Crypto Data Strategy

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It’s very easy to get caught up in crypto hype and make bad investment decisions.  This is why a Crypto Data Strategy is a much better method for determining great projects to invest in.  The basic idea is to collect objective data on cryptocurrencies from several sources, add this data to the spreadsheet below, then sum up all the data to find the best crypto projects.  One of the best reasons to utilize a data driven investment approach is to mitigate risk and remove emotion from the equation.  Experience has shown that emotional investing can very often lead to unnecessary losses.  While data aggregation strategies like this drastically reduce the emotions involved in making investment choices.  Over the long term, a strategy like this almost always beats an emotional strategy.  After all, if you fail to plan, then you plan to fail.

Crypto Data Strategy Tutorial Video:

Latest Crypto Ratings:

All the data currently collected for the Crypto Data Strategy can be found in the spreadsheet below.  Feel free to download a copy for yourself or just return to this page for updates.

Feel free to comment on the strategy and give your opinion.  If you know any other reliable data sources to use for this strategy, please share.  Together, we can make this spreadsheet a great way for everyone to find the best crypto projects to invest in.

This data should only be used as a tool to expand your own research.  Crypto Renegade is not a financial advisor and everyone should do their own due diligence before making investment choices.

CryptoDataAggregation.xlsx

Data Sources Used For Crypto Data Strategy

All the sites below feed in different sets of data for cryptocurrencies.  This data is then aggregated together to find the best crypto projects to invest in.

https://coinmarketcap.com/CoinMarketCap has been around for many years and is one of the most popular crypto sites in the world.  This site is used for Market Cap data which is a great starting point in determining the best crypto projects.  This data shows us the largest and most trusted projects that people are willing to invest in and hold for the long term. Be sure to exclude any fiat pegged cryptos like Tether since their purpose is to be a stable coin for trading, not investing.

https://onchainfx.com/OnChainFX is used to collect data for a project’s network value and development activity.  To determine a project’s network value, we can look at the number of active addresses and the number of daily on chain transactions.  OnChainFX also gives data on the NVT Ratio which is a interesting way to determine if a crypto project is undervalued.  Most crypto projects also make their source code openly available on Github, which OnChainFX feeds into its site to display various metrics for each project.  One of the most important factors to consider in determining a project’s development activity, is to see how often developers are committing code to the project’s Github repository.  OnChainFX collects this data for the past 90 days and the past year.  This data is used for the Crypto Data Strategy since these 2 metrics can give us a good idea for how strong the development team is and how dedicated they are to updating their software.

https://www.coingecko.com/CoinGecko is a well favored site for gathering data on several important crypto metrics.  The Crypto Data Strategy uses their development and community scores.  CoinGecko’s development score is very useful since it includes a lot more GitHub data than just commits in determining the overall strength of the development team.  Their community score is another useful metric in determining the number of Reddit Subcribers, Facebook Page Likes and Twitter Followers each project has.  Both of these metrics are critical in picking top projects that have strong support from their development team and community.

https://nomics.com/ – Nomics is a great site for collecting data on cryptocurrency trading volume.  Trading volume is a key metric in determining the liquidity of a project’s coin.  As a project matures, its coin will be listed on more exchanges, which will help provide more liquidity for the project.  This acceptance by the market helps determine if a coin is growing and allows for more trust by market participants.  The Crypto Data Strategy uses the trading volume data for the past month and year.

https://solume.io/ – Solume is another fantastic site that aggregates social volume and sentiment data for cryptocurrencies.  They feed in data from Twitter, Reddit and Bitcointalk.org. They use this data to count the number of posts that mention crypto projects as well as determining the overall sentiment of the posts.  Social volume and sentiment is important in determining the strength of a project’s community.  As with most crypto projects, the strength of the community is extremely important for continued growth and acceptance.  The Crypto Data Strategy uses the volume and sentiment data from the last week to help find top crypto projects.

https://coincheckup.com/analysis/CoinCheckUp is one of several crypto rating sites that are used for the Crypto Data Strategy.  All the crypto rating sites that were chosen are part of Binance’s growing list of professional rating sites.  The Crypto Data Strategy uses the ratings that these sites give to help broaden the set of data that’s used to find the best crypto projects.

Here are the other three crypto rating sites that are currently used for this strategy:

TokenInsight – https://tokeninsight.com

FlipSide Cryptohttps://www.flipsidecrypto.com

Shulian Ratings – http://www.shulianratings.com/ratings

DPRating – https://www.dprating.com/en

Adding The Data Together To Find The Best Cryptocurrency

The Aggregate Score tab is where all the data above is added together and ranked highest to lowest.  The current scores for each tab are shown below, allowing for a max score of 22 points at this time.

  • Market Cap – 3 Points
  • NVT Ratio – 1 Point
  • Active Addresses – 1 Point
  • On Chain Transactions – 1 Point
  • 90 Day Commits – 1 Point
  • Annual Commits – 1 Point
  • Development Score – 2 Points
  • Community Score – 2 Points
  • Monthly Trading Volume – 2 Points
  • Annual Trading Volume – 2 Points
  • Social Volume – 1 Point
  • CoinCheckUp Top Coins – 1 Point
  • TokenInsight Top Coins – 1 Point
  • FlipSide Top Coins – 1 Point
  • Shulian Ratings Top Coins – 1 Point
  • DPRating Top Coins – 1 Point

You can download the spreadsheet above and modify the data and the formula if you want to try different weightings or lists.  Please share your thoughts on this strategy and the ranking formula that’s used.  If you have additional sources of information that could be added to this spreadsheet, please share with all of us and the information will be reviewed to see if it can complement the current strategy.

Be sure to check out our other Crypto Strategy Articles:

The strategy in this article is best combined with the other strategies Crypto Renegade teaches.


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

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When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing.

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If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

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For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

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What do you think about the Crypto Data Strategy?  Do you have any questions about it?  Be sure to leave a comment below.

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