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Stop Guessing, Start Trading: The Token Metrics API Advantage

Announcements

Big news: We’re cranking up the heat on AI-driven crypto analytics with the launch of the Token Metrics API and our official SDK (Software Development Kit). This isn’t just an upgrade – it's a quantum leap, giving traders, hedge funds, developers, and institutions direct access to cutting-edge market intelligence, trading signals, and predictive analytics.

Crypto markets move fast, and having real-time, AI-powered insights can be the difference between catching the next big trend or getting left behind. Until now, traders and quants have been wrestling with scattered data, delayed reporting, and a lack of truly predictive analytics. Not anymore.

The Token Metrics API delivers 32+ high-performance endpoints packed with powerful AI-driven insights right into your lap, including:

  • Trading Signals: AI-driven buy/sell recommendations based on real-time market conditions.
  • Investor & Trader Grades: Our proprietary risk-adjusted scoring for assessing crypto assets.
  • Price Predictions: Machine learning-powered forecasts for multiple time frames.
  • Sentiment Analysis: Aggregated insights from social media, news, and market data.
  • Market Indicators: Advanced metrics, including correlation analysis, volatility trends, and macro-level market insights.

Getting started with the Token Metrics API is simple:

  1. Sign up at www.tokenmetrics.com/api
  2. Generate an API key and explore sample requests.
  3. Choose a tier–start with 50 free API calls/month, or stake TMAI tokens for premium access.
  4. Optionally–download the SDK, install it for your preferred programming language, and follow the provided setup guide.

At Token Metrics, we believe data should be decentralized, predictive, and actionable. 

The Token Metrics API & SDK bring next-gen AI-powered crypto intelligence to anyone looking to trade smarter, build better, and stay ahead of the curve. With our official SDK, developers can plug these insights into their own trading bots, dashboards, and research tools – no need to reinvent the wheel.

Research

Building the On-Chain S&P 500: A Technical Deep Dive into TM100 | Crypto Indices

Token Metrics Team
10
MIN

Welcome to a deep dive into the evolution of crypto portfolio management and how innovative on-chain indices are shaping the future of digital asset strategies. As the crypto landscape matures, new methodologies emerge to address longstanding challenges and unlock new opportunities for investors and developers alike.

The Evolution of Crypto Portfolio Management

We've been working toward this launch for several years, through multiple pivots and market cycles. What started as a centralized exchange concept evolved into a fully on-chain solution as we observed the market's clear trajectory toward decentralized infrastructure. The TM100 index represents our most significant product development to date: a non-custodial, cross-chain crypto index with integrated risk management.

The crypto market has matured considerably since 2017. We've collectively experienced the pattern: massive rallies followed by 70-95% drawdowns, the challenge of maintaining discipline during euphoria, and the difficulty of executing systematic strategies when emotions run high. This cycle presents unique characteristics—it's become intensely narrative-driven and trading-focused, with leadership rotating weekly rather than quarterly.

The Core Problem

Traditional crypto portfolio management faces several structural challenges:

  • Execution Complexity: Acquiring exposure across multiple blockchains requires navigating different exchanges, handling KYC requirements, managing multiple wallets, and executing cross-chain bridges. Even with institutional access, certain exchanges remain unavailable due to regulatory constraints, forcing reliance on OTC desks with varying asset availability.
  • Narrative Velocity: This cycle moves faster than previous ones. What works in Q1 may be obsolete by Q2. Bitcoin dominance fluctuates, sector leadership rotates rapidly (we've seen AI, memes, DeFi, RWAs all take turns), and weekly rebalancing has become necessary where quarterly sufficed before.
  • Drawdown Management: The most sophisticated analysis means little if you can't execute the exit. Behavioral finance research consistently shows that humans struggle to sell winning positions or admit mistakes on losing ones. Automation removes the emotional component entirely.
  • Access and Custody: Every centralized platform introduces counterparty risk, as demonstrated by FTX, Celsius, and BlockFi. The industry learned "not your keys, not your crypto" the hard way.

Technical Architecture

Multi-Chain Infrastructure

The TM100 operates across seven blockchains: Ethereum, Base, Binance Smart Chain, Polygon, Avalanche, Arbitrum, and Solana. This represents six EVM-compatible chains plus Solana, covering the vast majority of liquid crypto assets.

We use wrapped derivatives (WBTC instead of BTC, WETH instead of ETH) to standardize operations across EVM chains. All funds are held in a master vault on Base (selected for lower transaction costs), with sub-vaults on other chains holding underlying assets.

Selection Methodology

The index tracks the top 100 tokens by market capitalization, filtered through two critical criteria:

  • Liquidity Floor: Minimum 300k TVL in AMM pools. This ensures executable trades without excessive slippage.
  • Circulating Supply: Minimum 25% circulation. This filters out low-float VC projects prone to unlock dumps.

Market cap weighting determines position sizing, with weekly rebalancing to capture narrative shifts. Our backtesting suggests 5-15% portfolio turnover weekly to monthly, depending on market conditions.

The Risk Management Layer

This is where the product differentiates from passive indices. We've integrated our market indicator to create a risk-off mechanism:

  • Bullish Signal: Full allocation to filtered top 100 tokens, rebalanced weekly.
  • Bearish Signal: Exit to yield-bearing assets (Sky stablecoin at approximately 4% yield, PAX Gold).

The system doesn't try to catch falling knives. When the market indicator flips bearish, the index systematically exits. This addresses what we consider the primary challenge in crypto: not missing the rally, but avoiding the round trip.

Smart Contract Standards

We're using ERC-4626, Ethereum's tokenized vault standard. This provides:

  • Standardized deposit/withdrawal interfaces
  • Composability with other DeFi protocols
  • Auditable, battle-tested contract patterns
  • Clear ownership representation via index tokens

The delegated actions feature (ERC-7682) allows automated rebalancing while maintaining non-custodial status. Users grant permission for the vault to rebalance but retain ultimate control and withdrawal rights.

Security Infrastructure

Given the target scale (we're planning for significant AUM), security requires multiple layers:

  • Wallet Layer (Privy): Handles authentication and wallet abstraction. Supports social logins, email, and traditional wallet connections. Used by major platforms including Hyperliquid and Polymarket.
  • Key Management (Turnkey): Secure private key infrastructure. Keys never exist in plaintext on application servers.
  • Contract Audits (Cantina/Spiritbit): Comprehensive smart contract audits before launch, with ongoing review processes.
  • Real-Time Monitoring (Hypernative): This proved expensive but necessary. Hypernative's AI-powered firewall monitors transactions in real-time and can pause contracts if suspicious activity is detected. Built by Israeli cybersecurity engineers, it's used by protocols like Uniswap. Given potential AUM, we couldn't rely solely on pre-deployment audits.

DeFi Composability: The Real Innovation

The index token itself becomes a tradable, yield-bearing, composable asset. This creates possibilities beyond traditional index funds:

Primary Markets

  • Index tokens can trade on DEXs (Uniswap, Aerodrome) and potentially centralized exchanges. This solves the liquidity problem that traditional funds face—your ownership stake can be exited anytime at market prices.
  • Yield Separation (Pendle): Platforms like Pendle allow separating principal from yield. Institutional investors could buy the principal token (price exposure without yield), while others buy yield tokens (yield without price exposure). This requires approximately $2 million+ TVL for listing.
  • Collateralization (Morpho, Euler): Money markets could accept index tokens as collateral. Users maintain full crypto market exposure while borrowing against their position—capturing upside without selling, potentially using borrowed capital for other opportunities.
  • Treasury Integration: DAOs and protocols often hold idle treasury assets. Rather than choosing between stablecoins (no upside) or Bitcoin (concentrated risk), treasuries could hold diversified crypto exposure via index tokens, with automated bear market protection.

API Access

We're integrating TM100 into our developer API. AI agents built on Virtual Protocol or Eliza can programmatically invest in the index. During our European hackathon, treasury management emerged as the most popular use case.

This composability creates network effects. As TVL grows, more DeFi protocols integrate the token, attracting more capital, which enables further integrations—a sustainable flywheel.

Performance Analysis

Disclaimer: All results are backtested simulations, not live trading results.

Testing from 2017 to present:

  • Annualized Return: 104% (no fees), 85% (with fees)
  • Volatility: 45%
  • Sharpe Ratio: 1.58
  • Sortino Ratio: 2.0
  • Maximum Drawdown: 41%

The maximum drawdown metric deserves emphasis. Bitcoin historically shows approximately 75% peak-to-trough drawdowns. A 41% maximum drawdown represents significant downside protection while maintaining similar Sharpe ratios to Bitcoin (around 1.5 for BTC this cycle).

Across cycles, Bitcoin's maximum drawdown tends to decrease by about 10% each cycle: from roughly 95% two cycles ago, to around 85% last cycle, and an estimated 75% in this cycle. The asset is maturing, attracting institutional capital with lower volatility tolerance. Altcoins generally lag Bitcoin by one cycle in this pattern, with Ethereum’s drawdown characteristics mirroring Bitcoin's from a prior cycle.

Fee Structure and Economics

Management Fee: 1% annually, accruing on-chain (likely daily). Performance Fee: 15% quarterly, with a high watermark. This means fees are only charged on new profits. If the index increases then falls, no fees are due until it surpasses its previous peak.

For context, our Token Metrics Ventures fund charges 2% management and 20% performance. The index’s lower fees are due to operational efficiencies once smart contracts are deployed.

TMAI Integration

Our native token reduces fees through staking scores:

  • Score of 10: Performance fee drops to 5%
  • Score of 10: Management fee drops to 0.5%
  • Ten percent of platform fees flow to the DAO: 50% for TMAI buyback and burn, and 50% distributed to stakers proportional to veTM holdings.
  • This setup aligns incentives: users who stake and participate benefit from fee discounts and revenue sharing.

    Liquidity and Execution

    Phase 1 (Current): LI.FI integration for smart order routing. Handles trades up to around $25,000 efficiently with minimal slippage.

    Phase 2 (Q4 target): Market maker integrations (Wintermute, Amber) for larger orders via request-for-quote. Orders between $25,000 and $250,000 will compare on-chain quotes against market maker quotes for optimal execution.

    Phase 3 (Planned): Full API access for programmatic trading and platform integration. Current methods pool capital over 24 hours to optimize gas and price impact; future iterations will execute more granular trades staggered throughout the day.

    Market Context and Timing

    We project a cycle peak around spring to fall 2026, roughly one year from now. Our key targets include:

    • Bitcoin at approximately $140-145K (from recent levels)
    • Total crypto market cap between $8-14 trillion
    • Maximum drawdown around 65% from peak

    This cycle is characterized by intense trading activity, with perpetual platforms like Hyperliquid, Bybit, and Binance dominating volume. Narrative rotation occurs weekly, and every major exchange is launching on-chain alternatives, reflecting shifting liquidity flows.

    Our strategic focus has shifted from new venture investments to liquid strategies, given the challenges posed by high-FDV launches and retail behavior. Regulatory developments and stablecoin adoption are accelerating tokenization and traditional asset integrations.

    As a cyclical asset class, crypto's resilience depends on timing accurately. If the cycle extends beyond 2026, the index remains deployed; if the market turns bearish, the system withdraws to preserve capital. This adaptive approach aims to leverage both uptrends and downturns.

    Implementation Details

    The early access process involves:

    1. Form Submission: Interest form to gauge demand and plan infrastructure scaling.
    2. Wallet Funding: Users fund via existing wallets or fiat ramps like Moonpay or Coinbase, as non-custodial platforms require.
    3. Delegated Actions: Permissions granted for rebalancing actions.
    4. Token Receipt: Receive index tokens representing ownership.

    The platform provides:

    • Real-time holdings across chains
    • Weekly rebalancing history
    • Quarterly performance fee calculations
    • Market indicator status (risk-on/risk-off)
    • Transaction history exports for tax reporting

    Once received, index tokens are immediately tradable and composable, supporting a variety of DeFi strategies.

    Beyond TM100: Future Considerations

    While initial plans included multiple sector-specific indices (AI, memes, DeFi), liquidity fragmentation and lower-than-expected volume have shifted focus to a single, highly liquid index. Benefits of this approach include:

    • Deeper liquidity pools
    • Enhanced DEX integration
    • Attractiveness to protocols requiring minimum liquidity
    • Simpler user experience

    Future concepts include:

    • Listing index tokens on traditional exchanges or asset management platforms
    • Derivatives, options, and structured products based on index tokens
    • Integration with institutional custody and compliance solutions

    Why This Matters

    The crypto market has long sought robust, on-chain infrastructure to address retail and institutional needs. Challenges include concentrated bets, custody risks, and high fees. Many high-profile failures underscored the importance of transparency, automation, and non-custodial design.

    The Token Metrics TM100 aims to provide a systematic, transparent, and secure solution for diversified exposure, harnessing DeFi’s composability and automation to support a mature market infrastructure.

    Technical Roadmap

    Current (Early Access):

    • Core index deployment on Base
    • LI.FI integration for optimized order routing
    • Dashboard with analytics
    • Manual onboarding and support

    Q4 2024:

    • Market maker integrations
    • Automation of execution algorithms
    • Enhanced onboarding flow
    • Referral program launch

    Q1 2025:

    • Full API release
    • Additional protocol integrations
    • Enhanced analytics dashboard
    • Mobile app considerations

    Beyond 2025:

    • Yield options and derivatives
    • Cross-protocol composability
    • Institutional custody solutions

    Conclusion

    Building on-chain infrastructure involves unique tradeoffs: immutability, gas costs, and layered security. By approaching TM100 as foundational infrastructure, we aim to provide a primitive that supports innovation and institutional adoption alike. As crypto matures, this decentralized, secure, and composable approach enables new sophistication in digital asset management.

    The code is entering final audits. Early access onboarding begins soon. The foundational infrastructure is ready to serve the evolving demands of the crypto ecosystem.

    For early access information and technical documentation, visit our platform. All performance data represents backtested simulations and should not be considered indicative of future results. Cryptocurrency investments carry substantial risk including potential total loss of capital.

Research

The Self-Custodial Crypto Index: Why You Don't Need to Trust Us With Your Crypto

Token Metrics Team
12
MIN

"Not your keys, not your crypto" has become the defining mantra of crypto's sovereignty movement. Yet most crypto indices require exactly what the industry warns against: trusting a third party with custody of your assets. You deposit funds into their platform, they promise to manage it responsibly, and you hope they're not the next FTX, Celsius, or BlockFi.Token Metrics built TM Global 100 on a radically different principle: you shouldn't need to trust us. The index operates through self-custodial embedded wallets where you maintain complete control of your funds. Token Metrics cannot access your crypto, cannot freeze your account, cannot require permission to withdraw, and cannot misuse your capital—not because we promise not to, but because the architecture makes it impossible.

This isn't marketing language. It's verifiable through on-chain examination of the smart contract wallet system. Understanding why this matters requires reviewing crypto's history of custodial failures—and understanding how Token Metrics' approach eliminates these risks entirely while maintaining sophisticated index functionality.

The Custodial Crisis: When "Trust Us" Fails

Crypto's short history is littered with custodial disasters. Each promised security, each broke that promise, and each reinforced why self-custody matters.

The Hall of Shame: Major Custodial Failures

  • Mt. Gox (2014): Once handled 70% of all Bitcoin transactions. Declared bankruptcy after losing 850,000 BTC (~$450M at the time). Users had no recourse—funds simply vanished. Lesson: Size and market dominance don't guarantee security.
  • QuadrigaCX (2019): Canadian exchange collapsed after founder's death. $190M in customer funds inaccessible. Revealed funds had been misappropriated for years. Lesson: Single points of failure create catastrophic risk.
  • Celsius Network (2022): Promised 18%+ yields on deposits. Filed bankruptcy owing $4.7B to users. Revealed massive mismanagement and risky lending. Users waited years for partial recovery. Lesson: High yields often mask unsustainable business models.
  • FTX (2022): Third-largest exchange by volume. Collapsed in 72 hours after revealing $8B hole in balance sheet. Customer deposits illegally used for proprietary trading. Criminal charges against leadership. Lesson: Even "reputable" custodians can commit fraud.
  • BlockFi (2022): Lending platform with 650,000+ users. Bankruptcy following exposure to FTX and Three Arrows Capital. Users became unsecured creditors. Lesson: Custodial services create contagion risk across platforms.

The Common Pattern

  1. Trust establishment: Platform builds reputation through marketing, partnerships, and perceived legitimacy.
  2. Deposit accumulation: Users transfer custody of assets based on trust.
  3. Mismanagement/fraud: Platform misuses funds through incompetence or malice.
  4. Crisis discovery: Problem becomes public, often suddenly.
  5. Withdrawal freeze: Platform blocks user access to protect remaining assets.
  6. Bankruptcy: Legal proceedings that recover pennies on the dollar.

Token Metrics analyzed 23 major crypto custodial failures from 2014-2024. Average customer recovery: 31 cents per dollar. Average recovery timeline: 2.7 years. Percentage of cases with criminal charges: 39%. The data is clear: custodial risk isn't theoretical. It's the largest predictable loss vector in crypto investing.

What Self-Custody Actually Means

Self-custody means you—and only you—control the private keys that authorize transactions from your wallet. No intermediary can access, freeze, seize, or require approval to move your funds.

The Key Principles

  • Principle 1: Exclusive Control Traditional custody: Provider holds private keys. You request withdrawals. They approve or deny. Self-custody: You hold private keys (or control smart contract wallet). You authorize transactions. No third-party approval required.
  • Principle 2: On-Chain Verification Custodial balances: Provider's database says you own X tokens. You trust their accounting. Self-custodial balances: Blockchain shows your wallet address owns X tokens. Publicly verifiable, tamper-proof.
  • Principle 3: Counterparty Independence Custodial services: If provider goes bankrupt, your funds are trapped in legal proceedings. Self-custody: If a service provider disappears, your funds remain accessible in your wallet.
  • Principle 4: Censorship Resistance Custodians: Can freeze accounts, block transactions, or seize funds based on their policies or government requests. Self-custody: No entity can prevent you from transacting (subject only to blockchain protocol rules).

The Traditional Self-Custody Tradeoffs

Pure self-custody (hardware wallets, MetaMask, etc.) provides maximum security but historically came with significant operational burden:

  • Complex setup processes (seed phrases, hardware wallets)
  • Manual transaction signing for every action
  • No recovery if seed phrase is lost
  • Technical knowledge requirements
  • Limited functionality (no automated strategies)

These tradeoffs meant most users chose custodial services for convenience—accepting counterparty risk for operational simplicity. Token Metrics' embedded wallet architecture eliminates this false choice.

Token Metrics' Self-Custodial Architecture

TM Global 100 uses embedded smart contract wallets that provide self-custody without traditional complexity. Here's how it works:

Smart Contract Wallets Explained

Traditional crypto wallets are "externally owned accounts" (EOAs)—addresses controlled by a single private key. Lose that key, lose the funds. Smart contract wallets are programmable accounts with built-in security features and recovery mechanisms.

  • Multi-Factor Authentication: Instead of a single private key, wallet access uses email verification, biometrics, or social login. The cryptographic keys are sharded across multiple secure enclaves—no single point of compromise.
  • Social Recovery: If you lose access (lost phone, forgotten password), designated guardians or recovery mechanisms restore access without needing a 12-word seed phrase stored on paper.
  • Programmable Security: Set spending limits, require multi-signature for large transactions, whitelist addresses, or implement time-locks. Security policies impossible with traditional wallets.
  • Account Abstraction: Gas fee management, transaction batching, and network switching happen automatically. Users see simple dollar amounts and confirmations, not hexadecimal addresses.

Who Controls What

  • You Control: Wallet access (through your authentication), transaction authorization (all buys/sells require your approval), fund withdrawals (move to any address, anytime), recovery mechanisms (designate guardians if desired).
  • Token Metrics Controls: Index strategy (what TM Global 100 holds), rebalancing execution (when signals say to rebalance), smart contract development (code underlying the system).

Token Metrics CANNOT:

  • Access your wallet without your authentication
  • Withdraw your funds to any address
  • Freeze your account or block transactions
  • Require approval to move your assets
  • Seize funds under any circumstances

This separation is enforced by smart contract architecture, not trust. The code determines what's possible—and accessing user funds isn't possible, even if Token Metrics wanted to.

On-Chain Verification

Every TM Global 100 wallet is a publicly visible blockchain address. Using blockchain explorers (Etherscan, etc.), anyone can verify:

  • Wallet balance matches what the interface shows
  • Transaction history matches logged rebalances
  • Funds are actually in user-controlled wallet, not Token Metrics' custody
  • Smart contract permissions don't allow Token Metrics withdrawal authority

This transparency means trust becomes optional—you verify rather than trust.

The Practical Reality: How Self-Custody Works Daily

Token Metrics designed TM Global 100's self-custodial experience to be invisible to users while maintaining full sovereignty.

Initial Setup (90 seconds)

  • Navigate to TM Global 100 on Token Metrics Indices hub
  • Click "Buy Index"
  • Create embedded wallet: Provide email or use social login (Google, Apple)
  • Set authentication: Biometrics or password
  • Fund wallet: Transfer crypto or use on-ramp to purchase
  • Confirm purchase: Review TM Global 100 details and approve

Your wallet is created, you control it, and you've bought the index—all while maintaining self-custody.

Ongoing Operations (Zero Custody Risk)

Weekly Rebalances: Token Metrics' smart contract initiates rebalance based on strategy rules. Transaction occurs within YOUR wallet (not custodial account). You can see the transaction on blockchain explorers. Funds never leave your control—they just recompose from BTC+ETH+... to updated weights.

Regime Switches: When signals turn bearish, YOUR wallet sells crypto and holds stables. When signals turn bullish, YOUR wallet buys crypto from stables. Token Metrics triggers the transaction, but it executes in your self-custodial wallet.

Withdrawals: At any time, withdraw some or all funds to any address. No approval needed from Token Metrics. It’s a standard blockchain transaction—Token Metrics can't block it.

What Happens If Token Metrics Disappears?

Imagine Token Metrics goes bankrupt tomorrow. With custodial services, your funds are trapped. With TM Global 100:

  • Your wallet still exists (it's on-chain, independent of Token Metrics)
  • Your holdings remain accessible (you can view balances on blockchain explorers)
  • You can transfer funds (to any wallet/exchange you choose)
  • You can continue holding (the tokens don't disappear)
  • You can't access automated rebalancing (that requires Token Metrics' smart contracts), but your capital is 100% safe and accessible.

This is the power of self-custody: no dependency on the service provider's solvency or operations.

Comparison to Custodial Crypto Indices

Token Metrics isn't the only crypto index provider. How does TM Global 100's self-custody compare to alternatives?

Custodial Index Providers

  • Typical Structure: Deposit funds to provider's platform. Provider holds crypto in their custody. You own "shares" or "units" representing claim on assets. Withdrawal requires provider approval and processing time.
  • Advantages: Familiar model for traditional finance users, May offer insurance (though rarely covers full balances), Simple tax reporting through provider.
  • Disadvantages: Counterparty risk, Provider failure means lost funds, Withdrawal restrictions, Can freeze accounts, Delay withdrawals, Regulatory risk, Government can seize provider’s assets, Transparency limits, Can't verify actual holdings on-chain, Censorship vulnerability, Can block your access unilaterally.

Self-Custodial Model

Funds remain in your self-custodial smart contract wallet. You maintain control via private authentication. Token Metrics provides strategy execution, not custody. Withdrawal is immediate—it's already your wallet.

  • Advantages: Zero counterparty risk, No withdrawal restrictions, Move funds any time, Regulatory isolation, Transparent on-chain holdings, Censorship resistance.
  • Tradeoffs: User responsibility for wallet management, No traditional insurance, You handle tax reporting, Logs are provided.

For investors who understand crypto's core value—financial sovereignty—the self-custodial model is strictly superior. Custodial convenience isn't worth systemic risk.

Trustless by Design

Token Metrics established itself as the premier crypto analytics platform by providing exceptional research to 50,000+ users—building trust through performance, not promises. But with TM Global 100, Token Metrics deliberately designed a system where trust is unnecessary.

Traditional Financial Services

"Trust us to handle your money responsibly. We have reputation, insurance, and regulatory oversight."

Crypto's Original Vision

"Don't trust, verify. Use cryptographic proof and transparent blockchains to eliminate need for trust."

TM Global 100

"We provide excellent research and systematic execution. But you don't need to trust us with custody—verify your holdings on-chain, control your keys, withdraw anytime."

This philosophy aligns with crypto's foundational principles while delivering institutional-grade sophistication.

How Token Metrics Makes Money Without Custody

Traditional indices profit by holding client assets and taking fees. Token Metrics profits differently: Platform Fee: Annual percentage (1.5-2.0%) charged from YOUR holdings in YOUR wallet. No custody required to collect fees—they're automatically deducted from the smart contract wallet based on holdings value. Not Revenue Sources for TM Global 100: Lending out client funds (we don't hold them), Interest on deposited cash (there is no deposit), Proprietary trading with client capital (we can't access it), Rehypothecation (impossible without custody). Token Metrics' business model works precisely because we DON'T hold funds. The platform fee compensates for research, development, and operations—without requiring custody or creating counterparty risk.

The Accountability Structure

Self-custody creates natural accountability:

  • Custodial Model: If provider performs poorly, changing is difficult (withdrawal delays, tax events, operational friction). Users stay with mediocre services out of inertia.
  • Self-Custodial Model: If TM Global 100 underperforms expectations, users can withdraw immediately with zero friction. Token Metrics must continuously earn business through performance, not trap users through custody. This alignment of incentives produces better outcomes. Token Metrics succeeds only if TM Global 100 delivers value—not if we successfully retain custody.

Security Without Custodial Risk

Self-custody doesn't mean "no security"—it means security without counterparty risk. Token Metrics implements multiple security layers:

  • Wallet Security: Multi-Factor Authentication, Encryption, Rate Limiting, Device Fingerprinting, Session Management.
  • Smart Contract Security: Audited Code, Immutable Logic, Permission Controls, Upgrade Mechanisms.
  • Operational Security: No Centralized Custody, Separation of Duties, Monitoring Systems, Incident Response.
  • Recovery Security: Social Recovery, Time-Locked Recovery, Guardian Options, No Single Point of Failure.

This comprehensive security operates without Token Metrics ever holding custody—proving security and sovereignty aren't mutually exclusive.

The Regulatory Advantage

Self-custody provides regulatory benefits beyond security:

  • Reduced Compliance Burden: Token Metrics doesn't need custodial licenses or maintain costly compliance infrastructure for holdings we don't control.
  • Jurisdictional Flexibility: Users can access TM Global 100 based on their local regulations without Token Metrics needing approval in every jurisdiction (though we maintain appropriate licensing for our services).
  • Asset Protection: Government actions against Token Metrics don't freeze user funds—they're already in user wallets.
  • Portability: Regulatory changes in one region don't trap users—they control their funds and can move them freely.

As crypto regulations evolve globally, self-custodial models will likely face less restrictive treatment than custodial alternatives—another reason Token Metrics chose this architecture.

Decision Framework: Custodial vs. Self-Custodial Indices

  • Choose self-custodial indices (TM Global 100) if: You value financial sovereignty, censorship resistance, want on-chain verification, eliminate counterparty risk, are comfortable with wallet authentication, and desire instant withdrawal.
  • Consider custodial alternatives if: You prefer traditional finance models, want FDIC-style insurance (though limited), need institutional custody for compliance, are uncomfortable managing wallets, or prioritize traditional tax reporting.

For most crypto investors—especially those who understand why Bitcoin was created—self-custody is non-negotiable. TM Global 100 delivers sophisticated index strategies without compromising this core principle.

Conclusion: Trust Through Verification, Not Promises

The crypto industry has taught expensive lessons about custodial risk. Billions in user funds have vanished through exchange collapses, lending platform failures, and outright fraud. Each disaster reinforced crypto's founding principle: financial sovereignty requires self-custody.

Token Metrics built TM Global 100 to honor this principle. The index provides systematic diversification, weekly rebalancing, regime-based risk management, and institutional-grade execution—all while you maintain complete control of your funds. Token Metrics can't access your crypto, not because we promise not to, but because the smart contract architecture makes it impossible.

This isn't about not trusting Token Metrics. It's about not needing to trust Token Metrics—or anyone else—with custody of your capital. That's how crypto is supposed to work. You verify holdings on-chain. You control withdrawals. You authorize transactions. Token Metrics provides research, signals, and systematic execution. But your crypto stays yours.

As crypto matures, self-custodial infrastructure will become standard—not because it's idealistic, but because custodial alternatives have failed too many times, too catastrophically. Token Metrics is simply ahead of the curve. Not your keys, not your crypto. TM Global 100: your keys, your crypto.

Research

From Research to Execution: Turning Token Metrics Insights Into Trades

Token Metrics Team
8
MIN

You've spent 30 minutes analyzing Token Metrics' AI-powered ratings. VIRTUAL shows 89/100, RENDER at 82/100, JUP at 78/100. The market regime indicator flashes bullish. Your portfolio optimization tool suggests increasing exposure to AI and DePIN sectors. The research is clear: these tokens offer compelling risk-adjusted opportunities.

Then reality hits. You need to: calculate position sizes, open exchanges where these tokens trade, execute eight separate buy orders, track cost basis for each, set rebalancing reminders, monitor for exit signals, and repeat this process as ratings update weekly. Two hours later, you've bought two tokens and added "finish portfolio construction" to your weekend to-do list.

This is the execution gap—the chasm between knowing what to do and actually doing it. Token Metrics surveyed 5,200 subscribers in 2024: 78% reported "not fully implementing" their research-based strategies, with "time constraints" (42%), "operational complexity" (31%), and "decision fatigue" (19%) as primary barriers. The platform delivers world-class crypto intelligence to 50,000+ users, but turning insights into positions remained frustratingly manual—until TM Global 100 closed the loop.

The Research Excellence Problem

Token Metrics established itself as the premier crypto analytics platform through comprehensive, data-driven analysis. The platform provides:

  • AI-Powered Token Ratings: Token Metrics analyzes 6,000+ cryptocurrencies using machine learning models trained on:
    • Technical indicators: Price momentum, volume patterns, trend strength
    • Fundamental metrics: Developer activity, protocol revenue, tokenomics
    • On-chain data: Holder distribution, exchange flows, network growth
    • Market structure: Liquidity analysis, derivatives positioning
    • Sentiment analysis: Social trends, news sentiment, community engagement
  • Each token receives grades from 0-100 across multiple categories: Trader Grade, Investor Grade, Overall Grade, Risk Score.

The power: In Q3 2024, tokens rated 80+ outperformed the market by 47% on average over the following quarter. The research identifies opportunities with statistical edge.

The problem: Knowing VIRTUAL scores 89/100 doesn't automatically put it in your portfolio.

Market Regime Signals

Token Metrics' regime detection analyzes multi-factor conditions to classify market environments as bullish, bearish, or neutral. These signals inform portfolio positioning—should you be risk-on (full crypto exposure) or risk-off (defensive/stablecoins)?

Historical accuracy: Token Metrics' regime signals showed 68-72% directional accuracy over 4-8 week periods across 2022-2024, helping subscribers avoid the worst of bear market drawdowns.

The problem: When the signal flips bearish, you need to manually exit dozens of positions. Most subscribers acknowledged the signal but procrastinated execution—often until too late.

Trading Signals

Beyond broad regime indicators, Token Metrics provides specific entry/exit signals for individual tokens based on technical and fundamental triggers.

Example signals (October 2024):

  • SOL: "Strong buy" at $148 (reached $185 within 6 weeks)
  • RENDER: "Buy accumulation" at $5.20 (reached $7.80 within 8 weeks)
  • LINK: "Take partial profits" at $15.50 (consolidated to $12.20 over 4 weeks)

The problem: By the time you see the signal, research supporting rationale, decide position size, and execute—the entry has moved or the window closed.

Portfolio Optimization

Token Metrics' portfolio tools suggest optimal allocations based on your risk tolerance, time horizon, and conviction levels. They show which tokens to overweight, which to trim, and what overall exposure makes sense.

The insight: "Your portfolio is 45% BTC, 30% ETH, 25% alts. Optimal allocation for your risk profile: 35% BTC, 25% ETH, 40% high-rated alts with 5% in AI agents, 8% DePIN, 12% DeFi, 15% layer-1s."

The problem: Implementing these recommendations requires many trades, rebalancing calculations, tracking new cost basis, and ongoing maintenance.

The Execution Gap: Where Good Research Dies

Token Metrics' internal analysis revealed a striking pattern: subscribers using premium research features showed significantly better token selection (measured by ratings of holdings) but only marginally better performance than casual users. The bottleneck wasn't research quality—it was implementation.

Five Common Execution Failures

  1. Analysis Paralysis: "I spent three hours reviewing ratings and signals. Then I couldn't decide which tokens to prioritize, what position sizes to use, or when exactly to execute. I ended up doing nothing." The paradox: More information should enable better decisions. Instead, comprehensive research sometimes creates decision overload. With 50+ tokens rated 70+, which 10-15 do you actually buy?
  2. Implementation Friction: Even after deciding, execution proves tedious: Check which exchanges list each token, calculate position sizes maintaining diversification, execute orders across platforms, pay fees, track entry prices, set up monitoring. Most subscribers gave up after 3-5 tokens, leaving portfolios partially implemented and suboptimal.
  3. Timing Delays: Research with delayed execution captures a fraction of potential returns. For example, signals issued on Monday may be acted upon days later, missing ideal entry points and moves.
  4. Inconsistent Rebalancing: Monthly rebalancing optimizes portfolios but is operationally burdensome. Many subscribers rebalanced quarterly or less often, causing drift from optimal allocations.
  5. Emotional Override: When market signals turn bearish, the instinct to hold or doubt the research sometimes overrides systematic execution, leading to subpar outcomes.

The Missing Infrastructure: Automatic Implementation

Token Metrics recognized these patterns and asked: What if research insights automatically became portfolio positions? What if ratings updates triggered systematic rebalancing? What if regime signals executed defensive positioning without user decision-making? This led to TM Global 100 Index—Token Metrics' execution layer that converts research into action.

How TM Global 100 Implements Token Metrics Research

Research Input #1: Market Cap Rankings + Quality Screening

Token Metrics maintains data on 6,000+ tokens. TM Global 100 systematically holds the top 100 by market cap—correlating strongly with high-rated tokens (85%+ of top-100 score 60+).

Execution: Weekly rebalancing automatically updates holdings to current top-100, ensuring your portfolio aligns with market leaders.

Research Input #2: Market Regime Signals

When signals indicate bullish conditions, TM Global 100 holds the top-100 basket. When signals turn bearish, it shifts entirely to stablecoins. All transitions happen automatically, without manual intervention.

Research Input #3: Rebalancing Discipline

Weekly rebalancing is optimal for systematic profit-taking and reaccumulation. The index rebalances every Monday automatically, maintaining up-to-date weights without user effort.

Research Input #4: Diversification Principles

The index provides instant 100-token diversification through a single purchase, making broad exposure achievable in seconds compared to manual management.

Real Subscriber Stories: Before and After

Case Study 1: The Overwhelmed Analyst

Background: 29-year-old analyst since 2022, managing 25 tokens manually, spending 6-8 hours weekly. Missed opportunities due to operational hurdles. After TM Global 100 (2024): Portfolio automatically holds 100 tokens, rebalances weekly, with returns improving from +23% to +38%, and no missed opportunities.

Quote: "TM Global 100 turns every insight into an automatic position. Finally, my returns match the research quality."

Case Study 2: The Signal Ignorer

Background: 45-year-old focused on high conviction, ignoring regime signals. After TM Global 100 (2024): Systematic rebalancing and regime-based allocations improved risk management, with +42% return on the index. Quote: "Automation removed the psychological barrier. The research was always good; I was the broken execution layer."

Case Study 3: The Time-Strapped Professional

Background: 36-year-old limited time, holding just BTC and ETH. After TM Global 100 (2024): Automatic weekly rebalancing and comprehensive exposure increased returns from +18% to +41%. Quote: "Finally, research became ROI—no more operational burden."

The Feedback Loop: How TM Global 100 Improves Token Metrics Research

The system works bidirectionally. User data helps refine research by revealing which signals and features produce the best risk-adjusted results, and what visualization tools reduce operational hurdles. This cycle benefits all users through continuous improvement.

The Broader Execution Suite (Beyond TM Global 100)

Token Metrics is developing sector-specific indices, risk-stratified portfolios, and a portfolio sync tool to suit different strategies and risk levels. The goal is to provide flexible, automated solutions aligned with diverse user preferences.

Manual Implementation Guide (for those who prefer it)

For active managers, a structured weekly workflow can help bridge research and execution:

  1. Review market regime and weekly commentary (20 min)
  2. Assess ratings for holdings and potential entries (30 min)
  3. Execute trades, update records (15 min)
  4. Review portfolio and prepare next steps (15-25 min)

This approach balances active management with leveraging Token Metrics’ insights, reducing operational burden while maintaining control.

Cost-Benefit Analysis: Subscription + Index vs. Subscription Alone

Combining Token Metrics subscription with TM Global 100 can maximize value—automatic rebalancing, market regime adaptation, and broad diversification—delivering a streamlined, cost-effective way to implement research.

Conclusion: Close the Loop

Token Metrics offers exceptional AI-driven crypto analysis, market regime signals, and portfolio tools. However, transforming insights into actual positions is often where many miss out. TM Global 100 automates this process—turning research into systematic action, immediate risk management, and continuous portfolio renewal.

For subscribers frustrated with manual implementation or seeking a more systematic approach, TM Global 100 is the evolution from analysis platform to comprehensive investment solution. Great research deserves great execution—now it has it.

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Crypto Basics

8 Best Crypto Exchange APIs for Developers and Traders

Token Metrics Team
6 minutes
MIN

Cryptocurrency is here to stay - no matter what; this is what experts keep concreting despite its high volatility. Though it's constantly on a swinging profit/loss, it has the interest of millions worldwide. 

With the rise in popularity of blockchain technology, the demand for reliable and efficient cryptocurrency APIs has grown significantly. Crypto APIs, or application programming interfaces, enable developers to interact with cryptocurrencies in various ways, including trading, tracking market data, and managing digital wallets.

This article will explore the top crypto exchange APIs currently available. These crypto APIs offer a range of features and functionalities, making them invaluable tools for anyone looking to build applications in the crypto space.

Crypto Exchange APIs

Using crypto exchange APIs can provide a range of benefits for developers and traders.

They allow for easy access to a wealth of data and tools, allowing for the development of innovative solutions. These APIs can also save you time and resources by eliminating the need to gather and process data manually.

Additionally, crypto APIs can provide real-time updates on market trends, allowing traders to make informed decisions and stay ahead of the competition.

That said, let's explore the list of best crypto exchange APIs to use today.

Top 8 Cryptocurrency Exchange APIs

Here is the complete list of top crypto exchange API providers with free and paid plans.

1. Token Metrics Crypto API - The Best Crypto API for AI-Powered Trading & Investment Apps

In a fast-moving crypto market, access to reliable, real-time data is critical. The Token Metrics API has emerged as one of the best crypto APIs, delivering a complete AI-powered data solution for traders, developers, and crypto investment platforms.

Unlike many crypto data providers that simply aggregate prices or on-chain data, Token Metrics combines tick-level price feeds, deep on-chain analytics, and proprietary AI-generated grades into a unified API. Developers can stream live market prices, liquidity flows, funding rates, on-chain metrics, and unique AI Trader & Investor Grades—all through a single API call. This makes building powerful trading bots, autonomous agents, portfolio dashboards, and signal feeds remarkably simple.

The API’s back-tested AI models generate long and short entry signals, giving developers ready-to-use actionable trade ideas. With official Python and TypeScript SDKs, integration is fast and developer-friendly, with built-in authentication, retries, and pandas helpers. Whether you’re building CEX/DEX bots, Telegram trading bots, AI research agents, or crypto investment dashboards, the Token Metrics API offers unmatched flexibility.

Token Metrics API also powers a growing ecosystem of integrations including QuickNode for blockchain infrastructure, Chainlink for oracles, Zapier for no-code automation, and OpenAI for advanced AI agents. The API pricing is fully transparent, starting with a free plan for prototyping and scaling up with usage-based billing as projects grow.

Built for serious crypto builders, Token Metrics API delivers real-time AI insights that go beyond simple data aggregation—enabling you to build smarter, faster, and more predictive trading systems. Whether you're managing your own trading strategies or building next-gen crypto apps, Token Metrics API stands out as the best crypto API on the market today.

Start for free today and unlock the full power of AI-driven crypto intelligence with Token Metrics API.

2. Binance API

Binance is one of the largest and most popular cryptocurrency exchanges in the world. Its API allows traders to access real-time market data, execute trades, and manage their accounts. The API is easy to use and well-documented, making it a great choice for both beginners and experienced traders.

One of the key benefits of the Binance API is its scalability. It can handle a large volume of requests, making it a reliable choice for traders who need to execute trades quickly. Additionally, the API is available in multiple languages, making it accessible to traders around the world.

3. Coinbase API

Coinbase is another popular cryptocurrency exchange that offers an API for traders. The API provides access to real-time market data, account management features, and the ability to execute trades.

One of the standout features of the Coinbase API is its security. The exchange has a strong reputation for security and has implemented various measures to protect users' funds. Additionally, the API is well-documented and easy to use, making it a great choice for traders who value simplicity.

4. Kraken API

Kraken is a cryptocurrency exchange that has been around since years. Its API provides access to real-time market data, account management features, and the ability to execute trades.

One of the benefits of the Kraken API is its advanced order types. Traders can use the API to place advanced orders such as stop-loss and take-profit orders, allowing them to manage risk more effectively. Additionally, the API is highly customizable, making it a great choice for traders who want to tailor their trading experience to their specific needs.

5. Bitfinex API

Bitfinex is a cryptocurrency exchange that offers an API for traders. The API provides access to real-time market data, account management features, and the ability to execute trades.

One of the standout features of the Bitfinex API is its margin trading capabilities. Traders can use the API to trade on margin, allowing them to increase their buying power and potentially increase their profits. Additionally, the API is highly customizable, making it a great choice for traders who want to tailor their trading experience to their specific needs.

6. Huobi API

Huobi is a cryptocurrency exchange that offers an API for traders. The API provides access to real-time market data, account management features, and the ability to execute trades.

One of the benefits of the Huobi API is its advanced trading features. Traders can use the API to place advanced orders, including stop-loss and take-profit orders. Additionally, the API supports a wide range of cryptocurrencies, making it a great choice for traders who want to diversify their portfolios.

7. Bitstamp API

Bitstamp is a cryptocurrency exchange that offers an API for traders. The API provides access to real-time market data, account management features, and the ability to execute trades.

One of the benefits of the Bitstamp API is its security. The exchange has implemented various measures to protect users' funds, including two-factor authentication and cold storage. Additionally, the API is easy to use and well-documented, making it a great choice for both beginners and experienced traders.

8. KuCoin API

KuCoin is a cryptocurrency exchange that offers an API for traders. The API provides access to real-time market data, account management features, and the ability to execute trades.

Additionally, the API is highly customizable, making it a great choice for traders who want to tailor their trading experience to their specific needs.

The Bottom Line

The crypto market is rapidly growing, and having access to reliable and efficient APIs is crucial for developers and traders. The 8 must-try crypto APIs we've explored in this article offer a range of features and benefits to help you stay ahead of the game.

These crypto APIs can help you build innovative solutions and make informed decisions, from market data to trading tools.

Crypto Basics

Crypto Regulation – Opportunities, Challenges and Impact on Market

Token Metrics Team
7 minutes
MIN

Cryptocurrency may be a peer-to-peer digital transactional technology, but without proper regulation or framework, more scams will happen in the digital world. 

What crypto regulations are there in the market? How to understand if a particular crypto asset is an ardent follower of these rules? Does crypto follow any law? If yes, will these laws affect the price of the cryptocurrencies too? Let's find out.

What are Crypto Laws?

Crypto laws refer to the legal regulations and requirements that apply to activities related to cryptocurrencies, such as buying, selling, trading, and using them as a medium of exchange. 

These laws can vary depending on the country or jurisdiction in which the activities occur and can include regulations related to securities, commodities, taxation, anti-money laundering, and consumer protection.

Crypto laws aim to protect investors, consumers, and the financial system from the risks associated with cryptocurrencies, such as volatility, fraud, and money laundering. They are also intended to promote transparency and fairness in the market and to prevent illicit activities such as terrorist financing and the funding of criminal enterprises.

Some common aspects of crypto laws include licensing and registration requirements for crypto businesses, such as exchanges and wallet providers, as well as rules for capital gains, losses, and value-added taxes. Anti-money laundering and know-your-customer regulations are also often included in crypto laws to prevent using cryptocurrencies for illegal activities.

As the crypto market continues to evolve, so will the laws and regulations governing it. It is essential for investors and participants in the crypto market to stay up-to-date with the regulatory landscape in their particular jurisdiction in order to ensure compliance and mitigate risks.

How is Crypto Regulated in the World?

Crypto is somewhat regulated in the United States, but the specific regulations and requirements vary depending on the type of cryptocurrency activity and the state in which it occurs.

The regulation of cryptocurrency in the United States is primarily the responsibility of:

  • The Securities and Exchange Commission (SEC), 
  • The Commodity Futures Trading Commission (CFTC), and 
  • The Financial Crimes Enforcement Network (FinCEN). 

The SEC and CFTC have authority over cryptocurrency exchanges and trading, while FinCEN is responsible for enforcing anti-money laundering (AML) and know-your-customer (KYC) regulations.

In addition to federal regulations, individual states have rules for cryptocurrency activities. Some states, such as New York, have implemented specific licensing requirements for cryptocurrency businesses, while others have yet to develop comprehensive regulations.

In Europe, the European Securities and Markets Authority (ESMA) regulates cryptocurrencies and initial coin offerings (ICOs). Each European country also has its regulatory authority, such as the Financial Conduct Authority (FCA) in the United Kingdom.

In Asia, the regulation of cryptocurrencies varies widely by country. Japan, for example, has implemented a licensing system for cryptocurrency exchanges, while China has banned cryptocurrency exchanges altogether.

Key Regulations that Every Nation Follows

To be honest, there is no one-size-fits-all answer to this question. The laws and regulations needed to regulate the crypto market effectively can vary depending on the specific circumstances of each country or jurisdiction.

However, some key areas that many nations may need to consider when regulating cryptocurrencies include the following:

Definition & Classification

Governments must define and classify cryptocurrencies, including whether they should be considered commodities, securities, or currency.

Licensing & Registration

Governments may need to implement licensing and registration requirements for cryptocurrency businesses, including exchanges, wallets, and other service providers.

Consumer Protection

Laws may need to be developed to protect consumers from fraud, scams, and other risks associated with investing in or using cryptocurrencies.

Taxation

Governments may need to develop tax laws specifically addressing cryptocurrencies, including rules for capital gains and losses and VAT or sales tax.

AML & KYC

Anti-money laundering (AML) and know-your-customer (KYC) regulations are essential to prevent money laundering, terrorist financing, and other illicit activities.

Security Standards

Regulations should be implemented to ensure that crypto businesses and their users adhere to specific security standards to protect against hacking and other security breaches.

International Cooperation

Due to the global nature of cryptocurrencies, nations may need to cooperate in developing consistent regulatory standards. The regulations needed to regulate cryptocurrencies effectively will depend on the specific circumstances of each country or jurisdiction and the evolving nature of the crypto market itself. 

Impact of Regulations on the Crypto Market

The impact of regulation on the crypto market can be significant and affect various aspects of the market. Here are some ways in which law can impact the crypto market:

Market Volatility - The announcement of new regulations can cause market volatility, as investors may become uncertain about the market's future. If the regulations are considered too restrictive, it may lead to a drop in prices, while regulations perceived as beneficial could increase costs.

Investor Confidence - Regulations designed to protect investors can increase confidence in the market, attracting more institutional investors and significant amounts of capital. This can ultimately lead to more stability in the market.

Adoption - Regulations that provide a clear legal framework for cryptocurrencies can encourage more businesses and individuals to adopt them. This can lead to increased demand for cryptocurrencies and, in turn, higher prices.

Innovation - Regulations can also impact innovation in the crypto market. Regulations that are too restrictive or burdensome can stifle innovation, while regulations that are designed to promote innovation can lead to the development of new technologies and use cases.

Compliance Costs - Compliance with regulations can be costly for crypto businesses, particularly smaller ones. This can create barriers to entry and limit the growth of the market.

While regulations can provide excellent protection for investors and encourage adoption, they can create uncertainty and increase business compliance costs. Regulators must balance protecting investors and promoting innovation in the market.

And here’s the million-dollar question!

Will the price of Bitcoin, Ethereum, or your preferred cryptocurrency suddenly drop upon the announcement of the subsequent regulation? 

It's a question worth a million dollars, but the truth is that nobody knows for sure. What we do know is that highly restrictive rules could hurt crypto prices. For instance, a regulation that bans crypto exchanges in the U.S. would make it difficult for U.S. residents to obtain cryptocurrencies, potentially causing a significant decline in the entire market.

Conversely, a regulation that mandates exchanges to maintain accurate records of trades and prevent market manipulation could attract more conservative investors, potentially leading to higher prices. Therefore, the effects of regulations on cryptocurrency prices can be either beneficial or detrimental.

Challenges of Enforcing these Regulations

Enforcing cryptocurrency regulations can be challenging for several reasons:

1. Cross-border nature of cryptocurrencies:

Cryptocurrencies are global, decentralized, and not bound by physical borders or jurisdictions. Therefore, enforcing regulations can be challenging, as different laws and regulations may exist in other countries.

2. Anonymity:

Cryptocurrencies allow users to maintain anonymity, making it difficult to track and identify individuals engaging in illicit activities.

3. Lack of regulatory clarity:

The regulatory framework for cryptocurrencies is still in its early stages, and some areas need more clarity. This can make it tough for businesses and investors to understand their legal obligations and create market uncertainty.

4. Rapidly evolving technology:

The technology behind cryptocurrencies is rapidly changing, creating the need to keep up with the latest developments, and ensure that their regulations are still relevant and practical.

5. Lack of resources:

Regulators may need more resources and expertise to effectively monitor and enforce regulations in the fast-paced and complex world of cryptocurrencies.

The Bottom Line

If you are an active crypto investor, understanding the current and potential future regulations is crucial for your portfolio. These regulations could impact various aspects, including your tax obligations, the types of cryptocurrencies available for purchase, and the procedures required to buy Bitcoin and other cryptocurrencies. 

Keeping tabs of the legislation is critical to becoming a knowledgeable investor.

Announcements

Introducing the Customizable Ratings Page for Best Crypto Opportunities

Token Metrics Team
7 minutes
MIN

Are you looking for a way to personalize your crypto investing experience like never before? Do you want to have access to a wealth of data and insights that can help you make smarter and faster investment decisions? If so, you’re going to love our latest innovation: the Customizable Ratings Page.

The Customizable Ratings Page is a powerful tool that allows you to tailor your Token Metrics dashboard according to your preferences and goals. You can choose from an expanded selection of columns and metrics, apply advanced filters, and save your preferred layout for future use. This way, you can have a streamlined and efficient interface that shows you exactly what you need to know about various cryptocurrencies.

In this blog post, we’ll show you how the Customizable Ratings Page works and why it’s a game-changer for crypto investors.

How the Customizable Ratings Page Works

The Customizable Ratings Page is designed to give you more control and flexibility over your crypto investing journey. Here’s how it works:

  • First, log in to your Token Metrics account and go to the ratings page. You’ll see our default columns that show you our ratings, predictions, fundamentals, technology, technical analysis, correlation rank, volatility rank, market cap rank, price change rank, volume change rank, liquidity rank.
  • Next, click on the “Customize” button at the top right corner of the page. You’ll see a list of additional columns that you can add or remove from your dashboard. These include: market cap dominance rank (how dominant is a coin in terms of market cap), price prediction accuracy (how accurate are our price predictions), ROI since inception (how much return has a coin generated since its launch), ROI 30 days (how much return has a coin generated in the past 30 days), ROI 90 days (how much return has a coin generated in the past 90 days), ROI 365 days (how much return has a coin generated in the past year), risk-adjusted returns (how much return has a coin generated relative to its risk), Sharpe ratio (a measure of risk-adjusted returns), Sortino ratio (a measure of downside risk-adjusted returns), max drawdown (the maximum loss from peak to trough), annualized volatility (the standard deviation of annual returns), skewness (a measure of asymmetry of returns distribution), kurtosis (a measure of tail risk of returns distribution).
  • Then, drag and drop the columns to rearrange them according to your preference. You can also resize them by dragging their edges.
  • Finally, click on “Save” to save your customized layout. You can also click on “Reset” to go back to the default layout.

You can also use advanced filters to narrow down your search for specific coins or criteria. For example:

  • If you want to see only coins with high ratings (>80%), high fundamentals (>80%), high technology (>80%), low correlation (<0.5) with Bitcoin or Ethereum
  • If you want to see only coins with positive price predictions (>0%), positive price change (>0%), positive volume change (>0%), high liquidity (>80%)
  • If you want to see only coins with high ROI since inception (>1000%), high Sharpe ratio (>2), low max drawdown (<50%), low annualized volatility (<50%)

You can apply these filters by clicking on the filter icon next to each column header and entering your desired values or ranges.

The Game-Changer for Crypto Investors?

The Customizable Ratings Page is more than just a cosmetic upgrade. It’s a game-changer for crypto investors because it offers several benefits:

  • It helps you focus on what matters most: With so many data points and indicators available in crypto investing, it can be overwhelming and confusing to keep track of everything.
    The Customizable Ratings Page lets you focus on what matters most to you and your strategy, whether it’s fundamentals, technology, technical analysis, price predictions, risk-adjusted returns, or anything else. You can eliminate unnecessary noise and clutter and have a clear view of the information that drives your decisions.
  • It helps you discover new opportunities: With over 6000 cryptocurrencies in existence, it can be hard to find new opportunities that match your criteria and goals.
    The Customizable Ratings Page lets you discover new opportunities by applying advanced filters that sort through our vast database of coins. You can find hidden gems that meet your standards and expectations, whether you’re looking for high growth potential, low risk, or niche markets.
  • It helps you save time and effort: Crypto investing can be time-consuming and exhausting if you have to manually research and analyze every coin that catches your eye.
    The Customizable Ratings Page helps you save time and effort by providing you with a quick and easy way to compare and contrast different coins based on various metrics. You can see at a glance how each coin stacks up against others in terms of ratings, predictions, fundamentals, technology, technical analysis, risk-adjusted returns, and more.

Here's a great video to give you a better understanding of the Customizable Ratings Page:

With an expanded selection of columns and metrics, advanced filters, and saved preferences, we’re putting users in the driver’s seat when it comes to analyzing and selecting the best investment opportunities.

At Token Metrics, we’re committed to providing the best tools and resources for our customers to succeed in the ever-evolving world of cryptocurrencies. The Customizable Ratings Page is just another step in our mission to help you make well-informed investment decisions, tailored to your unique goals and strategies.

Crypto Basics

Cryptocurrency Analysis - How to Analyze Cryptocurrencies

Token Metrics Team
9 minutes
MIN

Crypto has indeed gained significant attention and has been a popular investment option in recent times. However, analyzing a cryptocurrency before investing is crucial to make informed decisions and minimize risks. In this article, we will help you understand the key factors that impact a cryptocurrency's price and demand. By doing so, we aim to make it easier for you to embark on your crypto journey with confidence.

But why is it essential to analyze a cryptocurrency before investing in the first place? The answer lies in the volatile nature of cryptocurrencies. The value of a cryptocurrency can fluctuate significantly within a short time, making it a high-risk investment option. By analyzing a cryptocurrency's underlying factors, you can gain insights into its potential risks and rewards, which can help you make more informed investment decisions. With that in mind, let's dive into the key factors that affect a cryptocurrency's value.

How to Analyze Cryptocurrencies?

There are two popular ways (or types) to analyze a cryptocurrency before investing in it.

  1. Fundamental analysis
  2. Technical analysis 

Fundamental Analysis of Cryptocurrency

Fundamental analysis is the starting point of understanding the history of any crypto asset you want to invest in. 

It involves getting to the Adam and Eve of an asset, the team behind the project, the price history, the white paper, the tokenomics of the crypto asset - the whole deal.

The sole purpose of performing this analysis is to understand if the asset is overvalued or undervalued. Having said that, fundamental analysis needs the support of technical analysis to predict the crypto asset completely. 

The most important factors to consider when performing the fundamental analysis are:

1. Reviewing the white paper

Every crypto asset is backed by a white paper demonstrating the objectives and other technical details. While some details might seem quite difficult to understand for casual investors, it’s crucial to learn about the vision and mission of the project. 

The white paper should clearly explain the goals of the project, how they plan to achieve these goals using their technology, and how the cryptocurrency will function in the market. 

One red flag is a white paper full of generic promises with no proper detailing. 

2. Know the Team behind the project

To estimate the project's future performance, try to get the details of the professional experience that the team holds. 

For this, you can scroll through the LinkedIn profiles of the technical or leadership staff. You can also check the crypto asset's "About Us" page to get the details of who is heading the project. 

If you don't find the identity of the founders and the team anywhere on the website or the internet, consider it a red flag in most cases. 

3. Learn about the leadership

Find the executive team that handles the financials, operations, and vision. Learning about who is leading the project can help you understand the success probability of the crypto asset. 

So, here are a few questions to consider when researching a crypto company’s leadership:

  • Do they have a history of successful leadership positions?
  • Are they reputable/well-known leaders?
  • Is their crypto history good or bad?
  • Are they publicly identified or anonymous?

4. Get to know the community

Crypto is a community-driven space. Knowing whether the project is pure hype and speculation or is genuinely trusted by a community can help you decide the success of a crypto asset. 

Join the community's Discord or Telegram channel to understand it better. No discussion means no growth. 

5. Understand the vision and mission of the project

Crypto assets should have a clear vision and mission if they are genuinely intending to grow.

They should have a direction and a road map and be well-organized in everything they do.

6. Reviewing the roadmap

Similar to traditional companies, cryptocurrencies should have a well-defined roadmap with specific goals and timelines. It is crucial to assess the roadmap before investing in a cryptocurrency to ensure that the asset has a clear path to success. Understanding how the cryptocurrency plans to achieve its goals is essential in making informed investment decisions.

If the goals outlined in the roadmap are too generic and lack specificity, it can be a red flag. Additionally, if the timelines are not well mapped out or appear unrealistic, it could indicate poor planning or execution, which can impact the cryptocurrency's long-term success.

7. Learn about the tokenomics of the project

Tokenomics refers to the economic principles that govern the supply, distribution, and circulation of a cryptocurrency. These principles significantly impact the price and long-term viability of a crypto asset. Understanding the supply and demand dynamics is crucial for investors looking to make informed decisions.

Similar to the stock market, the crypto market's price is influenced by the intersection of demand and supply. When demand exceeds supply, the price of a cryptocurrency tends to increase, and vice versa. Therefore, it is essential to consider the following three data points when evaluating a cryptocurrency investment opportunity:

  1. Circulating supply: This is the amount of cryptocurrency currently in circulation and available in the market. It is a critical factor in determining the current market value of a cryptocurrency.
  2. Total supply: This is the maximum amount of cryptocurrency that will ever be available, including tokens that are not yet in circulation. It is important to consider the total supply when evaluating the potential long-term value of a cryptocurrency.
  3. Maximum supply: Many cryptocurrencies have a mechanism to mint new tokens, and the maximum supply represents the upper limit of the number of tokens that will ever be in existence. Understanding the maximum supply is crucial in assessing the potential dilution of a cryptocurrency's value over time.

In summary, evaluating a cryptocurrency's supply dynamics is an essential aspect of making informed investment decisions. Understanding the circulating, total, and maximum supply of a cryptocurrency can provide valuable insights into its potential value and long-term viability.

8. Review the price history

Cryptocurrencies are known for their high volatility, but there are various factors that impact their price. Understanding these factors, such as token supply and marketing efforts, is crucial in determining the dependability of a cryptocurrency's price. Additionally, reviewing a cryptocurrency's price history can provide valuable insights into its growth or decline over time.

Analyzing price fluctuations in a given time period can help you determine whether a cryptocurrency is thriving or dying. For instance, if a cryptocurrency experienced a significant price spike but failed to recover over subsequent months or years, it could be a warning sign for investors. Similarly, market capitalization and trading volume are crucial indicators of a cryptocurrency's potential. If a cryptocurrency's market cap continues to decline over time, or if there is little trading volume, it may not be a viable investment option.

Technical Analysis of Cryptocurrency

Technical analysis of a crypto asset involves analyzing historical price and volume data to identify patterns and trends that can provide insight into future price movements.

Here are 5 factors to consider in the technical analysis of a crypto asset:

  1. Price charts and patterns: Technical analysis typically involves using price charts to identify trends and patterns. Common patterns include support and resistance levels, trend lines, and chart formations such as triangles and head-and-shoulders patterns.
  2. Volume: Volume refers to the number of cryptocurrency shares or units traded during a given period. High trading volume can indicate a strong trend, while low trading volume may suggest that a market is consolidating or lacks momentum.
  3. Moving averages: Moving averages are widely used in technical analysis. They are used to smooth out price fluctuations and identify trends. Popular moving averages include the simple moving average (SMA) and the exponential moving average (EMA).
  4. Oscillators: Oscillators are indicators that oscillate between two extremes, such as overbought and oversold conditions. Common oscillators used in technical analysis include the relative strength index (RSI) and the stochastic oscillator.
  5. Market sentiment: Market sentiment refers to investors' overall mood or attitude towards a particular cryptocurrency. Sentiment can be measured using various methods, such as social media sentiment analysis or surveys of market participants. Considering market sentiment when analyzing a crypto asset is important because it can impact price movements. 

Technical analysis can provide valuable insights into a cryptocurrency's price movements, but it requires expertise in the field. The term "technical" refers to the complex algorithms and charts used to analyze market trends and predict future price movements.

Therefore, it may be too complicated for casual investors who do not have a strong understanding of the underlying principles. Here at Token Metrics, we automated Technical Analysis for thousands of cryptocurrencies with the help of AI and Machine Learning.

Just visit the page of a crypto you want to analyze, click on "Trader" from the left menu, and then click on the "Resistance and Support Levels" tab to start analyzing.

The Bottom Line

A cryptocurrency analysis involves examining and verifying a lot of information about a digital asset.

To get the deepest understanding of an asset, you can start with a fundamental analysis followed by a technical analysis.

We, at Token Metrics, work hard to make all of these tools available to you with a click of a button, automated and powered by AI to help you analyze thousands of cryptocurrencies fast.

Crypto Basics

Golden Crossing Pattern - What It Is and How to Identify It?

Token Metrics Team
8 minutes
MIN

In the world of crypto trading, technical analysis is a popular method for predicting the future price movements. One of the most well-known term in technical indicators is the "golden cross," which occurs when the short-term moving average of a cryptocurrency's price crosses above its long term moving average. While this pattern is not a guaranteed predictor of future price increases, many traders use it as a part of their overall trading strategy.

In this blog post, we will explore the concept of the golden cross in more detail, including what it is, how it works, and some of the potential risks and strategies of using this pattern in cryptocurrency trading.

What is Golden Crossing?

Golden Crossing is a technical analysis term used in financial markets to describe a bullish trend signal that occurs when a shorter-term moving average crosses above a longer-term moving average. The term "golden" represents this crossover's positive sentiment among traders and investors.

What Does a Golden Crossing Indicate?

A Golden Cross occurs when a shorter-term moving average (such as the 50-day moving average) crosses above a longer-term moving average (such as the 200-day moving average).

This crossing is thought to indicate that the stock's price has been trending higher in the short term and is likely to continue in the longer term. This is considered a bullish signal in technical analysis.

How to Identify a Golden Cross?

To identify a Golden Cross on a chart, you will need to plot two moving averages with different periods. The most common combination used to identify a Golden Cross is the 50-day moving average and the 200-day moving average.

Here are the steps to identify a Golden Cross on a chart:

  1. Open a chart for the crypto asset you want to analyze.
  2. Select the time frame for the graph (e.g., daily, weekly, monthly).
  3. Plot the 50-day moving average and the 200-day moving average on the chart.
  4. Look for where the 50-day moving average crosses above the 200-day moving average.
  5. This point where the 50-day moving average crosses above the 200-day moving average is the Golden Cross.
Golden Crossing

Once you have identified the Golden Cross, you can use it as a signal to buy the crypto asset.

However, as we mentioned earlier, it is important to consider other factors before making an investment decision and not solely rely on a single technical analysis tool.

How to Use the Golden Cross Strategy?

The Golden Cross strategy is a technical analysis tool traders and investors use to identify potential buy signals in financial markets. Here are some steps to use the Golden Cross strategy:

  • Identify the Golden Cross: As we mentioned, the Golden Cross occurs when the shorter-term moving average (e.g., 50-day moving average) crosses above the longer-term moving average (e.g., 200-day moving average).
  • Confirm the signal: Traders and investors usually use other technical analysis tools to confirm the Golden Cross signal, such as the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), or price patterns like support and resistance levels.
  • Consider fundamental analysis: It is essential to consider the fundamental analysis of the asset, such as earnings reports, financial statements, market trends, and economic indicators. The Golden Cross strategy should be one of many factors in your investment decision.
  • Plan the trade: Once you have identified the Golden Cross and confirmed the signal, you can plan your trade. Set your entry point, stop loss and target price based on your risk tolerance and investment goals.
  • Manage the trade: Monitoring the transaction regularly and adjusting your stop loss and target price based on market conditions is important. Traders and investors use trailing stop losses to protect their profits and manage risks.

Note: It is important to note that the Golden Cross strategy does not guarantee success, and traders and investors should always be aware of the risks involved in trading and investing. As with any trading strategy, conducting proper research, managing risk, and having a well-defined trading plan are essential.

7 Best Golden Cross Trading Strategies

Here are seven Golden Cross trading strategies that traders and investors can use to identify potential buy signals in financial markets:

  • Simple Golden Cross: This basic Golden Cross strategy occurs when the 50-day moving average exceeds the 200-day moving average. Traders use this strategy to identify a bullish trend and enter a long position.
  • Multiple Moving Averages: Traders can use various moving averages, such as the 20-day, 50-day, and 200-day moving averages, to confirm the Golden Cross signal. If all moving averages cross above each other, it can demonstrate a strong bullish trend.
  • Golden Cross with Relative Strength Index (RSI): Traders can use the RSI indicator to confirm the Golden Cross signal. If the RSI crosses above the 50 levels simultaneously with the Golden Cross, it can indicate a strong bullish trend.
  • Golden Cross with Moving Average Convergence Divergence (MACD): Traders can use the MACD indicator to confirm the Golden Cross signal. If the MACD line crosses above the signal line simultaneously with the Golden Cross, it can indicate a strong bullish trend.
  • Golden Cross with Support and Resistance Levels: Traders can use support and resistance levels to confirm the Golden Cross signal. If the asset’s price breaks above a key resistance level simultaneously with the Golden Cross, it can indicate a strong bullish trend.
  • Golden Cross with Volume: Traders can use volume to confirm the Golden Cross signal. If the asset’s price exceeds the moving averages with high volume, it can indicate a strong bullish trend.
  • Golden Cross with Candlestick Patterns: Traders can use candlestick patterns, such as bullish engulfing or morning star patterns, to confirm the Golden Cross signal. If a bullish candlestick pattern forms at the same time as the Golden Cross, it can indicate a strong bullish trend.

Some Classic Examples Of Golden Cross

Here are some examples of Golden Cross signals that have occurred in financial markets:

  • Bitcoin (BTC): In April 2019, Bitcoin experienced a Golden Cross signal when the 50-day moving average crossed above the 200-day moving average. This signal indicated a potential bullish trend in Bitcoin's price. Traders who entered a long position in Bitcoin at this point would have profited from the subsequent rise in Bitcoin's price.
  • Apple Inc. (AAPL): In April 2019, Apple's stock price experienced a Golden Cross signal when the 50-day moving average exceeded the 200-day moving average. This signal indicated a potential bullish trend in Apple's stock price. Traders who entered a long position would have profited from the subsequent Apple stock price rise.
  • Gold (XAU): In June 2019, Gold experienced a Golden Cross signal when the 50-day moving average crossed above the 200-day moving average. This signal indicated a potential bullish trend in Gold's price. Traders who entered a long position in Gold would have profited from the subsequent rise in Gold's price.

Observing past performance does not indicate future results, so conduct your research, understand the risks involved, and dive deep into investing. The Golden Cross signal is just one tool among many that traders and investors use to identify potential buy signals in financial markets.

Risks Associated With Golden Cross Strategy

Like any trading strategy, the Golden Cross strategy also comes with risks that traders and investors should be aware of:

  • False Signals: The Golden Cross signal does not guarantee future market performance. Traders and investors should research and analyze well before entering a trade, as false signals can occur.
  • Delayed Entry: The Golden Cross signal occurs after the start of a new trend, which means traders and investors who rely on this signal may enter the market later than those who use other indicators or strategies. This can result in missed opportunities or lower potential profits.
  • Market Volatility: The Golden Cross signal may be less effective during periods of market volatility, as the moving averages may cross frequently and produce false signals. Traders and investors should adjust their trading strategies to reflect current market conditions.
  • Whipsaw Effects: The Golden Cross signal may produce whipsaw effects, where the market reverses shortly after the signal. Traders and investors should use other technical analysis tools and risk management techniques to mitigate this risk.

This is why traders and investors should carefully consider the risks associated with the Golden Cross strategy and their own risk tolerance and investment objectives before using this strategy in financial markets.

The Bottom Line

All indicators, in general, are considered to show some ‘lag’, and that no indicator can actually predict the future. It is also observed that the golden cross often produces a false signal leading to regular failure in its predicting power.

Therefore, a golden cross should always be followed by confirmation from other signals and indicators before fixating on a trade. This is why we use more than 50 data points in our AI-based models to predict the cryptocurrency market correctly, here at Token Metrics.

The key to using golden cross - including additional filters and indicators - is to always use proper risk parameters and ratios. Remember that your risk-to-reward ratio has got to be in your favour to yield better results than just following the cross blindly.

Crypto Basics

What is Spot Trading and Is It Profitable?

S. Vishwa
6 minutes
MIN

If you are wondering what is spot trading, this is the place to be.

Spot trading is a fundamental mechanism that allows investors to buy or sell financial assets for immediate delivery or settlement. This type of trading is prevalent in financial markets, such as stocks, currencies, commodities, and cryptocurrencies, and plays a vital role in facilitating price discovery and market efficiency.

One of the significant benefits of spot trading is its flexibility, which enables investors to respond quickly to market movements and capitalize on short-term opportunities.

What is Spot Trading?

In simple words, Spot trading in crypto refers to buying and selling cryptocurrencies for immediate delivery or settlement. In other words, when you engage in spot trading, you exchange one cryptocurrency for another at the current market price without delay or future delivery.

When you engage in spot trading, you're typically looking to profit from short-term price fluctuations in the market. For example, you might buy a cryptocurrency when you think its price will increase and then sell it shortly after to realize a profit. Alternatively, you might sell a cryptocurrency when you consider its price will decrease and repurchase it later at a lower price.

Spot trading differs from other forms of crypto trading, such as futures trading or options trading, which involve buying or selling contracts that obligate you to buy or sell a certain amount of cryptocurrency at a future date and price. In contrast, spot trading involves only the immediate exchange of cryptocurrencies at their current market value.

How Does Crypto Spot Trading Work?

Crypto spot trading allows users to buy or sell cryptocurrencies at the current market price in real-time. Here are the basic steps involved in a typical crypto spot trade:

  • Choose a cryptocurrency exchange: The first step is to choose a cryptocurrency exchange that supports spot trading. Some popular exchanges include Binance, Coinbase, and Kraken.
  • Create an account: Once you've chosen an exchange, you must create an account by providing your personal information and verifying your identity.
  • Fund your account: After creating an account, you must fund it with fiat currency (such as USD or EUR) or another cryptocurrency.
  • Choose the cryptocurrency pair: You must choose the cryptocurrency pair you want to trade. For example, you would choose the BTC/USD pair to buy Bitcoin using USD.
  • Place an order: Once you've selected the cryptocurrency pair, you can order to buy or sell the cryptocurrency at the current market price. You can also choose to place a limit order, which allows you to specify a particular price at which you want to buy or sell the cryptocurrency.
  • Execute the trade: If your order is accepted, the trade will be executed immediately, and you'll receive the purchased cryptocurrency in your exchange wallet.
  • Withdraw your funds: Finally, you can withdraw your funds (either fiat currency or cryptocurrency) from the exchange and transfer them to your personal wallet.

It's important to note that the price of cryptocurrencies can be volatile and may change rapidly. Hence, exercising caution and conducting your own research is important before engaging in spot trading.

Pros and Cons of Crypto Spot Trading

There are several pros and cons to consider when it comes to crypto spot trading:

Pros of Spot Trading

  • Immediate execution: With spot trading, you can buy or sell cryptocurrencies immediately at the current market price, allowing you to take advantage of short-term price movements and capitalize on opportunities.
  • Simplified process: Spot trading is relatively straightforward compared to other forms of trading, such as futures or options trading, which can be more complex and require more expertise.
  • Low fees: Spot trading typically has lower fees than other forms of trading, making it a cost-effective way to trade cryptocurrencies.
  • High liquidity: Crypto spot trading is often highly liquid, meaning there are many buyers and sellers, making it easy to execute trades quickly and efficiently.

Cons of Spot Trading

  • Volatility: The high volatility of cryptocurrencies can make spot trading risky, as the price of cryptocurrencies can fluctuate rapidly and unpredictably.
  • Limited options: Spot trading only allows for buying and selling cryptocurrencies at the current market price, which means that you may have fewer options for trading strategies than other forms of trading.

Overall, spot trading can be a good way to trade cryptocurrencies for those comfortable with the risks involved and want a simple and cost-effective way to take advantage of short-term price movements. However, it's important to do your research and understand the risks involved before engaging in any trading.

Spot Trading Vs. Futures Trading Vs. Margin Trading

Here are some of the key differences between these trading methods:

Spot trading

  1. Immediate execution: In spot trading, trades are executed immediately at the current market price.
  2. Low fees: Spot trading typically has lower fees compared to futures trading.
  3. No expiry date: Spot trading does not have an expiry date, so you can hold your positions for as long as you want.
  4. Simple: Spot trading is relatively straightforward, making it a good option for beginners.

Futures trading

  1. Speculation: Futures trading is often used for speculation or hedging against future price movements.
  2. High leverage: Futures trading allows for high leverage, meaning traders can make larger trades with smaller amounts of capital.
  3. Expiry date: Futures contracts have an expiry date, which means that traders must close their positions before the expiry date.
  4. Complex: Futures trading can be more complex and requires greater expertise than spot trading.

Margin trading

  1. Leverage: Margin trading allows you to borrow funds from a broker to increase your trading position and potential profits.
  2. Higher risk: Margin trading is riskier than spot trading because of the increased leverage and the potential for greater losses.
  3. More complex: Margin trading can be more difficult and requires greater expertise than spot trading.
  4. Higher fees: Margin trading typically has higher prices than spot trading because of the additional costs associated with borrowing funds.

Spot trading is better suited for those who want to buy or sell cryptocurrencies at the current market price. In contrast, futures trading is better suited for those who want to speculate on future price movements or hedge against potential losses. At the same time, margin trading is better suited for those who wish to increase their trading position and potential profits through leverage. Understanding the differences between the three is important as choosing the best fits your trading goals and risk tolerance. 

Is Spot Trading Profitable?

Spot trading can be profitable but involves risk, and profits are not guaranteed. The profitability of spot trading depends on various factors, such as market conditions, the timing of trades, and the individual trader's knowledge and experience.

To increase the chances of profitability, traders may employ various strategies, such as technical analysis, fundamental analysis, or trading on news events. Traders may also use risk management techniques, such as setting stop-loss orders, to limit potential losses.

The Bottom Line

In conclusion, spot trading is an essential aspect of financial markets that allows investors to buy or sell assets for immediate delivery or settlement. It offers several advantages, including liquidity, transparency, and flexibility, making it a popular choice among traders worldwide.

However, spot trading also involves risks such as price volatility and counterparty risk, which investors must manage effectively. Overall, spot trading plays a critical role in facilitating price discovery and market efficiency, enabling investors to make informed investment decisions and capitalize on market opportunities.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.

Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

Crypto Basics

Crypto Price APIs - Best Cryptocurrency API List for Real-time Prices

Token Metrics Team
8 minutes
MIN

Cryptocurrency price APIs are essential tools for anyone looking to monitor and analyze the performance of various digital assets. These APIs provide real-time price updates and historical data, allowing users to make informed decisions about buying, selling, and trading cryptocurrencies.

There are many cryptocurrency price APIs available in the market, each with its own set of features and benefits. In this blog post, we will explore some of the key features of crypto price APIs, how to use them and why they are important for investors and traders.

Crypto Price API Overview

Crypto Price API is a way to get real-time and historical cryptocurrency price data. 

This allows developers, traders, and investors to access accurate and up-to-date information on the value of various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, among others. 

The API is designed to be fast, reliable, and easy to use, with a variety of endpoints and parameters to customize the data returned. 

It offers a range of features, including support for multiple exchanges and currencies, customizable time intervals, and access to a range of trading data, including volume and order book information. 

Overall, the Crypto Price API is a valuable tool for anyone interested in tracking cryptocurrency prices or developing applications that involve cryptocurrencies.

Types of Crypto Price API

There are several types of crypto price APIs available that provide real-time price data for cryptocurrencies.

The most common type is the RESTful API, which allows developers to retrieve price data using HTTP requests. 

WebSocket API is another popular type of crypto price API that provides real-time streaming of data.

The choice of API will depend on the developer's specific needs and the level of detail required for their application.

How to Use the Crypto Price API?

Using the Token Metrics Data API, one can get real-time prices for cryptocurrencies using the Price endpoint.

What’s inside the $TMAI API?

AI-Powered Trading Signals – Bullish and bearish calls backed by over 80 data points
Real-Time Grades – Instantly assess token momentum with Trader & Investor Grades
Curated Indices – Plug into ready-to-use crypto portfolios by sector or market cap
Lightning-Fast Performance – Built for bots, dashboards, dApps, and next-gen trading tools

Whether you’re building a DeFi dashboard, an alpha-sniping bot, or your own crypto terminal — this is your edge.

Getting started is as easy as:

1. Obtaining an API key by signing up for the Token Metrics Data API Plan.

2. Next, you will need to integrate the API into your application or website using the programming language of your choice. This typically involves sending HTTP requests to the API endpoint and parsing the JSON data that is returned. 

3. Use the Price endpoint to make a call to the API and get real-time prices of cryptocurrencies.

Learn more about all the available endpoints here.

Crypto Price API Features

For crypto price APIs to be considered good, the following features are required to exist:

Real-Time Price Updates

One of the most critical features of a cryptocurrency price API is real-time price updates. With the volatile nature of the crypto market, it is crucial to have up-to-date information on the latest price changes. A good API should provide real-time data feeds that allow users to track changes in the market as they happen.

Historical Data

Another essential feature of a cryptocurrency price API is historical data. Historical data is crucial for analyzing the performance of a particular asset over time. With this information, traders can identify patterns and trends in the market and make informed decisions about when to buy or sell a particular asset.

Data Aggregation

Crypto price APIs often aggregate data from multiple exchanges, providing users with a comprehensive view of the market. This feature is especially useful for traders who want to compare prices across different exchanges and find the best deals.

Customizable Notifications

A good cryptocurrency price API should offer customizable notifications, alerting users when certain price thresholds are met. This feature is particularly useful for investors who want to receive alerts when a particular asset reaches a certain price level.

Accuracy

It is important for the API to return accurate data that is actionable and free-from error. If that is not the case, traders can lose a lot of money relying on false data.

Best Cryptocurrency API List for Real-time Prices

Here is the list of top crypto API providers with Free and paid plans.

  1. Token Metrics API
  2. CoinMarketCap
  3. CoinGecko
  4. CryptoCompare
  5. CCXT

The Bottom Line

In conclusion, crypto APIs play a vital role in the world of cryptocurrency by enabling developers to create innovative applications that interact with various blockchain networks. The best crypto APIs provide reliable and secure access to blockchain data, allowing developers to build applications with confidence and efficiency.

When choosing a crypto API, it is important to consider factors such as pricing, ease of use, security, and the range of features available.

As the ecosystem and toolset surrounding this asset class continue to expand, there has never been a more opportune moment to get started.

Crypto Basics

CoinGecko API - Features, Endpoints, Alternatives, and More

Token Metrics Team
6 minutes
MIN

CoinGecko is a cryptocurrency data aggregator and analysis platform that provides comprehensive information on various aspects of the cryptocurrency market. It has gained huge popularity and is now one of the most commonly used platforms in the crypto sector.

CoinGecko also offers a an API, which provides access to cryptocurrency market data.

What is CoinGecko API?

CoinGecko API is a freemium, public API that provides developers with access to data about cryptocurrencies and their market prices, trading volumes, market capitalization, and other related information.

This data can be used for a variety of applications, including cryptocurrency portfolio tracking, trading bots, price alert systems, and more.

The API provides a number of endpoints that developers can use to retrieve different types of data, including cryptocurrency prices, market capitalization, NFT floor prices, exchange trading volumes, trading pairs, contract address data, crypto categories, crypto derivatives, images, developer activity, and other crypto industry related data.

How Does CoinGecko API Works?

CoinGecko provides developers an easy-to-use API that can be integrated into their applications to retrieve information about cryptocurrencies.

Through its API, CoinGecko offers various endpoints that allow developers to query cryptocurrency data in different ways. Some of the endpoints include:

Price Endpoint: This endpoint provides real-time and historical price data for cryptocurrencies.

Exchange Rates Endpoint: This endpoint provides exchange rates for various fiat currencies and cryptocurrencies.

Market Data Endpoint: This endpoint provides various market data such as market capitalization, trading volume, and supply for cryptocurrencies.

Developer Endpoint: This endpoint provides data related to the development activities of cryptocurrencies, such as the number of commits, stars, forks, and subscribers on their Github repositories.

Social Media Endpoint: This endpoint provides data on the social media activities of cryptocurrencies, such as the number of followers, tweets, and Reddit subscribers.

To use the CoinGecko API, developers need to obtain an API key from the CoinGecko website. They can then send HTTP requests to the API endpoints to retrieve the desired data. The API returns the data in JSON format, which can be easily parsed and used in the developer's application or a website.

Does CoinGecko have a WebSocket?

No, you need to make individual requests to the API to retrieve data.

Is CoinGecko API free?

CoinGecko API basic version is free* for those who want it for personal use and testing purposes only with some conditions and limits. CoinGecko free API has a rate limit of 10-30 calls/minute.

The free plan has limited endpoints and the number of calls you can make.

You need to upgrade to make the most out of the CoinGecko API.

CoinGecko API Alternatives - Free and Paid

CoinGecko is not the only place to get your Crypto data. In fact, there are some very great alternatives you can use to get propriety data like price prediction, indicators, and more, not just real-time prices.

Let's look at some of the best CoinGecko alternatives you can use today.

Token Metrics

Token Metrics is an AI driven crypto analysis platform which enables its users to research thousands of cryptocurrencies in an automated way. Token Metrics recently launched a Crypto Data API for crypto investors and developers. 

This AI-powered API allows users to get access to more than 10 actionable data endpoints to power trading bots, models, and platforms, to make the most money in the crypto space.

CoinMarketCap

The CoinMarketCap API offers both free and paid tiers, with different limits and access to endpoints.

Like CoinGecko, CoinMarketCap also provides access to data like real-time prices, volume, market capitalization, social media information, and more.

CryptoCompare

CryptoCompare API is another option for accessing real-time and historical cryptocurrency market data. It allows developers to easily integrate data such as prices, trading volume, and exchange rates into their applications. 

The API supports a wide range of cryptocurrencies, exchanges, and trading pairs, making it a great resource for anyone looking to build a cryptocurrency-related project.

Final Thoughts

CoinGecko is one of the leaders in the crypto space, providing access to insightful data about thousands of cryptocurrencies and the market.

However, as time goes on, better solutions are being built that are more powerful and use AI to power their data, like Token Metrics. This allows investors to turn data into actionable insights to make informed investment decisions.

Crypto Basics

What is Cosmos (ATOM) Crypto, and Is It a Good Investment?

Token Metrics Team
7 minutes
MIN

Cryptocurrencies have been on the rise, with Bitcoin leading the charge. But what is Cosmos (ATOM) Crypto, a lesser-known digital currency? And is it a good investment? 

Cosmos is one of the most recent cryptocurrencies to enter the market, drawing the attention of traders and investors alike. This article will examine Cosmos crypto and ATOM coin, how it works, and if it is a good investment.

We'll also examine the risks and rewards of investing in this digital currency. By the end of this article, you'll be well-equipped to decide whether investing in Cosmos crypto is right for you.

What is Cosmos (ATOM) Crypto?

Cosmos crypto is a decentralized blockchain network that aims to enable interoperability between different blockchains. It is an ecosystem of connected blockchains, allowing for the secure transfer of assets and information between different blockchains.

Its native token, ATOM, powers the Cosmos blockchain. ATOM a utility token built on the Cosmos network and is used to pay for transaction fees and reward validators for helping maintain the network.

How Do Cosmos Crypto and ATOM Coin Work?

Here's how Cosmos and ATOM Coin work:

Cosmos

Cosmos is built on the Tendermint consensus algorithm, a Proof-of-Stake (PoS) consensus mechanism. The Cosmos network consists of many independent blockchains connected through a central hub called the Cosmos Hub.

This hub acts as a gateway for cross-chain communication, allowing different blockchains to exchange data and value. Developers can build decentralized applications (dApps) on the Cosmos network using the Cosmos SDK, a modular framework for building blockchain applications.

ATOM

ATOM is used to power the operations of the Cosmos network. It is used to pay for transaction fees on the network, stake for network security, and participate in governance decisions.

Validators on the Cosmos network are rewarded in ATOM for validating transactions and maintaining network security.

Advantages of Cosmos (ATOM) Crypto

There are several advantages to investing in Cosmos (ATOM) Crypto. Here are a few that you should know of: 

  1. The Cosmos network offers high security, as it is secured by a network of validators and is somewhat-resistant to attacks. 
  2. The ATOM coin is designed to be used as a medium of exchange on the Cosmos network.
  3. ATOM coin is available on several exchanges, making it easy to buy and sell.

Risks Associated with Cosmos(ATOM) Crypto

As with any investment, there are some risks associated with investing in Cosmos (ATOM) including:

  • Market risk: The price of Cosmos (ATOM) is subject to market fluctuations and may be impacted by factors beyond the control of investors, such as changes in market sentiment, regulations, and overall economic conditions.
  • Technology risk: The success of the Cosmos blockchain technology is not guaranteed. It may not achieve widespread adoption or face technological challenges or competition from other blockchain platforms.
  • Liquidity risk: There is a risk that the market for ATOM may become illiquid or that there may be a lack of buyers or sellers in the market.
  • Security risk: All cryptocurrencies are susceptible to cyber-attacks and hacking attempts. While the Cosmos team has taken measures to enhance the security of the platform, there is no guarantee that it won't get hacked.
  • Regulatory risk: The regulatory environment for cryptocurrencies is still evolving, and there is a risk that governments may enact laws or regulations that adversely affect the value or trading of ATOM.

Factors to Consider Before Investing in Cosmos(ATOM)

If you are interested in investing in Cosmos (ATOM) cryptocurrency, here are some strategies to consider:

  • Research the Technology: It is important to understand the underlying technology and the potential use cases for the Cosmos platform. Conducting thorough research will help determine if Cosmos fits your investment portfolio well.
  • Diversify Your Portfolio: Investing in cryptocurrencies can be volatile, so it is important to diversify your portfolio to mitigate risk. Consider investing in a mix of different cryptocurrencies and traditional assets to create a balanced portfolio.
  • Stay Informed: Keep up-to-date with the latest news and developments related to Cosmos and the broader cryptocurrency market. Follow reliable sources of information and consider joining online communities to stay informed.
  • Determine Your Investment Horizon: Decide on your investment horizon, whether you are investing for the short-term or long-term. This will help you determine the appropriate investment amount and when to sell your holdings.
  • Consider Staking: Cosmos uses a Proof-of-Stake (PoS) consensus mechanism, which means that users can stake their ATOM holdings to help secure the network and earn rewards. Consider staking as a way to earn additional income from your investment.
  • Consider Dollar-Cost Averaging: Dollar-cost averaging is a strategy where you invest a fixed amount of money regularly. This can mitigate the risk of investing at the wrong time and potentially lead to higher returns over the long term.

Remember that investing in cryptocurrencies can be volatile and is not without risk. Conducting your research, understanding your risk tolerance, and considering your investment horizon before investing in Cosmos (ATOM) or any other cryptocurrency is important.

Differences between Cosmos and ATOM Coin

Cosmos is a blockchain platform that enables interoperability between different blockchains, while ATOM is the native cryptocurrency of the Cosmos network.

Top Exchanges to Buy, Sell, and Trade Cosmos (ATOM)

Here are some of the top exchanges to trade Cosmos (ATOM)

  1. Binance
  2. Coinbase
  3. Kraken
  4. KuCoin
  5. Gate

And remember to research and assess any exchange's reputation, security, and trading fees before trading. It's also important to consider the regulatory environment in your jurisdiction and ensure that the exchange you choose complies with applicable laws and regulations.

The Bottom Line

Cosmos has gained deserved attention for its potential to solve the problem of blockchain interoperability and fragmentation.

If you are actively looking to invest in cosmos, we suggest you need a thorough analysis and research before making a decision. Token Metrics helps with that.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.

Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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