How does on-chain data affect your investment decisions?

Firstly, on-chain data gives me firsthand insight into the liquidity and activity of a particular cryptocurrency. For example, the number of active addresses, trading volume, and the flow of funds in and out directly reflect the market's heat and the movement of capital. If the on-chain trading volume of a cryptocurrency suddenly increases significantly, it often means that a large fund may be positioning itself, or that market sentiment has changed. At this point, I will adjust my strategy immediately, possibly increasing my position or being wary of risks.

Secondly, on-chain data can reveal hidden 'indicators'. For instance, the transfer behaviors of large holders. If a large holder transfers a substantial amount of assets in a short period, this could be a warning sign indicating that the market may face selling pressure. Conversely, if the primary holders of a cryptocurrency start accumulating, it could signal that the coin is about to break out. By analyzing these on-chain dynamics, I can predict potential market fluctuations.

More importantly, on-chain data allows me to avoid some 'speculative' traps. In the BTC community, many people make profits by trading short-term price differences, and the market is flooded with numerous junk coins and worthless speculative projects. By looking at on-chain data, I can quickly identify which projects are just hype and which have actual technological support and a real user base.

On-chain data is an indispensable tool in my investment decisions; it allows me to view the market more rationally, enabling me to avoid risks and seize truly promising opportunities. If you have not yet paid attention to on-chain data, you may have missed many opportunities to make big profits!