehensive on-chain analytics platform, perfect for both beginners and professional traders who want reliable Bitcoin and Ethereum data.

What You Get:

  • Over 200 ready-to-use charts and indicators for Bitcoin, Ethereum, and major cryptocurrencies
  • Easy-to-read charts with different time periods (daily, weekly, monthly views)
  • High-quality data trusted by institutional investors
  • Email alerts when important metrics reach key levels
  • Mobile-friendly interface for checking data on the go

Perfect For: Anyone serious about understanding crypto market cycles and making data-driven decisions

Key Indicators Available:

  • MVRV Z-Score (market value vs realized value - shows if Bitcoin is overvalued or undervalued)
  • Puell Multiple (mining profitability indicator)
  • SOPR (profit/loss indicator for Bitcoin holders)
  • Exchange flows (tracking when large amounts move to/from exchanges)
  • Mining data and network health metrics
  • Ethereum staking and DeFi activity metrics

How to Get Started:

  1. Visit Glassnode.com and create a free account
  2. Explore the free tier metrics to get familiar with the platform
  3. Consider upgrading to paid plans for access to advanced indicators
  4. Set up email alerts for key metrics relevant to your trading strategy

CryptoQuant.com​

Overview: Excellent platform for tracking cryptocurrency movements between exchanges and understanding market sentiment through derivatives data.

What You Get:

  • Real-time tracking of Bitcoin and crypto moving in and out of exchanges
  • Futures market data (funding rates, open interest) that shows trader sentiment
  • Mining pool information and network security metrics
  • Social sentiment indicators combined with on-chain data
  • User-friendly charts and dashboards

Perfect For: Traders who want to understand when big players are buying or selling, and market sentiment analysis

Key Features:

  • Exchange Flow Tracking: See when large amounts of Bitcoin move to exchanges (potential selling pressure) or away from exchanges (potential accumulation)
  • Derivatives Insights: Understand if traders are overly bullish or bearish through funding rates and open interest
  • Whale Alerts: Get notified when unusually large transactions occur
  • Mining Analysis: Track mining pool behavior and network security

How to Get Started:

  1. Sign up for a free account at CryptoQuant.com
  2. Start with the exchange flow charts to understand market dynamics
  3. Explore the derivatives section to gauge market sentiment
  4. Set up alerts for significant exchange flows or whale movements

Santiment.net​

Overview: Unique platform that combines on-chain data with social media sentiment and development activity for over 100 cryptocurrencies.

What You Get:

  • On-chain metrics for Bitcoin, Ethereum, and 100+ other cryptocurrencies
  • Social media sentiment tracking (Twitter, Reddit, Telegram mentions)
  • Development activity monitoring (how active developers are on projects)
  • Network growth and user adoption metrics
  • Easy-to-use screening tools to find interesting projects
  • Custom alerts for price, social, and development changes

Perfect For: Traders who want to analyze multiple cryptocurrencies and understand both market data and community sentiment

Unique Strengths:

  • Social Sentiment Analysis: Track when cryptocurrencies are being talked about more or less on social media
  • Development Activity: See which projects have active development teams (a sign of long-term health)
  • Multi-Asset Comparison: Easily compare different cryptocurrencies side-by-side
  • Early Signal Detection: Spot trends before they become obvious through social and development data

How to Get Started:

  1. Create a free account at Santiment.net
  2. Explore the social sentiment charts for major cryptocurrencies
  3. Check development activity for projects you're interested in
  4. Use the screening tools to discover new opportunities
  5. Set up alerts for social sentiment spikes or development activity changes

Free and Budget-Friendly Options​

Free Resources for Beginners​

Glassnode Free Tier​

  • Access to basic Bitcoin and Ethereum metrics
  • Limited historical data (typically 1 year)
  • Perfect for learning and getting familiar with on-chain analysis
  • No credit card required to start

CryptoQuant Free Account​

  • Basic exchange flow data
  • Limited alerts and notifications
  • Good for understanding market dynamics
  • Ideal for casual analysis

Blockchain Explorers​

  • Blockchain.info: Free Bitcoin transaction and address analysis
  • Etherscan.io: Free Ethereum network data and transaction tracking
  • Blockchair.com: Multi-blockchain explorer with basic analytics

Budget-Friendly Paid Options​

Mid-Tier Subscriptions ($20-50/month)​

  • Glassnode Advanced: More metrics and longer historical data
  • CryptoQuant Pro: Enhanced alerts and additional indicators
  • Santiment Pro: Full access to social sentiment and development data

What You Get:

  • Extended historical data (3-5 years)
  • More frequent data updates
  • Additional metrics and indicators
  • Enhanced alert capabilities
  • Priority customer support

Setting Up Alerts and Monitoring​

Getting notified when important market conditions occur is crucial for successful on-chain analysis. Here's how to set up alerts on the major platforms without any technical complexity.

Glassnode Alerts (Simple Setup)​

Step-by-Step Process:

  1. Access Alerts: Log into your Glassnode account and click "Alerts" in the main menu
  2. Create New Alert: Click the "Create New Alert" button
  3. Choose Your Metric: Select the indicator you want to monitor (like MVRV Z-Score or Puell Multiple)
  4. Set Your Threshold: Enter the value that should trigger the alert (for example, MVRV Z-Score below -1.5 for potential buying opportunities)
  5. Pick Notification Method: Choose email notifications (easiest option)
  6. Set Frequency: Decide if you want immediate alerts or daily summaries

Popular Alert Ideas:

  • MVRV Z-Score drops below -1.5 (potential buying opportunity)
  • MVRV Z-Score rises above 6 (potential selling opportunity)
  • Large Bitcoin exchange inflows (potential selling pressure)
  • Puell Multiple drops below 0.5 (mining capitulation signal)

CryptoQuant Alerts (User-Friendly)​

Easy Alert Setup:

  1. Exchange Flow Monitoring: Get notified when unusually large amounts of Bitcoin move to or from exchanges
  2. Whale Movement Alerts: Track when big holders make significant transactions
  3. Market Sentiment Alerts: Get notified when funding rates reach extreme levels (showing overly bullish or bearish sentiment)

Practical Alert Examples:

  • Alert when more than 10,000 Bitcoin flows into exchanges in one day
  • Notification when funding rates exceed 0.1% (very bullish) or drop below -0.1% (very bearish)
  • Whale alert for transactions over 1,000 Bitcoin

Santiment Alerts (Social & Development)​

Simple Social Alerts:

  • Get notified when social media mentions of specific cryptocurrencies spike
  • Alert when development activity increases significantly for projects you're watching
  • Notification when network growth metrics show unusual activity

Setting Up:

  1. Choose the cryptocurrency you want to monitor
  2. Select social volume, development activity, or network growth
  3. Set percentage increase thresholds (like 50% increase in social mentions)
  4. Choose email notifications

Choosing the Right Tools for Your Needs​

For Complete Beginners​

Start Here:

  • Glassnode Free Tier: Learn the basics with free Bitcoin and Ethereum metrics
  • Blockchain Explorers: Get familiar with how transactions work
  • Focus: Understand MVRV Z-Score and basic exchange flows first

Monthly Budget: $0 Time Investment: 2-3 hours per week to learn the basics

For Casual Traders​

Recommended Setup:

  • Glassnode Advanced ($29/month): Access to more metrics and historical data
  • CryptoQuant Free: Basic exchange flow monitoring
  • Focus: MVRV Z-Score, Puell Multiple, exchange flows, and basic alerts

Monthly Budget: $30-50 Time Investment: 5-10 hours per week for analysis

For Serious Traders​

Professional Setup:

  • Glassnode Professional ($99/month): Full access to all metrics
  • CryptoQuant Pro ($39/month): Advanced exchange flow and derivatives data
  • Santiment Pro ($35/month): Social sentiment and multi-asset analysis
  • Focus: Complete systematic approach with multiple data sources

Monthly Budget: $150-200 Time Investment: 10+ hours per week for comprehensive analysis

For Institutional/Professional Use​

Enterprise Setup:

  • Glassnode Enterprise: Custom solutions and API access
  • CryptoQuant Enterprise: Institutional-grade data and support
  • Multiple Platform Integration: Combine all major platforms
  • Focus: Systematic, scalable analysis processes

Monthly Budget: $500+ Time Investment: Full-time analysis capability

Practical Tips for Getting Started​

Week 1: Foundation Building​

  1. Create free accounts on Glassnode and CryptoQuant
  2. Explore basic charts - start with Bitcoin MVRV Z-Score
  3. Learn to read the data - understand what high and low values mean
  4. Set up one simple alert - try MVRV Z-Score below -1.5

Week 2-4: Expanding Knowledge​

  1. Add more metrics - Puell Multiple, exchange flows
  2. Compare different time periods - daily vs weekly vs monthly views
  3. Start tracking patterns - notice how metrics behave during market cycles
  4. Set up additional alerts - exchange flow alerts and whale movements

Month 2+: Advanced Application​

  1. Combine multiple indicators - don't rely on just one metric
  2. Track your predictions - keep notes on what the data suggested vs what happened
  3. Refine your alerts - adjust thresholds based on experience
  4. Consider paid upgrades - if you're finding value, invest in better tools

Common Beginner Mistakes to Avoid​

  • Don't rely on just one indicator - always use multiple data points
  • Don't ignore market context - on-chain data works best with traditional analysis
  • Don't over-trade on signals - these are medium to long-term indicators
  • Don't ignore risk management - data analysis doesn't guarantee profits