The Blum Academy recently released an in-depth guide titled “What is On-Chain Analysis? Track the Crypto Market Like a Pro,” shedding light on the transformative power of on-chain data in crypto trading. Launched on October 25, this guide explores how on-chain analysis gives crypto investors the market insights they need for data-driven trading decisions. Previously, we discussed topics such as the “Blum How to Trade Perps”, “Blum How to Find Altcoins”, ” Blum Sharding Explained“,” Blum Cryopto Terms” , ” Blum Token Burning“, “Blum Bitcoin Rainbow Chart Code,” “Blum Play Type and Track Code,” and “What Are AMMs Blum Code. This article dives into on-chain analysis essentials and presents a step-by-step guide on trading perpetual contracts (perps) on Blum Code, helping traders navigate the market more effectively. Whether you’re a seasoned trader or a beginner, this guide offers actionable insights to leverage data for smarter trading.

What is On-Chain Analysis Blum Code?

On-chain analysis examines blockchain data directly to understand market trends, asset flows, and network health. With blockchain’s transparency, users can analyze real-time wallet activities, transactions, and smart contracts, offering a unique view into market sentiment and trends that traditional analysis can’t match.

Why On-Chain Analysis is Important?

Market Sentiment: By studying wallet activity and transaction volumes, traders gauge asset accumulation or distribution, aiding in price trend predictions.
Supply and Demand Dynamics: Key metrics show asset distribution, hinting at potential future liquidity and market direction.
Network Health: Indicators like hash rates and active wallet numbers reflect a blockchain’s security and user engagement.
Trend Identification: On-chain analysis can reveal anomalies, helping traders anticipate volatility or detect possible market manipulation.

Key On-Chain Metrics for Blum Code

The “What Is On-Chain Analysis Blum Code” guide emphasizes key on-chain metrics that offer a comprehensive view of an asset’s market health. The Blum Code Guide focuses on several essential metrics to understand market dynamics:

Total Value Locked (TVL): Especially relevant for DeFi, TVL reflects assets locked in smart contracts, indicating user confidence.
Whale Ratio: Measures the share of assets held by large holders, showing potential market impact from significant players.
Exchange Flow: Tracks inflows and outflows on exchanges, signaling likely buying or selling intent.
Network Realized Profit and Loss (NRPL): Indicates overall market profitability by showing realized profits and losses.
Dormant Addresses: Increased activity from long-inactive wallets can signal upcoming shifts in market sentiment.

How On-Chain Analysis Works ?

Data Collection and Aggregation: Blockchain data, like transactions and wallet addresses, is gathered from networks (e.g., Bitcoin, Ethereum).
Metric Analysis: Analysts use metrics to interpret data on wallet flows, exchange balances, and more.
Visualization Tools: Platforms like Glassnode and CryptoQuant provide user-friendly visuals, simplifying data analysis for traders.
Decision-Making: Armed with these insights, traders make more informed choices on asset allocation, trade timing, and risk management.

What Are Perpetual Contracts (Perps)?

Perpetual contracts, or “perps,” function similarly to futures contracts but lack an expiration date. This allows traders to hold positions as long as they meet margin requirements, providing flexibility and the ability to profit in rising or falling markets.

Why Trade Perps on Blum Code?

Blum Code’s trading features make it a top choice for trading perps:

High Leverage: With leverage options up to 100x, traders can amplify their exposure with minimal capital.
Competitive Fees: Low trading fees are especially beneficial for active traders.
Asset Variety: Trade perps on major cryptocurrencies, including Bitcoin, Ethereum, and various altcoins.
Advanced Trading Tools: Blum Code’s platform offers sophisticated charting and analytics to support decision-making.

How to Trade Perps on Blum Code: Step-by-Step Guide

Step 1: Create and Verify Your Account

Visit Blum Code’s website and sign up using your email or phone number.
Complete the KYC process for full access to features and enhanced security.

Step 2: Deposit Funds

Blum Code accepts cryptocurrency deposits (BTC, ETH, USDT) and, in some regions, fiat currency deposits.

Step 3: Go to the Perpetual Trading Section

Access the perps trading interface, where you’ll see price charts, order books, and recent trades for available pairs.

Step 4: Choose Your Leverage

Adjust leverage using the slider, from 2x up to 100x, understanding that higher leverage means greater risk and reward potential.

Step 5: Place Your Trade

Market Order: Executes at the current market price.
Limit Order: Executes when the asset reaches your specified price.
Stop-Loss Order: Limits losses by closing your position if the price moves against you.

Step 6: Monitor Your Position

Track your trade with margin levels, funding rates, and stop-loss orders to stay in control.

Step 7: Close Your Trade

Manually close your position or set take-profit/stop-loss orders to finalize profits or limit losses.

Pro Tips for Trading Perps on Blum Code

Start Small: Beginners should trade with smaller amounts and lower leverage to minimize risk.
Set Stop-Losses: Protect your position by setting stop-loss limits.
Stay Informed: Use Blum Code’s tools to keep up with market trends and analysis.
Practice with a Demo Account: Test strategies in demo mode if available to gain confidence without risking real funds.

Explore the Full Potential of Blum Coins on WEEX

WEEX stands out as a leading cryptocurrency exchange, offering a seamless trading experience enhanced by sophisticated tools, competitive pricing, and robust security measures. The platform prioritizes user protection with multi-layered security features, including a 1000 BTC investor protection fund, and adheres to financial regulations in multiple jurisdictions. Catering to both newcomers and experienced traders, WEEX supports a diverse range of cryptocurrencies, such as DOGEUSDT, XRP/USDT, WXT/USDT, and SOL/USDT, creating an intuitive trading environment. Users can also benefit from advanced trading options like WEEX Futures Pro, WEEX We-Launch, and WEEX Copy Trading Pro

Start Your Perp Trading Journey on Blum Code

Trading perps on Blum Code offers extensive opportunities for those in the Cryptofan community and newcomers looking to leverage crypto markets with flexibility and advanced tools. By following this comprehensive guide, you can confidently enter the world of perpetual contracts on Blum Code, making the most of market opportunities with insights from on-chain analysis. For the latest trends and tips, stay tuned to updates from WEEX will help you know more details about Blum Daily Code news and better understand the overall landscape of the cryptocurrency market.

What is On-Chain Analysis and How to Trade Perps: The Ultimate Blum Code Guide