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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

Slippage and Gas Fees Killing Your Returns? One-Trade Index Solution for 2025

Token Metrics Team
13
MIN

Every crypto trader understands the frustration of carefully calculating expected profits, executing trades, and then watching as slippage and gas fees quietly eat away at those returns. In 2025’s volatile crypto market, these hidden costs have become more than just a minor annoyance—they are systematically killing portfolio performance for both active traders and passive investors alike. This points to a deeper problem: the current crypto trading system is fundamentally flawed, with inefficiencies and complexities that undermine user confidence and adoption. If you manage a diversified crypto portfolio with dozens of tokens, chances are you’re bleeding value every time you rebalance or transfer funds. Understanding exactly how much these fees impact your profits is the first crucial step toward saving your portfolio from further losses.

The Hidden Tax on Crypto Portfolio Management

To fully grasp the challenge, it’s important to break down the real cost of building and maintaining a diversified crypto portfolio in today’s environment. Two major factors contribute to the erosion of your returns: slippage and gas fees.

Slippage occurs when the price at which your trade executes differs from the price you initially expected. This discrepancy is driven by factors such as market volatility, low liquidity, and order book depth. For smaller-cap altcoins within the top 100 tokens, slippage can easily reach 1-3% per trade. This means that even if you think you’re buying or selling at a certain price, the actual execution price might be worse, reducing your value and profits.

Gas fees are another critical cost to watch closely. Every on-chain transaction—whether swapping tokens on decentralized exchanges or transferring assets between wallets—requires payment of gas fees to miners or validators who confirm transactions on the blockchain. During periods of network congestion, especially on Ethereum and other popular chains, gas prices can spike dramatically. Gas fees are calculated based on current network activity and the complexity of each trade, so understanding this calculation helps traders anticipate costs and optimize their transactions. It’s not uncommon to pay $20 to $50 or more for a single transaction. These fees are not just occasional expenses; they add up quickly and can severely impact the profitability of frequent trades.

Network congestion and the choice of blockchain can also affect the speed at which transactions are confirmed, with slower speeds leading to delays and potentially higher costs during busy periods.

When you combine these two factors, the costs compound rapidly. Imagine managing a portfolio of 50 to 100 tokens and rebalancing monthly. Each rebalance involves dozens of trades, each incurring slippage and gas fees. This results in a significant drag on your overall portfolio performance.

For example, consider a trader managing a $50,000 portfolio spread across 100 tokens who decides to rebalance monthly. Assuming an average gas fee of $15 per swap and 1.5% average slippage, the cost of rebalancing just once would be approximately $1,500 in gas plus $750 lost to slippage—totaling $2,250, or 4.5% of the portfolio value, wiped out before any market movement occurs. Over a year of monthly rebalances, these costs can exceed 20% of the initial capital, enough to completely erase gains from even a modest bull market.

The Effects of Low Liquidity

Low liquidity is one of the most persistent challenges in the crypto trading world, and its impact on your portfolio can be both immediate and severe. When liquidity dries up—whether due to market volatility, volume spikes, or simply a lack of active traders—executing trades becomes riskier and more expensive. For traders dealing with large trades or those who set tight slippage tolerance, low liquidity can quickly turn a profitable strategy into a costly mistake.

In markets with low liquidity, even modest buy or sell orders can trigger significant price moves, causing the actual execution price to deviate sharply from what you expected. This slippage is especially pronounced on decentralized exchanges, where order books are often thin and a single large trade can move the market. For example, attempting to swap a sizable amount of a low-liquidity token can result in a short squeeze, where the price spikes rapidly, leaving you with fewer tokens for your dollar and eroding your profits.

The risks don’t stop at unfavorable prices. Low liquidity also increases the likelihood of failed transactions, particularly if you set a strict slippage protection limit. If the market can’t deliver your trade within your specified slippage tolerance, the transaction may fail entirely—forcing you to pay gas fees for a trade that never completes. In periods of network congestion, this problem is magnified: not only do you face higher gas prices as users compete to get their transactions confirmed, but the odds of failed or delayed trades rise as well.

To navigate these challenges, traders rely on a combination of tools and strategies. Monitoring volume indicators can help you gauge the current liquidity of a token or market, allowing you to adjust your trade size or slippage tolerance accordingly. Some participants opt to break up large trades into smaller transactions to minimize price impact, while others use slippage protection features to cap potential losses—though this can increase the risk of failed transactions and wasted gas fees.

Timing is also crucial. Trading during periods of lower network congestion—such as off-peak hours—can help you secure lower fees and faster transaction speeds. Additionally, choosing decentralized exchanges that leverage layer two solutions or alternative chains can further reduce costs and improve execution reliability.

Diversification remains a key defense against the risks of low liquidity. By spreading your portfolio across more liquid tokens and markets, you reduce your exposure to sudden price moves and failed trades. For instance, if you notice that a particular token’s volume has dropped, it may be wise to adjust your allocation or avoid trading it until conditions improve.

Consider the example of a trader attempting to execute a large swap on a thinly traded token. Without proper precautions, they might see the price move dramatically against them, or worse, have their transaction fail and still pay a hefty gas fee. By using slippage protection, monitoring liquidity, and timing trades to avoid network congestion, traders can save money, reduce risk, and protect their portfolio’s value.

In the fast-moving world of crypto, staying informed about liquidity conditions and adapting your trading strategies is essential. Whether you’re a seasoned trader or just starting out, keeping a close watch on gas fees, slippage, and market volume can help you avoid costly mistakes and manage your portfolio effectively—even when liquidity is scarce. By leveraging analytical tools and maintaining flexibility in your approach, you can navigate the challenges of low liquidity to support long-term portfolio objectives.

Token Metrics: Leading the Crypto Analytics Revolution

This is where Token Metrics steps in to change the game. As one of the leading crypto trading and analytics platforms in 2025, Token Metrics has built its reputation on delivering institutional-grade research, data-driven insights, and powerful tools tailored to both retail and professional traders. In addition to analytics, Token Metrics provides essential services that enable seamless data flow and value transfer across the crypto ecosystem.

Founded on the principle that cryptocurrency investing should be systematic, accessible, and intelligent, Token Metrics offers comprehensive analytics covering thousands of digital assets. The platform combines proprietary market signals, AI-powered ratings, and deep quantitative analysis with on-chain data and technical indicators. As an app, Token Metrics streamlines the crypto trading process for users. But beyond just research, Token Metrics recognized a crucial problem: even the best analysis can be undermined by poor trade execution, which slippage and gas fees exacerbate.

To address this, Token Metrics developed automated index solutions designed to help eliminate the execution tax that impacts portfolio returns. These tools allow users to save on fees, reduce risk, and improve overall portfolio efficiency by streamlining the trade process. By focusing on key trading strategies and metrics, Token Metrics helps users make informed decisions with robust supporting data.

Introducing the One-Trade Solution: TM Global 100

The TM Global 100 Index is Token Metrics’ innovative response to the slippage and gas fee crisis. By streamlining exposure to the top-100 crypto assets, the index helps mitigate risks that typically affect arbitrage strategies, such as slippage and execution delays, making it easier for participants to maintain portfolio consistency. Instead of executing dozens of individual trades to achieve broad market exposure, this rules-based index delivers a complete top-100 crypto portfolio through a single transaction.

Single-Transaction Execution

The key advantage of the TM Global 100 is that you only need to execute one trade to gain exposure to 100 tokens. This means paying one gas fee instead of dozens and experiencing minimal slippage on a single, larger transaction rather than accumulated slippage across many smaller trades. Since blockchain networks have limited space, executing a single transaction also helps avoid network congestion and keeps transaction costs lower, improving overall efficiency.

The math is compelling: one transaction versus 100 transactions represents a 99% reduction in gas fees alone. Even if the index rebalances weekly—which it does automatically—you pay no extra gas fees because all internal adjustments happen within the index structure.

Automated Weekly Rebalancing at Zero Cost

Traditional portfolio management requires constant monitoring, manual calculations, and repeated trades to maintain target allocations. The TM Global 100 automates this entire process, rebalancing weekly to reflect the current top-100 tokens by market capitalization. This means no need to watch 100 different tickers across multiple decentralized exchanges, no manual rebalance timing decisions, and no accumulated transaction costs from frequent adjustments.

This automated rebalancing flow ensures your portfolio stays aligned with market shifts without the need to sign off on every trade or pay additional fees. Automation also helps catch sudden market changes or potential issues early, supporting timely adjustments.

Regime-Switching Protection

Beyond cost savings, the TM Global 100 incorporates intelligent risk management through proprietary market signal detection. When market conditions shift from bullish to bearish, the index automatically moves holdings from the top-100 crypto assets into stablecoins, providing capital protection during downturns.

This regime-switching strategy means that during bull markets, you maintain full exposure to the broad upside of the crypto market, while during bear markets, your funds are preserved in stablecoins until positive signals emerge. This automatic adjustment helps avoid the need for panic selling or multiple transactions, and also supports recovery by positioning investors to re-enter the market at more favorable times, further reducing slippage, fees, and risk.

Real-World Impact: Cost Comparison

To illustrate the benefits, let’s compare the costs of two approaches to diversified crypto exposure:

  • DIY Portfolio Management (100 tokens, quarterly rebalancing):
    • Initial build: Approximately $1,500 in gas plus $750 in slippage, totaling $2,250
    • Quarterly rebalances: $2,250 × 4 = $9,000 annually
    • Regime switches (2 per year): $2,250 × 2 = $4,500
    • Total annual execution cost: Around $13,500
  • TM Global 100 Index:
    • Initial purchase: Single transaction with typical gas fee between $15 and $50
    • Weekly rebalances: Included at zero additional cost
    • Regime switches: Automatic and free of extra fees
    • Total annual execution cost: Approximately $50

The difference—more than $13,000 saved annually—directly impacts your portfolio’s performance. When comparing these options, the TM Global 100 approach offers significantly lower transaction costs and more predictable outcomes, allowing you to keep more of your assets working for you instead of spent on fees and slippage.

Getting Started: Join the Waitlist

The TM Global 100 Index launches with an embedded, self-custodial smart wallet, ensuring you have full control of your funds while accessing institutional-grade index investing. The purchase process is simple and takes about 90 seconds:

  1. Visit the Token Metrics Indices hub at tokenmetrics.com/indices
  2. Select TM Global 100 and tap Join Waitlist
  3. Connect your wallet to preview the one-click buy flow. Ensure your wallet can accept the token for a smooth transaction.
  4. Upon launch, receive a notification and execute your purchase. Double-check details such as wallet address and network before confirming.
  5. Track your portfolio performance in real time with transparent holdings, transaction logs, and profit & loss details.
  6. All fees—including estimated gas, platform fees, and maximum slippage—are displayed clearly before you confirm your transaction.

This transparency ensures no surprises or hidden costs, allowing for informed decision-making. Transactions may be blocked due to compliance or verification issues, such as incomplete information or regulatory requirements. If a transaction is pending and not confirmed, you may have the option to cancel it by paying a higher gas fee.

The Bottom Line

In 2025’s fast-moving and often congested crypto networks, execution costs are no longer a minor inconvenience—they are a significant consideration for portfolio management. Slippage and gas fees compound quickly when managing diversified portfolios, potentially impacting 20% or more of your capital annually.

Token Metrics’ TM Global 100 Index addresses this by offering single-transaction access to a complete top-100 portfolio, automated weekly rebalancing, and intelligent regime-switching—all while ensuring full transparency and self-custody. This innovative solution allows you to focus on portfolio growth rather than unnecessary execution costs or the effects of market volatility.

If you’re looking for a more efficient, cost-effective approach to self-managed crypto index investing, joining the TM Global 100 waitlist could be your next step. Explore early access to TM100 indices at Token Metrics.

Discover Crypto Gems with Token Metrics AI

Token Metrics uses AI-powered analysis to help you uncover profitable opportunities in the crypto market. Get Started For Free

FAQs

How do slippage and gas fees impact crypto returns?

Slippage and gas fees can significantly reduce portfolio returns, especially for traders managing diversified portfolios or rebalancing frequently. Each trade may execute at a less favorable price due to slippage, while gas fees accrue for every on-chain transaction. Over time, these costs can compound, eroding the profitability of even a well-performing portfolio.

What is the TM Global 100 Index?

The TM Global 100 Index is a rules-based crypto index offered by Token Metrics. It provides diversified exposure to the top-100 cryptocurrencies in a single transaction, automating rebalancing and implementing regime-switching strategies to help minimize costs and manage risk.

How does automated rebalancing save money?

Automated rebalancing eliminates the need for multiple manual trades, each incurring their own slippage and gas fees. By consolidating portfolio adjustments into a single, internal process, automated indices can reduce execution costs and keep portfolios aligned with market shifts more efficiently.

What is regime-switching and how does it work?

Regime-switching is a risk management feature in the TM Global 100 Index that adjusts portfolio allocations based on proprietary market signals. When bearish market conditions are detected, the index shifts assets into stablecoins to help preserve capital, re-entering the market when positive signals return.

How transparent are fees with Token Metrics' index solutions?

All estimated gas, platform fees, and slippage limits are displayed clearly before transactions are confirmed. This level of fee transparency ensures that users can make fully informed decisions and are never caught off guard by hidden costs.

What are the risks of using crypto index products?

As with all crypto investments, index products involve market risk, potential smart contract vulnerabilities, and regulatory considerations. Users should conduct due diligence and ensure they understand the associated risks before participating.

Disclaimer

This content is for informational and educational purposes only and does not constitute investment advice or an offer to buy or sell any financial instrument. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. Token Metrics does not guarantee the accuracy or completeness of information or assume any liability for loss or damage resulting from reliance on this content.

Research

Crypto Index for Busy Professionals: Set-and-Forget Strategy with Built-In Protection

Token Metrics Team
16
MIN

In today’s fast-paced world, busy professionals juggle demanding careers, family commitments, and personal goals, leaving little time to dive into the complexities of cryptocurrency investing. Yet, the crypto market represents one of the most significant digital asset growth opportunities of the century. With over 6,000 tokens to track, volatile market cycles, and security considerations, actively managing a crypto portfolio can feel overwhelming. Built-in diversification in crypto index funds automatically spreads risk across multiple cryptocurrencies, reducing exposure to the volatility of any single asset. The idea of becoming a crypto day trader is exhausting just to imagine.Fortunately, there is a smarter way. More than 75% of professional investors plan to increase their crypto allocations in 2025, but they’re not spending hours monitoring charts or executing trades. Instead, they rely on automated crypto index strategies designed to work quietly and efficiently, freeing them to focus on their careers and lives. Welcome to the set-and-forget crypto revolution tailored specifically for busy professionals.

Why Set-and-Forget Crypto Fits Busy Professionals

The Busy Professional's Dilemma: Opportunity vs. Time The cryptocurrency market has experienced explosive growth, now boasting over $4 trillion in market capitalization. Bitcoin alone has averaged annual returns exceeding 100% since its inception, while institutional adoption accelerates, with more than $27.4 billion pouring into U.S. Bitcoin ETFs. These figures underscore the immense potential of digital assets as part of a diversified portfolio.However, what the headlines often omit is the staggering time commitment traditionally required to achieve such returns. Successful crypto investing typically demands hundreds of hours researching projects, analyzing market trends, executing timely transactions, managing wallets across multiple blockchains, and navigating complex tax implications. For busy professionals—whether physicians, attorneys, executives, engineers, or entrepreneurs—this level of active management is simply unfeasible.You didn’t build your career by chasing every fleeting opportunity; you succeeded through strategic, disciplined investment approaches. The same principle applies to crypto investing. To harness the growth potential of the cryptocurrency market without sacrificing your valuable time, a different investment strategy is necessary.Crypto index funds investing offers an accessible and straightforward way for busy professionals to gain diversified exposure to cryptocurrencies. This diversified approach helps mitigate risk and simplifies the investment process, making it easier to participate in the crypto market without the need for constant active management.

The Set-and-Forget Philosophy: Why It Works In traditional finance, passive investing through diversified index funds consistently outperforms active trading over the long term. Studies reveal that over 90% of day traders lose money, whereas investors who buy and hold diversified portfolios achieve solid returns with minimal effort. This evidence is now being mirrored in the evolving crypto market.Despite its higher volatility compared to traditional financial markets, the infrastructure for intelligent passive investing in crypto has matured significantly by 2025. This progress enables comprehensive exposure to the crypto market with less than two hours of annual management time—a game changer for busy professionals.The set-and-forget approach thrives on three core advantages:

  • Elimination of Emotional Decision-Making: Automated crypto index strategies operate on predetermined rules, removing the temptation to panic-sell during market crashes or chase FOMO-driven peaks. This disciplined approach consistently outperforms hands-on traders swayed by fear and greed.
  • Compound Growth Through Consistency: Instead of attempting to time the market perfectly, systematic investing captures long-term growth trends. Your portfolio benefits from the overall upward trajectory of the cryptocurrency market, smoothing out short-term volatility. This approach allows investors to gain exposure to the broader crypto market without the need for constant monitoring or active trading.
  • Opportunity Cost Optimization: Every minute spent monitoring crypto charts is time lost from advancing your career, nurturing relationships, or maintaining your health. For high-earning busy professionals, the opportunity cost of active management often exceeds any potential gains. Set-and-forget strategies return your time to your highest-value activities.

How the TM Global 100 Works

Token Metrics TM Global 100: Built for Your Schedule Token Metrics has pioneered a sophisticated set-and-forget crypto index fund designed explicitly for busy professionals: the TM Global 100 Index. Leveraging AI and machine learning to analyze over 6,000 digital assets, Token Metrics brings institutional-grade research and automation to your portfolio.Here’s why TM Global 100 fits seamlessly into your demanding schedule:

90-Second Initial Setup: Setting up your account is as quick as ordering coffee. You connect your embedded smart wallet, review the index methodology and current holdings, choose your investment amount, and execute. No complicated exchange accounts, no juggling multiple wallets, and no manual token purchases. The entire process is streamlined for non-technical users.

Weekly Automatic Rebalancing: Every Monday at 00:00 UTC, your portfolio automatically rebalances to maintain optimal exposure to the top 100 cryptocurrencies by market capitalization. The system sells tokens that have dropped out of the Top 100, buys new entries, adjusts weights to reflect market cap changes, and optimizes transaction fees—all handled by smart contracts. The TM Global 100 is a holdings based index fund that follows a systematic approach to tracking indices of the top cryptocurrencies, ensuring the portfolio remains aligned with market trends. You receive optional notifications but no action is required.

Transparent Monitoring Without Active Management: Token Metrics offers a clean dashboard with an interactive treemap of your holdings, real-time profit and loss tracking, transaction history, and performance analytics. Whether you check monthly, quarterly, or less frequently, your portfolio grows independently of your attention.

Tax Documentation Simplified: All transactions are logged with timestamps, quantities, prices, and fees, making tax reporting straightforward. Export data to popular crypto tax software or share with your accountant without scrambling to reconstruct trades.This infrastructure means you spend just 90 seconds setting up, zero hours managing ongoing operations, and perhaps 30 minutes quarterly reviewing performance. In total, less than two hours annually provides diversified exposure to 100 leading cryptocurrencies.

Index Methodology and Construction: How Your Crypto Index Is Built The foundation of any successful crypto index fund lies in its index methodology and construction. This process determines which cryptocurrencies are included in the fund, how much weight each one carries, and how often the portfolio is adjusted to reflect changes in the market. For busy professionals, understanding these mechanics is key to appreciating how crypto index funds provide diversified exposure while managing the risks of the volatile crypto market.Most crypto index funds start by selecting a universe of individual cryptocurrencies based on specific criteria—such as market capitalization, liquidity, or project fundamentals. For example, a market cap-weighted index fund will allocate a larger portion of the portfolio to established cryptocurrencies like Bitcoin and Ethereum, as their market capitalization dominates the crypto market. This approach helps ensure that your portfolio reflects the overall market trends and reduces the impact of any single cryptocurrency’s performance.Alternatively, some index funds use an equal-weighted methodology, giving each cryptocurrency the same allocation regardless of its market cap. This can increase exposure to emerging projects but may also introduce more volatility. Periodic rebalancing—often weekly or monthly—ensures that the portfolio stays aligned with the chosen index methodology, automatically adjusting for market changes and maintaining diversified exposure.By relying on a transparent, rules-based index methodology, crypto index funds help investors navigate the complexities of the crypto market, spreading risk across a broad portfolio and reducing the need for constant oversight. This systematic approach is especially valuable for those who want to invest in crypto without getting bogged down in the details of individual cryptocurrencies.

Comparing Traditional and Crypto Index Funds

Traditional Index Funds vs Crypto Index Funds: What Busy Professionals Need to Know For busy professionals weighing their investment options, it’s important to understand how traditional index funds and crypto index funds differ significantly. Traditional index funds typically track established indices like the S&P 500, offering diversified exposure to a basket of stocks or bonds. These funds are known for their stability, lower risk, and steady long-term growth, making them a familiar choice for many investors.Crypto index funds, on the other hand, invest in a portfolio of digital assets such as Bitcoin, Ethereum, and other leading cryptocurrencies. While crypto index funds offer the potential for higher returns, they also come with greater volatility and risk due to the rapidly evolving nature of the cryptocurrency market. The value of a crypto index can fluctuate dramatically in response to market trends, regulatory changes, or technological developments.For those new to crypto investing, traditional index funds may feel more comfortable and predictable. However, professionals with a higher risk tolerance and a long-term investment horizon may find that crypto index funds offer unique opportunities for growth and diversification that traditional financial markets can’t match. Ultimately, the right choice depends on your individual risk tolerance, investment goals, and willingness to embrace the dynamic world of digital assets.

Built-In Protection: The Safety Net Busy Professionals Need Unlike traditional buy-and-hold strategies, Token Metrics’ TM Global 100 includes intelligent risk management designed to protect your investment without requiring your attention. This is critical in the highly volatile crypto market, which has historically experienced multiple 80%+ corrections. Market volatility is a significant risk factor, and the TM Global 100 is specifically designed to address this through its automated risk management features.The TM Global 100 employs regime-switching logic, an AI-driven method that dynamically adjusts portfolio exposure based on market conditions. When proprietary market indicators signal bullish regimes, your portfolio holds the full basket of top 100 cryptocurrencies, capturing growth across the market. When bearish signals emerge, the system automatically converts holdings into stablecoins like USDC, preserving capital during downturns. Once conditions improve, funds redeploy back into the crypto market at lower prices.This automated safety net prevents panic-selling and shields your portfolio from severe drawdowns. For busy professionals without time to monitor market changes constantly, this feature offers peace of mind and a disciplined approach to risk.Consider a real-world example: you invest $100,000 in January, and by March, your portfolio grows to $140,000 amid a strong market. In April, bearish signals trigger a shift to stablecoins, locking in your gains. While the broader market drops 40% over the next two months, your position remains stable. When bullish conditions return in July, the system re-enters the market at lower prices, increasing your token holdings—all without you lifting a finger.

AI Filtering, Consistency, and Security

Quality Over Quantity: AI-Powered Filtering Not all cryptocurrencies in the Top 100 by market cap deserve inclusion in your portfolio. Some represent genuine innovation, while others are speculative or risky projects. Token Metrics enhances traditional market cap indexing with sophisticated quality filters powered by AI.Each token is evaluated using two complementary ratings:

Trader Grade: This rating assesses short-term momentum, technical strength, volume trends, and timing signals to ensure tokens demonstrate genuine market strength rather than pump-and-dump schemes.

Investor Grade: This grade evaluates long-term fundamentals such as development activity, network growth, use case viability, team quality, and competitive positioning, highlighting sustainable projects with real value.By analyzing over 80 data points per token, Token Metrics continuously refines your exposure, favoring quality holdings over blind market cap weighting. This institutional-grade due diligence is impossible to replicate manually and crucial for busy professionals who lack time for deep research.

The Compound Effect: Why Consistency Beats Timing One of the biggest pitfalls for busy professionals entering crypto is attempting to time the market perfectly. Waiting for the “right moment” often leads to missed rallies, panic during corrections, and suboptimal returns.Token Metrics’ set-and-forget approach aligns with Nobel Prize-winning economic research showing that consistent, disciplined investing outperforms attempts at market timing. By maintaining systematic exposure during bullish regimes and automatically managing risk during bearish phases, the TM Global 100 captures the long-term growth of the cryptocurrency market without emotional stress or guesswork.In fact, in 2025, over 60% of cryptocurrency trading volume flows through automated systems. Institutional investors, family offices, and professional traders overwhelmingly favor systematic strategies over reactive trading. Token Metrics democratizes access to these sophisticated investment methods for individual busy professionals.

Security Without Complexity Security is a paramount concern for busy professionals considering crypto investments. High-profile exchange hacks, lost private keys, and stolen funds are common headlines. Yet, few have the time or expertise to become cybersecurity experts.Token Metrics addresses these concerns with embedded smart wallet technology that offers self-custody without complexity. Your assets remain under your control, not on vulnerable exchanges. The wallet uses advanced features like multi-party computation, secure key sharding, social recovery mechanisms, and automatic security updates to protect your holdings.This approach combines institutional-grade security with consumer-grade simplicity. You don’t need to memorize seed phrases or manage hardware wallets. The system is designed so that busy professionals can confidently secure their digital assets without technical headaches.

Costs, Taxes, Getting Started, and Conclusion

Investment Minimums and Fees: What to Expect When considering crypto index funds, it’s essential to be aware of investment minimums and fees, as these factors can impact your overall returns. Minimum investment requirements vary by provider, with some crypto index funds accessible for just a few hundred dollars, while others may require a more substantial initial commitment.Management fees are another key consideration. Crypto index funds typically charge annual management fees ranging from 0.5% to 2.5%, which cover the costs of research, trading, and portfolio administration. Some funds may also include additional expenses, such as an expense ratio or transaction fees, which can differ significantly between providers.Before investing, take the time to review the fee structure and minimum investment requirements of any crypto index fund you’re considering. Understanding these costs will help you select a fund that aligns with your investment goals and risk tolerance, ensuring that fees don’t erode your returns over time. For busy professionals, choosing a fund with transparent, reasonable fees and accessible minimums can make crypto investing both efficient and cost-effective.

Tax Implications: Planning Ahead for Peace of Mind Tax implications are an important aspect of investing in crypto index funds that busy professionals can’t afford to overlook. In most jurisdictions, gains from the sale or exchange of cryptocurrencies are subject to capital gains tax, with rates depending on your income bracket and how long you’ve held the investment. The tax treatment of crypto index funds may also vary based on the fund’s structure and local regulations.To avoid surprises at tax time, it’s wise to consult with a tax professional who understands both traditional and digital asset investments. Keeping detailed records of all your transactions—including dates, amounts, and the purpose of each trade—will make tax reporting much simpler and help ensure compliance with current laws.By planning ahead and staying organized, you can minimize your tax liabilities and maximize your after-tax returns. This proactive approach allows you to focus on your long-term investment goals, knowing that your crypto index fund investments are managed efficiently and in line with regulatory requirements. For busy professionals, a little preparation goes a long way toward achieving peace of mind and financial success.

The Cost of Inaction for Busy Professionals While you’ve been “too busy” to invest systematically in crypto, the asset class has created more millionaires in the past decade than perhaps any other investment vehicle. Many of your peers—doctors, lawyers, executives—who allocated even modest portions of their portfolios to crypto index funds have experienced life-changing returns.The question is no longer whether busy professionals should invest in crypto. With 75% of institutional investors increasing allocations and crypto entering mainstream finance through ETFs, stablecoins, and tokenized assets, the opportunity is clear. The real question is how to invest intelligently without sacrificing the time that made you successful in your primary career.Token Metrics’ TM Global 100 offers the answer: broad exposure to crypto’s growth potential, built-in risk management, quality filtering of holdings, automated execution requiring zero ongoing effort, and transparent monitoring that fits your schedule.

Getting Started: Your Two-Hour Annual Commitment For busy professionals ready to add sophisticated crypto exposure to their portfolios, the process is straightforward:Hour One (Initial Setup): Visit the Token Metrics platform, review the TM Global 100 strategy and index methodology, create your embedded smart wallet (takes about 90 seconds), decide your allocation based on your investment goals and risk tolerance, and execute your initial purchase. That’s it.Quarterly 15-Minute Check-ins (Optional): Review your portfolio’s performance dashboard to see current holdings and returns, examine transaction logs to understand rebalancing activity, adjust your allocation if your circumstances change, and export data for tax reporting.This minimal time commitment ensures your crypto portfolio grows systematically while you focus on your career, family, and health.

Conclusion: Smart Professionals Automate The most successful professionals understand a core principle: automate everything that can be systematized and concentrate your energy on what requires your unique skills. Crypto investing is no exception.Token Metrics’ TM Global 100 represents years of development tailored for investors demanding sophistication without constant involvement. AI-powered analytics track over 6,000 projects, weekly automatic rebalancing captures market trends, regime-switching protection manages downside risk, quality filtering ensures legitimate exposure, and embedded wallets provide security without complexity—all functioning seamlessly whether you monitor daily or not.In 2025, the barrier to crypto investing is no longer technical knowledge or education—it’s decisional. Will you let being busy prevent you from participating in one of the most significant wealth-building opportunities of your generation? Or will you spend 90 seconds setting up a systematic, intelligent crypto index fund that works while you focus on what truly matters?For busy professionals who built successful careers through discipline, strategy, and intelligent automation, the choice is clear. Welcome to set-and-forget crypto investing. Your future self will thank you.Click here to get early access to TM100 indices at Token Metrics.

Discover Crypto Gems with Token Metrics AI

Token Metrics uses AI-powered analysis to help you uncover profitable opportunities in the crypto market. Get Started For Free

FAQ: What is a crypto index fund?

A crypto index fund provides diversified exposure to a basket of cryptocurrencies based on rules such as market capitalization, liquidity thresholds, and scheduled rebalancing, reducing reliance on any single asset.

FAQ: How often do crypto index funds rebalance?

Rebalancing schedules vary by provider and methodology. Some funds rebalance weekly or monthly to maintain target weights and reflect market changes, while minimizing tracking error and transaction costs.

FAQ: What are the main risks of crypto index funds?

Key risks include market volatility, regulatory changes, custody/security considerations, and methodology risk (e.g., how constituents are selected and weighted). Transparent rules and risk management can help address these factors.

FAQ: How do fees impact returns?

Management fees, expense ratios, and transaction costs reduce net performance. Reviewing a fund’s full fee schedule helps you understand potential drag on returns and compare providers objectively.

FAQ: What tax considerations apply?

Tax treatment depends on jurisdiction and holding period. Capital gains may apply on sales and rebalancing events. Maintaining detailed records and consulting a qualified tax professional is recommended.

FAQ: How does AI help in crypto indexing?

AI can assist with quality screening, anomaly detection, market regime analysis, and risk controls. Platforms like Token Metrics use data-driven models to support systematic selection and monitoring.

Disclaimer

This article is for educational and informational purposes only and should not be construed as financial, investment, or tax advice. Digital assets are volatile and carry risk. Always conduct your own research and consult qualified professionals regarding your specific circumstances.

Research

Advanced Trader's Secret Weapon: Core Index Position with Satellite Trading Strategy

Token Metrics Team
10
MIN

Professional traders know something that most retail investors miss: the path to consistent crypto returns isn’t about hitting every moonshot or timing every swing perfectly. It’s about combining disciplined, systematic exposure with strategic, high-conviction plays, all guided by a clear trading plan.

Enter the core-satellite strategy—a portfolio construction approach used by institutional investors in traditional markets for decades and now adapted by sophisticated crypto traders to balance returns and risk. When executed with the right tools, such as essential indicators and analysis platforms, this approach can improve risk-adjusted outcomes while freeing up mental bandwidth for the trades that truly matter.

What Is the Core-Satellite Strategy?

The core-satellite approach divides a portfolio into two distinct components, each serving a specific purpose:

The Core (60–80% of capital): A stable, diversified position designed to capture broad market exposure with minimal active management. This is the foundation—steady, rules-based, and disciplined—focused on long-term growth and stability. The core exists to participate in major market moves while mitigating the impact of catastrophic individual asset failures.

The Satellites (20–40% of capital): Active trading positions based on high-conviction theses, technical setups, or specific catalysts. These are tactical plays where traders leverage analysis, timing skills, and market insights to seek outperformance.

The strength of this structure is that it removes the pressure to be right about everything. The core ensures you’re never completely out of the market during explosive rallies, while satellites provide the flexibility to take calculated risks on targeted opportunities.

Why Advanced Traders Need a Disciplined Core

If you’re an active crypto trader, you may recognize the paradox of skill: the better you get at identifying opportunities, the more tempting it becomes to deploy most or all of your capital into high-conviction plays. That approach carries material risks:

  • Opportunity Cost Risk: With a fully allocated set of 3–5 positions, a sector rotation can cause you to miss broader market movement. A DeFi position doesn’t benefit when AI tokens suddenly rally.
  • Emotional Exhaustion: Managing a fully active portfolio requires constant monitoring and judgment. Every position feels high-stakes, creating decision fatigue that can degrade trading quality over time. A lack of discipline often leads to impulsive decisions and avoidable mistakes.
  • Drawdown Exposure: Concentration amplifies both gains and losses. One or two wrong calls can set back months of progress, even with a solid win rate, illustrating how easy it is to lose money without proper risk controls.
  • Rebalancing Complexity: Attempting diversified exposure through active management means constant rebalancing, transaction costs, and execution slippage—on top of finding and executing your best ideas.

A disciplined core helps address these issues by providing a stable foundation that requires minimal intervention while maintaining broad market participation.

Token Metrics: The Platform Powering Smart Traders

This is where Token Metrics can transform the workflow. As a crypto trading and analytics platform, it offers institutional-grade research combined with actionable execution tools. As a comprehensive trading hub, it integrates advanced charting, indicator support, and streamlined execution to support effective strategies.

What sets Token Metrics apart:

  • AI-Powered Asset Ratings: Proprietary algorithms analyze thousands of cryptocurrencies across technical indicators, on-chain metrics, development activity, social sentiment, and fundamentals—producing quantitative ratings designed to cut through noise.
  • Comprehensive Market Signals: Real-time bull/bear regime detection using signal processing that blends price action, volatility, and correlation structures—refined through years of testing.
  • Research Infrastructure: Deep-dive reports on emerging narratives, sector rotations, and specific token analysis from a team combining traditional finance expertise with native crypto insights.
  • Portfolio Tools: Watchlists, performance tracking, and infrastructure to manage positions efficiently.

Even with strong analysis, execution matters. The platform’s latest innovation—automated index products—gives advanced traders a disciplined core position to complement active trading.

TM Global 100: The Disciplined Core Position

The TM Global 100 Index is designed to serve as the core in a core-satellite strategy. Key considerations for advanced traders include position sizing, risk management, and consistent rules-based exposure.

Automatic Broad Exposure

The index holds the top 100 cryptocurrencies by market capitalization, rebalancing weekly. This means:

  • You participate in the next category winner automatically.
  • Sector rotations can work in your favor—when flows shift to DeFi, AI, gaming, or infrastructure, you’re positioned in leaders.
  • New tokens entering the top 100 are added automatically; declining projects are removed. Assets within the index are actively traded to maintain exposure with disciplined, systematic management.

Intelligent Risk Management

The regime-switching mechanism implements what many traders intend to do but often struggle with under pressure: reducing exposure when conditions deteriorate.

When Token Metrics proprietary signals detect bearish conditions, the index moves to stablecoins, systematically selling assets to help preserve capital during downturns. When bullish conditions return, it redeploys to the top 100. This systematic approach removes emotion from core management.

Zero Maintenance Required

Advanced traders can focus on identifying specific opportunities and executing tactical trades. TM Global 100 runs autonomously—no manual rebalancing, no constant monitoring, no gas fees from continual adjustments.

Complete Transparency

Holdings are visible at any time through real-time treemaps and tables, with transaction logs showing every rebalance. You maintain full visibility while outsourcing execution.

Technical Analysis and Satellite Trading

Technical analysis is a cornerstone of active trading, equipping traders to interpret historical price behavior and anticipate potential trends. By mastering these tools, traders can build structured strategies that use patterns and indicators to identify potential entry and exit zones.

Moving averages help smooth price data to reveal trend direction and potential reversals. Combined with candlestick patterns—visual representations of price action that can signal shifts in sentiment—these tools can help traders spot opportunities and manage trades with greater confidence.

For newer traders, understanding how to interpret price charts and analyze real-time data is essential. A well-structured trading course can accelerate learning, covering support/resistance, key patterns, and risk management practices in the stock market and other asset classes.

Ultimately, technical analysis supports informed decisions grounded in objective data rather than emotion. With continuous refinement and discipline, traders can navigate volatility, manage risk, and work toward long-term trading consistency.

With 60–80% of capital deployed in the TM Global 100 core, attention can shift to satellites. This is where the Token Metrics research platform becomes a competitive advantage:

  • High-Conviction Thesis Plays: Use AI ratings and research reports to surface assets with strong fundamentals that haven’t reached top-100 status yet. Apply appropriate position sizing across markets such as crypto, forex, commodities, and stocks where relevant.
  • Technical Setups: Monitor technical tools to identify short-term opportunities. With a core providing baseline exposure, trade breakouts, oversold bounces, and momentum signals. Use moving averages and volume for confirmation and consider higher timeframes for signal reliability.
  • Narrative Rotations: When research identifies emerging narratives (e.g., new Layer 2 launches, evolving regulation, or technological breakthroughs), use satellites to overweight those themes.
  • Event-Driven Trades: Major unlocks, protocol upgrades, partnership announcements, or macro events can create tactical windows. A core position provides stability while satellites target catalysts. For example, moving averages and volume on a price chart can help gauge momentum after an event and inform potential exit timing.

Consistent practice is essential to master these techniques and improve trading performance.

Implementation: A Practical Framework

Here is a common way sophisticated traders put the approach into practice:

Portfolio Allocation:

  • 70% in TM Global 100 (core position)
  • 30% in 5–8 satellite positions (each approximately 3–6% of total capital)

Position Management:

  • Core: Set and review periodically to ensure allocation hasn’t drifted significantly.
  • Satellites: Active management with clearly defined entry/exit criteria, stop losses, and profit-taking rules.

Rebalancing Rules:

  • If satellites outperform significantly, skim profits and move excess back to the core.
  • If satellites underperform but the core maintains value, there is dry powder from stable portfolio value.
  • Maintain a rough 70/30 split, allowing about 10% variance before rebalancing.

Avoiding common errors—such as improper position sizing or neglected rebalancing—helps support long-term consistency.

Risk Management:

  • The core position includes downside considerations via stablecoin switching.
  • Satellites use strict stop losses (often 15–25% depending on volatility).
  • No single satellite exceeds roughly 8% of total portfolio exposure.

Track Performance: Regularly monitor results to identify what’s working and refine the plan.

Real-World Edge: Time Arbitrage

One of the most underrated benefits of the core-satellite approach is time arbitrage. By reducing day-to-day portfolio maintenance, you can reallocate time and focus to high-impact work:

  • Conduct deeper research on satellite opportunities.
  • Wait for higher-quality setups instead of forcing marginal trades.
  • Maintain emotional equilibrium during volatility.
  • Preserve decision-making energy for critical moments.

Professional traders understand that attention is finite. The core-satellite structure helps optimize how it’s spent and can support a disciplined approach to long-term portfolio building.

Getting Started

Implementing this strategy with Token Metrics is straightforward:

  • Join the TM Global 100 waitlist at tokenmetrics.com/indices/global-100.
  • Access the Token Metrics research platform to identify satellite opportunities using AI ratings, market signals, and analyst reports.
  • At launch, deploy a core allocation to TM Global 100 via the one-click embedded wallet once your account is set up and funded.
  • Construct 5–8 satellite positions using Token Metrics analytics.
  • Track performance through the unified dashboard with real-time P&L and transaction history.

Education is key to successful trading. Users can access educational videos and tutorials to learn more about the platform, trading strategies, and technical analysis—helping both beginners and advanced traders make informed decisions. The embedded self-custodial wallet means you maintain control of funds while accessing institutional-grade index management.

The Bottom Line

Many market participants overcomplicate strategies or follow the crowd. Advanced traders benefit from smarter infrastructure. The core-satellite framework—supported by the Token Metrics analytics platform and the TM Global 100 Index—offers systematic market exposure while preserving the flexibility to apply a trading edge where it matters most.

Build a disciplined core, express high-conviction ideas as satellites, and let a rules-based process help shape outcomes over time. If you have questions, explore additional articles and engage with the community—share experiences and ask for feedback. Click here to get early access to TM100 indices at Token Metrics.

Enhance Your Trading with Token Metrics

Token Metrics offers real-time prices, trading signals, and on-chain insights to help you make informed decisions. Start Trading Smarter Today

FAQs

What is a core-satellite crypto portfolio?

It’s a structure that combines a rules-based core for broad market exposure with smaller, actively managed satellite positions targeting specific opportunities, themes, or catalysts. The goal is balance and discipline.

How does TM Global 100 fit into this approach?

TM Global 100 functions as a rules-based, diversified core that rebalances weekly and can shift to stablecoins in bearish regimes, allowing traders to focus on active satellite ideas while maintaining market participation.

What tools help manage risk in satellite positions?

Common practices include predefined entry/exit criteria, stop losses sized to volatility, position size limits, and regular performance reviews. Objective rules help reduce emotional decision-making.

Why is technical analysis useful for satellites?

Technical analysis provides structured ways to interpret price action, trends, and momentum. Tools like moving averages, volume, and candlestick patterns can help time entries and exits with greater consistency.

How often should a portfolio be rebalanced?

Many traders monitor allocations periodically and set thresholds (for example, allowing a variance around a target split) before rebalancing. The core’s systematic processes can reduce maintenance demands.

Does this framework apply beyond crypto?

Yes. The core-satellite concept originated in traditional markets and can be adapted to asset classes such as equities, commodities, and forex, depending on tools, liquidity, and risk tolerance.

Disclaimer

This content is for educational and informational purposes only and should not be interpreted as investment, financial, legal, or tax advice. Digital assets are volatile and carry risk, including potential loss of capital. Always conduct independent research and consider consulting a qualified professional before making financial decisions. References to specific indices, platforms, or tools are for illustration and do not constitute endorsements or recommendations.

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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.

Crypto Basics

Ethereum Staking - What It Is and How to Stake ETH?

Token Metrics Team
5 minutes
MIN

Ethereum staking is a new way to earn rewards for holding ETH. It’s a process that involves depositing your Ether into a smart contract and receiving rewards in the form of ETH.

Ethereum staking has become increasingly popular over the past year and is expected to continue to grow. You can maximize your rewards and minimize your risks with the right approach. This article will explain Ethereum staking, its pros and cons, how to get started, and much more.

What is Ethereum Staking?

Ethereum staking is a way to earn rewards by depositing your ETH into a smart contract. It may require you to lock away your ETH in the contract for a certain period of time. But with liquid staking becoming popular, you can trade your staked tokens with ease. During this time, you will earn rewards based on the amount of Ethereum you have staked and the length of time you have staked for. Ethereum staking is a great way to earn passive income, as you don't have to manage your ETH actively.

The process of Ethereum staking works like this: you first need to choose a staking platform and deposit your ETH into a smart contract. The platform will then track your ETH and calculate your rewards. Once you have staked your ETH, you will receive rewards in the form of ETH. The rewards you receive can vary depending on the platform, the length of time you've staked for, and the amount of ETH you've staked.

Ethereum staking is an important part of the Ethereum network. It helps to secure the network and allows users to receive rewards for their contribution. By staking your ETH, you're helping to keep the Ethereum network secure and functioning properly.

Pros and Cons of Staking Ethereum

Before you decide to stake your ETH, it’s important to understand the pros and cons of staking. Ethereum staking has the potential to be very profitable, but there are also some risks associated with it.

One of the biggest pros of staking Ethereum is that it's an easy way to earn passive income. You don't have to manage your ETH actively; you can earn rewards by holding onto it. The rewards can be significant depending on the platform and the amount of ETH you've staked.

Another pro of staking ETH is that it helps to secure the Ethereum network. By staking your ETH, you're helping to keep the network secure and functioning properly. This helps to ensure the overall success of the network and can be beneficial for everyone involved.

On the other hand, there are some risks associated with Ethereum staking.

One of the biggest risks is that you could lose your ETH if your platform goes out of business or is hacked. It's important to ensure you're only using trusted platforms and taking the necessary steps to secure your ETH.

Additionally, you won't be able to access your ETH until the staking period is complete (until it changes with upgrades), which could be months or years.

How to Get Started with Ethereum Staking?

The process of staking ETH is relatively straightforward, but there are a few important steps you should take.

The first step is to choose a staking platform. Several different staking platforms are available, so it's important to research and choose one that fits your needs. You should also ensure that the platform is secure and that your ETH is safe.

Once you've chosen a platform, the next step is to deposit your ETH into the platform's smart contract. You'll need to enter the amount of ETH you want to stake, and the time you want to stake for.

That's it, you are now earning ETH as long as you are staked.

Ethereum Staking Pools

Ethereum staking pools are important because it allows you to stake any amount of ETH. If they did not exist, you would need to stake at least 32 ETH to become a validator. Pooling allows everyone to contribute ETH to fullfill the required amount of ETH to start staking.

There are several different staking pools available, so it's important to do your research and choose one that fits your needs. Most staking pools have a minimum amount of ETH you need to stake, so make sure you know this before joining. Additionally, some pools may charge fees for their services, so make sure to factor this into your decision.

How Much Can You Earn Staking ETH?

The amount of rewards you can earn from staking ETH can vary depending on the platform you're using, the amount of ETH you've staked, and the length of time you've staked for. Generally speaking, the more ETH you stake and the longer you stake for, the more rewards you'll receive.

The rewards you receive can also vary depending on the staking pool you're using. Some pools may offer higher rewards than others, so it's important to research and choose one that fits your needs.

Is Staking ETH a Good Idea?

Ethereum staking can be a profitable way to earn passive income, but it’s important to understand the risks involved. As with any investment, there’s always a chance that you could lose your ETH if the platform you’re using gets hacked. Additionally, you won’t be able to access your ETH until the staking period is complete, so make sure you're aware of this before getting started.

Overall, Ethereum staking can be a great way to earn passive income, but it's important to research and understand the risks before getting started. If you're willing to take risks and do your due diligence, Ethereum staking can be a great way to earn rewards.

The Bottom Line

Ethereum staking is a great way to earn rewards for holding onto your ETH. It's a process that involves depositing your ETH into a smart contract and receiving rewards in the form of ETH.

You can maximize your rewards and minimize your risks with the right approach. This article explains ethereum staking, its pros and cons, how to get started with it, and much more. If you're looking for a way to earn passive income, Ethereum staking could be a great option for you.

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