Is Chainalysis any good? Does it work also to get trading insights?

 Is Chainalysis any good?

 

A question that we get pretty often these days is whether Chainalysis works also to get trading insights. The answer is of course yes!

 The customers can choose to use the software both ways, and it might be very interesting in some cases to look at the Chainalysis reports to find out the history behind an address that you want to accept coins from, or to see which addresses are used by people from your country (or not).

 There can be many other reasons why you would want to get more insight about addresses that have been involved in transactions with your own address, so this feature can be quite useful as well!

 

Why do you need Chainalysis for crypto trading?

If you’re looking for a way to buy, sell or store cryptocurrency, you should consider using a wallet with multi-sig capability. A multisig wallet will allow you to lock in your holdings of Bitcoin and Ethereum by requiring more than one keystroke on your machine before sending cryptocurrency from your wallet.

 If an intruder somehow gains access to your computer, he won’t be able to steal anything unless he has both your keys (from each address) AND accesses a second computer with separate keys.

 That means that even if someone steals or guesses one of your private keys, they still can’t access any funds stored at that address until they gain access through another device.

 

What does the interface look like?

The interface is simple and well-designed. It’s an easy tool to use; you simply enter an address, confirm that you have entered the correct one, then press a button

. The results appear almost instantly: a table of recent transactions for that address, along with some analysis about what kind of currency was involved in each transaction (Bitcoin, Bitcoin Cash, or Ether) and at what price.

 You can use your mouse to click on individual entries, which causes more information (e.g., timestamp and amount transacted) to appear in a new window next to your initial address entry. It all feels very intuitive once you know how it works. What's its purpose?

 Blockchain forensics company Chainalysis offers software tools designed to help law enforcement track down criminals who are using cryptocurrencies like Bitcoin to launder money. Its software lets users trace transactions through various wallets and exchanges, so they can see where the money came from before it ended up in their account.

For example, if someone used cryptocurrency from a known criminal organization (or dark website), that person could be investigated as a possible accomplice.

 

Where does the data come from?

Chainalysis is most known for tracking and analyzing bitcoin transactions, but you can use it for other blockchains like Ethereum. In order to use their software, you'll need someone on your team who understands how their APIs work or be able to code.

 Additionally, they have a few enterprise solutions that are intended for professional accountants and law enforcement; however, these enterprise solutions aren't available outside of Switzerland (where Chainalysis is headquartered).

 So yes, their software works well if you're trying to analyze an individual person's transactions; however, it won't necessarily help you track down information about overall market trends.

 

How accurate is this tool when it comes to finding crypto accounts and wallets?

Whenever someone transfers bitcoin, that transaction is added to new blocks of transactions recorded in sequence, forming a chain of blocks.

 Users who hold bitcoin—which is essentially digital money—can see all past and future transactions on their personal wallets or via special computer programs known as miners. Blockchain helps trace funds from one account or wallet to another.

 So if you want an accurate chain of transactions, you need an accurate chain of blocks with correct and reliable information about each transaction.

 

Which cryptos are supported by Chainalysis right now?

Of all the services out there for discovering blockchain data, we find Chainalysis has a particular advantage in that it can track crypto transactions at a granular level (i.e., wallet-level information). This helps with tax compliance and law enforcement, as well as marketing research.

 For example, an apparel retailer might want to know which pairs of jeans are most popular with which pairs of shoes and vice versa.

We hope they'll continue to add support for more coins going forward. They've recently added some data on Bitcoin Cash and Zcash, but both are still missing price data (e.g., the average price paid). The upside is that we were able to look up a specific transaction through their API with no problem!

 

Should I trust the Chainalysis tool or not?

I have just started learning forex and I am still not very confident that I will be able to make money in trading, but I like one tool. This tool is said to be Chainalysis. But in my opinion, a scammer could easily change a referral link for his own account and earn some extra cash by scamming beginners.

 So does anyone here know if those reviews about that tool are true or just another scheme? If so which other tools would you recommend me to try instead of Chainalysis? Thank you all in advance!

I used Chain analysis today. It didn't show my open trades at Mt4 brokers (I tried 3 of them) but it showed a loss on two platforms, namely trade and Alpari.

 I then realized these were holding my funds with zero leverage... That's when I knew that analysis was useless since it does not even show every trade done at mtgox (mtgox being zero leverage). Am I right or wrong?

But anyway, thank you once again, guys! Yes, the system behind bitcointalk works really great! You always manage to help newbies like me who don't want to lose their own hard-earned cash trying stupid stuff without knowing exactly what they do !!! Thanx mate!!!

 

Conclusion

Having used several different blockchain analysis companies (AML, Sanctions, and Criminal), I’ve found that none of them match up to Chainalysis. That is because they are not looking at transactions as much as they are focusing on people’s identities and relationships. They have a well-funded team that offers plenty of services – AML, bitcoin mining analysis, compliance, etc.

 Their platform seems very solid so far – I can easily see them becoming a top provider in due time if their marketing strategy works out well for them. The main reason for me is their open source compliance solution but besides that, their other offerings seem quite useful too!