Exchange Inflow & Outflow: Meaning & Explanation.
In this 🧵, you will learn.
-What is inflow & outflow.
-How you can interpret it easily.
-Tools to check out inflow and outflow.
-Why investors transfer coins IN and OUT of exchanges.
Stay open as you read through.
1/🧵
Exchange Inflow is the amt of coin deposited into an exchange wallet.
Exchange Outflow is the amt of coin withdrawal from an exchange Wallet.
Assume the coin is BTC and the exchange is binance.
.Inflow = BTC sent TO Binance.
.Outlow = BTC sent FROM Binance.
2/🧵
Inflow provides surplus BTC for trade, may lead to decrease in price.
Outflow provides less (scarce) BTC for trade, may lead to increase in price.
Exchange Outflow is the difference b/w BTC flowing into and out of an exchange.
Netflow = Inflow - Outflow.
3/🧵
A +ive Netflow means more BTC deposited into exchange, a bearish sign.
A -ive Netflow means more BTC withdrawal from exchange, a bullish sign.
At this point, your LIKE and RETWEET is needed 🫂.
4/🧵
Why do investors send coin to(inflow) and from(outflow) exchanges?
This is a question we must ask ourselves.
But then, some reasons are given below.
In the case of an Inflow.
5/🧵
1. They send to spot exchanges to SELL. Investors in need of fiats or stables.
Effect is bearish.
2. To trade in derivative market. Effect is rise in volatility risk.
3. To use services in the exchange such as, staking, airdrop, IEO. Effect on the market, neutral.
6/🧵
For an outflow.
1. To HODL.
Bought from spot, sent to wallet, cold or hold. Effect is bullish.
2. Moving coins that are no longer needed for derivative trades.
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Thank you for your LIKE and RETWEET.
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7/🧵
Tools you need.
1. @cryptoquant_com gives a more detail data than just a big inflow alert. s/o to the team for this useful resource in this 🧵.
2. @TheBlock__. A news platform, also measures BTC capital inflow and crypto fiat inflow in currencies such as USD & USDT.
8/🧵
3. @whale_alert An inflow outflow crypto balance tracker, with live tracking tech. This is use large whale transaction on diff blockchain.
9/🧵
4.Check manually. Locate an exchange wallet & analyze the balance of the wallet.
To find exchange wallet, withdraw crypto from the exchange and copy the address that sent it.
A depleted reserves means withdrawing, outflow.
Thank you for reading through. One thing left.
10/10
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