Guide: How to Use CoinBrain to Find Crypto Gems for Free

CoinBrain is a very useful crypto tool to discover and analyze Layer 2 tokens. In this guide, I will show you three free features from CoinBrain’s website that help you with finding and researching potential crypto gems.

Let’s go!

1. Filter Function

CoinBrain’s filter function is a powerful tool you can use to list up tokens by a number of criteria.

• For example, you can search what tokens there are on the recently hyped Arbitrum chain according to market cap, liquidity, and trades.
• The ‘Age’ filter is especially helpful for discovering new tokens that have a sudden increase in liquidity and volume.
• Want to find out projects that are currently hot? Set filters to only show projects with a low market cap which saw a high trading volume in the last 24h.
• Another important use of the filter function is to find out how many copycats there are of a particular token by filtering the name. For example, there are several hundred tokens containing the name “doge” just on the Ethereum blockchain alone.

Just by using this feature alone, you will be able to gather a lot of insights and ideas.

2. Token Analytics

After you have identified a handful of promising-looking tokens, your next step is to go to the individual page of each token. Here you will find several useful indicators that help you with further researching and analyzing tokens.

Let’s check them out.

Holders & Community Analytics

Holders vs. market cap is an important indicator to check in order to see if a token has a healthy amount of holders. Usually, a large number of holders indicates more general interest in the token. The larger the market cap of a token, the more holders it should have.

In this context, it’s also useful to know how many whales a token has. CoinBrain saves you the time to check on the block explorer of the specific chain. By scrolling down, you can see the change in holders over time as well as a visualization of what is the percentage of tokens that are controlled by large holders. In this case, the top 10 addresses holding 80% of the total amount of the tokens make the project look very centralized. In such cases, you should check out the project’s whitepaper, vesting schedule, etc. to find out why.

On the left chart, the sudden decrease in total holders and increase in large holders in February is something also worth looking into. Check recent news to get a better understanding of what could have caused these movements.

The number of community members also indicates the popularity of a project. In the screenshot below, the loss of Telegram members is worrying. However, during my research, I found that many projects experience the same pattern. This could indicate that Telegram groups are no longer an attractive way for people to engage and exchange information on projects in general.

Safety Metrics

The safety of a project’s smart contracts plays a vital role in whether the project can survive in the competitive Web3 environment in the long term. CoinBrain cooperates with Go+ to check and visualize a range of safety indicators. As a rule of thumb, you want to see as many green check marks here, as possible. While one conspicuous indicator alone does not have to be a cause for concern in most cases, you should continue to research what it is all about if there are several abnormalities. Check out my recent analysis of the safety indicators of 500 L2 tokens, to learn more about this.

Also, it’s important to do your own research when it comes to the safety of your potential investments. Always go to the project’s website to check if their code has been audited by other 3rd party security companies.

Another feature is useful in this context. With Coinbrain’s wallet-approval checker you can find out which protocols have access to your wallet. This is especially useful if you’ve invested in a project and subsequently given access to your wallet (especially dApps and DEXs).

Trading History

CoinBrain’s trading history filters are another powerful tool that allows you to get an overview of a token’s DEX trading history for the past few days. You can filter out the liquidity pools as well as traded token amount and value, giving you a deeper understanding of who dominated recent trades. For example, in conjunction with the filter function mentioned above, you can draw conclusions about what could be the reason for the fluctuations in trading volume that may occur (e.g. many whales buying or selling).

3. Multichart Tool

Another cool and free feature is CoinBrain’s multi-chart tool. It enables you to compare the candle charts of up to 16 tokens on the same screen. I like to use this feature to quickly identify deviations from the general market trend in the price of individual tokens.

Disclaimer: This article is for informational and educational purposes only. It should NOT be used as an investment or financial advice. Tokens were picked randomly to be used as examples.