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Centralized exchanges are, arguably, one of the most challenging components to analyze in the crypto-asset markets. While the behavior of many actors in the crypto space is transparently recorded in distributed ledgers, centralized exchanges still operate largely off-chain only publishing subset of the activity to the corresponding blockchains. Without a doubt, centralized exchanges introduce a level of opacity that challenges even the most sophisticated analytic techniques. And yet, the analysis of the behavior of centralized exchanges can yield many interesting benefits for crypto investors and traders. Imagine that you are able to effectively track large crypto transfers between exchanges that can anticipate a large position on a specific crypto asset. All that, however, requires understanding the underlying patterns in centralized exchanges.

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