CoinGecko is my favorite data aggregator when it comes to tracking and evaluating cryptocurrencies and cryptocurrency exchanges.
I am also using CoinGecko for managing my portfolio, looking up crypto terms, and collecting candies.
What Is CoinGecko?
CoinGecko launched in 2014 as one of the earliest and largest data aggregators in the cryptocurrency industry, taking a more holistic approach to tracking tokens and cryptocurrency exchanges. CoinGecko currently (12/28/2020) tracks 6,074 different coins and tokens and over 400 different exchanges.
Many of you also know CoinGecko from the CoinGecko widgets that can be included in a post on Publish0x like this one:
What Are CoinGecko`s Goals?
With the goal of "increasing the crypto-participants' understanding of fundamental factors driving the market," CoinGeckos founders TM Lee and Bobby Ong wanted to find more transparent ways to track cryptocurrencies.
"We believe that 'market capitalization' is not a very big measure of the value of a cryptocurrency because it is heavily manipulated."
With thousands of cryptocurrencies on the market and new ones created every month, the CoinGecko Crew wants to help investors better understand the altcoins available by giving investors as many transparent and qualitative facts as possible.
A Transparent Analysis Of The Crypto Market
Rather than just tracking and measuring coins and tokens by market capitalization or exchanges by trading volume, CoinGecko also tracks other key factors. These key factors include a project's code progress and open-source code development, community growth, and other important events that affect its value. Bobby Ong explains:
"We started out as a crypto data aggregator for developers and community metrics. For developer statistics, we track Github, Bitbucket, and Gitlab. We count the number of commits, added/deleted lines, stars, forks, and pull requests. For community statistics, we track Twitter followers, Facebook likes, Reddit subscribers, new posts and comments. We believe that by measuring community and developer statistics, we get a 360-degree view of certain cryptocurrencies."
This makes CoinGecko a transparent tool for an in-depth analysis of the crypto market.
Problems Of Market Manipulation
Data and market manipulation is still an important issue in the industry. That`s why the trading volume itself is unreliable for the valuation of cryptocurrency exchanges.
When Bitwise Asset Management submitted its Bitcoin ETF proposal to the SEC last year, it included a study showing that 95% of trading volumes on cryptocurrency exchanges were counterfeit. Bitwise reached this conclusion after analyzing 81 exchanges over four days in March. Shocking statistics like these show that the actual market for Bitcoin and other cryptocurrencies is much smaller than it appears. Bobby Ong remarked:
"Fast forward to 2019, we came to a phase where cryptocurrency exchange data was heavily manipulated. In the regulated traditional markets, the volume reported by exchanges is very trustworthy, and a high volume indicates that there is more liquidity in the exchange. In unregulated crypto-markets, however, the reported exchange volumes are heavily manipulated."
CoinGecko Trust Score
When statistics such as these make the rounds, it is impossible to judge the liquidity of an exchange only based on its trading volume. You also have to look at other metrics. Now, this is where CoinGecko comes in. The company recently launched a feature it calls "Trust Score" to combat bogus trading volumes.
"Instead of sorting exchanges by 'total reported 24-hour trading volume', CoinGecko now sorts exchanges by Trust Score," says Bobby Ong.
"This is a combination of normalized exchange volume with web traffic and order book analysis. The change came into effect on May 13, 2019 on the CoinGecko Exchange Overview and Coin pages".
CoinGecko Cryptocurrency Reports
CoinGecko also produces monthly reports on the state of the cryptocurrency industry. These monthly reports provide additional insights into key issues of the whole cryptocurrency industry.
You can get your own copy of the cryptocurrency reports for free here on CoinGecko. In this way, you are able to kickstart your portfolio with the latest crypto market trends. 😎
CoinGecko Portfolio Manager
I have stored my crypto in different places. I use three different wallets, some coins are on exchanges like Binance for staking and forming and some are on platforms like BlockFi to earn passive income. It is hard to keep track of your portfolio when you are not storing all your coins and tokens in one place.
For this reason, I am using the CoinGecko Portfolio Manager. It is a very handy useful tool that provides you with an overview of your whole portfolio.
If you are interested in using CoinGecko`s portfolio manager, I recommend reading the post "Managing Your Portfolio with CoinGecko: A How-To Guide" written by Mynima. Mynima explains step by step how you can manage your portfolio with CoinGecko.
The CoinGecko Glossary For Crypto Terms
Another cool feature of the platform worth mentioning is the glossary for crypto terms. It contains important definitions for all major terminologies of the blockchain and cryptocurrency world.
If you don`t know what FUD, FOMO, or Sim Swapping means, you can look it up in the CoinGecko Glossary.
Collecting CoinGecko Candies
Finally, you can also collect Candies on the platform. You get more Candies for each consecutive day you collect and by maintaining your streak, you will get a big bonus on day number seven.
After you`ve signed up, you can log into your Coingecko account on their website or on their mobile app every day to collect those sweet candies.
These candies aren`t a cryptocurrency, they are more like bonus points. You can redeem these points that are called Candies for goodies. At the moment, they are providing redemption rewards like NFTs, a Coingecko branded T-Shirt, the CoinGecko DeFi book, or a CoinGecko Swag Pack.
I was lucky and fast enough to redeem my collected Candies for the CoinGecko Swag Pack. I have received it on the 24th of December and I am still super happy about it. 🥳
My Final Words
So, I hope I could provide you with some interesting and useful information about CoinGecko.
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Thank you guys as always for reading, liking, following, and tipping 👍 See you next time.