Insights into Data 02 OKX Coinglass Uncovering Value Data and Cultivating Sophisticated Trading Mindset
The different dimensions of data indicators may be undervalued in the cryptocurrency market, but they have relatively important value for market analysis and investment decision-making. The OKX strategy team points out several dimensions of data indicators that may be undervalued in the cryptocurrency market and have relatively important value for market analysis and investment decision-making:
1. ETF inflow and outflow of funds
The flow of funds in and out of cryptocurrency ETFs can reflect institutional investors’ market attitudes. A large amount of funds flowing into ETFs usually indicates that institutional investors are optimistic about the market outlook, while fund outflows may indicate a weakening of confidence in the market. Analyzing the fund flow of ETFs can help users judge the medium to long-term trend of the market.
2. Options market data
Options market data includes implied volatility, the open interest of call and put options, etc. These data reflect the market’s expectations for future price volatility. Options market data can provide forward-looking indicators of market sentiment. For example, changes in implied volatility may signal significant price volatility, and an increase in call options may indicate a bullish market expectation.
3. Stablecoin flows
The inflow and outflow of stablecoins (such as USDT, USDC) can reflect market fund flows and investors’ hedging needs. When a large amount of stablecoins flows into the exchange, it may indicate that investors are preparing to buy cryptocurrencies; conversely, stablecoin outflows from the exchange may indicate that investors are cashing out and leaving the market. Analyzing stablecoin flows can provide clues about fund trends.
4. Network effect metrics
Network effect metrics include active user numbers, developer activity, social media attention, etc., which reflect the network effect and ecosystem health of blockchain projects. Strong network effects usually indicate higher project stickiness and growth potential, suitable for medium to long-term investment decisions.
5. DeFi activity metrics
This includes Total Value Locked (TVL), the number of users in DeFi protocols, lending and liquidity provision conditions, etc. DeFi activity metrics reflect the health and growth potential of the decentralized finance market. High TVL and active user participation usually indicate strong demand and growth potential in the DeFi market.
How to cultivate a more scientific trading mindset?
The Coinglass Research Institute suggests that cultivating a scientific trading mindset requires systematic learning and practice. Here are some mature methodologies:
1. Maintain objectivity and rationality
2. Learn data analysis and risk management
3. Accumulate trading experience
4. Maintain an open mind
5. Establish trading rules
6. Conduct simulated trading
7. Learn quantitative analysis
8. Regularly review and adjust strategies
OKX strategy team: Based on our experience, to become a mature investor, one needs to enhance three abilities:
1. Master basic data and indicators
2. Cultivate analysis and decision-making abilities
3. Practice and continuous improvement
In conclusion, the OKX column “Insight into Data” aims to provide systematic data methodologies for traders with different levels of experience to better grasp market trends and make wise trading decisions. In future articles, we will continue to explore more practical data usage/analysis methods for traders to reference in their investment learning.
Risk warning and disclaimer: This article is for reference only. This article represents the author’s opinion and does not represent the position of OKX. This article is not intended to provide (i) investment advice or investment recommendations; (ii) an invitation or solicitation to buy, sell, or hold digital assets; (iii) financial, accounting, legal, or tax advice. Holding digital assets (including stablecoins and NFTs) involves high risk and may experience significant fluctuations. You should carefully consider whether trading or holding digital assets is suitable for your financial situation. For your specific situation, please consult your legal/tax/investment professional. You are responsible for understanding and complying with applicable local laws and regulations.
Coinglass
OKX
