chaindicator

What is it?

A data-driven tool to determine which blockchains are relatively undervalued based on a set of indicators of activity and adoption.

Here is the latest version we published:

How does it work?

The Chaindicator looks at the level of activity and adoption of each blockchain relative to its market capitalization. To quantify adoption and activity of a blockchain, we have identified three relevant categories of metrics: User Activity, Developer Activity and Financial Activity. For a more detailed explanation, go to this page.

How do I use it for investing?

The Chaindicator is most suitable for two types of long-term investing: Dollar Cost Averaging (DCA), and in case of a one-time investment (lump sum). Here’s an example:

Example: DCA with the Chaindicator

Imagine that every 1st of the month you want to invest $200 in relatively undervalued blockchains (L1s) based on the Chaindicator. Let’s say today is September 1st 2024 and the new Chaindicator of August 2024 just came out. We also assume that you want to spread out your investment a bit. You decide to always put 40% in the #1 undervalued blockchain, 30% in #2 and 30% in #3. For October 2023 this comes down to:

  • 40% * $200 = $80 in #1 (NEAR Protocol)

  • 30% * $200 = $60 in #2 (Sui)

  • 30% * $200 = $60 in #3 (Polygon)

In order to know how many coins of NEAR Protocol, Sui and Polygon you need to buy based on today’s price, you can use our handy free Coin Mix Calculator. Following our tool you then buy the following amounts.

That’s basically it!

The 1st of the next month you repeat the process based on the latest Chaindicator. This way you’ll gradually build up a portfolio of relatively undervalued blockchains (at time of purchase). When you follow a DCA strategy you generally don’t sell any of your investments, so you don’t have to think about what to sell or what to rebalance.

Free Email Subscribers get:

  • Bi-weekly email

  • 3 Example Portfolios suitable for different risk appetites

  • 3 Undervalued Blockchains

  • Direct signals when to stop BUYING and when it is time to start SELLING

  • Practical portfolio tools

  • Guidance for success and safety

  • The full guide of 15 Things I Wish I Knew Before I Started With Crypto

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choose your plan

Enjoy our tailor-made White Glove Service, starting at $1,500 USD.

This service is currently offered exclusively in the Netherlands.

White Glove Members get:

An all-inclusive proposition to kickstart your customized crypto portfolio. Including:

  • Full crypto onboarding support

  • Custom portfolio structuring guidance

  • Data-driven blockchain valuations

  • Actionable BUY & SELL signals

  • Single point of contact

  • Monthly check-ins

  • On-demand research

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