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Glossary (Exchange Flows)
Entry into Exchange flow/indicator
Data/Indicator | Definition | Interpretation |
|---|---|---|
Exchange | -An exchange is where the actual trading events occur, which reflects the demand side -The basic information and why it matters | -Place where the price is mostly determined -In relation to fiat |
Amount of coin deposited/withdrawn into/from the exchange wallets |
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The total amount of coins held in the exchange addresses |
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The number of unique addresses making inflow/outflow transactions of exchanges |
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The total number of deposits/withdrawals transactions of the exchange |
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This section identifies the lookout point for individual indicators. These indicators could be divided by their identity and the usefulness in trading. Each data tracks each feature of exchanges and put together they cover multiple aspects and capture movements in exchange relatively precisely.
Checking the flow into the exchange is a great way to keep track of coins that could be sold or to be held in long-term purpose
Checking the total reserve in the exchange is a great way to figure out how scarce the coin is in the market (exchange)
Checking the active address count or transactions is a great way to figure out how many addresses are participated in the movement in the price and find out the sentiment behind it
It is wise to take a look at each indicator according to the number stated above.
CryptoQuant always try to be precise and take immediate actions but addresses that are newly created or not labeled need some time to be corrected.
For example, large amount of bitcoin could be seen to get its way out of the exchange but it could be just an internal wallet change. It gives an impression of an outflow but instead it is just the same bitcoin staying in the same exchange.
However, the accuracy of labeling and tracking exchange addresses continues to increase making the flow and indicators in the same way. Also, the heuristic running to label the exchange addresses continues to evolve around time.