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 an example of a version we published earlier:
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 four relevant categories of metrics: User Activity, Developer Activity, Social 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 October 1st 2023 and the new Chaindicator of September 2023 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 (Cosmos Hub)
30% * $200 = $60 in #3 (Fantom)
In order to know how many coins of NEAR Protocol, Cosmos Hub and Fantom 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.
choose your plan
Free Email Subscribers get:
Bi-weekly email
3 Example Portfolios suitable for different risk appetites
1 Undervalued Blockchain
Direct signals WHEN to stop BUYING
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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Premium Email Subscribers get:
Everything Free Email Subscribers get plus:
Weekly email
2 additional Undervalued Blockchains
Direct signals WHEN it is time to start SELLING
More advanced portfolio tools
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