Which is Better: CoinGecko or CoinMarketCap?
CoinGecko and CoinMarketCap are some of the most popular tools in the cryptocurrency investment world. But what sets them apart from other well-known tools? And what are the best practices for using them?
We have been using both CoinGecko and CoinMarketCap for years and we are here to give you some advice. So, keep reading as we dive into the tips you need to know before using these investment tools.
What is CoinGecko?
CoinGecko is an independent data aggregator, which is a fancy word for saying they synthesize and present data to readers. They focus mostly on coin prices, though they also offer info on NFTs and news in the cryptocurrency world.
Users can use CoinGecko to monitor the prices of their favorite cryptocurrencies. They can also make an account, where they can create watchlists and even execute fake transactions. There is also an option to set up alerts so a trader can be notified when the price of their favorite token drops. Overall, GoinGecko is an excellent learning tool, especially for newer low-level investors.
What is CoinMarketCap?
CoinMarketCap is also a data aggregator, similar to CoinGecko, however it was designed to specifically focus on, and rank, cryptocurrencies by market capacity. CoinMarketCap synthesizes prices from cryptocurrency markets around the world and presents them to users in a way that is easy to follow. Like CoinGecko, they also offer some services for tracking cryptocurrency prices.
CoinMarketCap was purchased by Forbes in 2020, and recently, we have begun to notice the website being inundated with AI information. It seems the data aggregation is just not for cryptocurrency prices, but also the general crypto info. As a result, the website has become increasingly inaccurate over the years for crypto details. However, if you are just looking for an average price, it still hits the mark.
Which is Better: CoinMarketCap or CoinGecko?
As individuals who use both platforms, which is better will depend on what you are trying to do. Those looking for a platform to balance their portfolio and to learn about crypto long term should utilize CoinGecko. Those who are just looking to check the average price, or the market capacity of a cryptocurrency, CoinMarketCap will suffice.
Both platforms summarize data in a way that is visually appealing and not too difficult to understand. While we do trust the price data featured on CoinMarketCap, we do not trust the additional information, as we have found it to be very outdated and inaccurate—something we blame AI for. In comparison, CoinGecko seems to have more up-to-date information, though we cannot exclude the fact that they may also utilize AI.
Regardless, both of these are simply tools that should be used to help you on your investment journey. We recommend using a mix of both for best results. Just make sure you aren’t relying on them too heavily because, after all, these platforms are still a business and are looking to make a profit.
Tips for Using Cryptocurrency Monitoring Tools
The best cryptocurrency monitoring tool will vary based on your education level and the type of trading you engage in. Below are some tips for helping you choose the write tool but know that the results may vary for everyone.
1. Use a Tool Integrated With the Exchange You Use
One of the easiest ways to choose a monitoring tool is to pick the one you are already presented with on the platform you use for trading crypto. This way, there is no switching back and forth between websites, and you can set up auto trades. Coinbase and Binance are examples that offer this option.
2. Choose the Easiest One
Not all platforms offer the same capabilities as CoinGecko or CoinMarketCap, so if your trading platform doesn’t offer these, we recommend choosing whatever tool is easiest for you. Maybe it’s the one that also has a desktop app, or the one that comes in your native language (if it’s not English), the choice is yours.
3. Check Reviews
Just like trading platforms, some crypto investing tools have reviews (especially the ones you pay to use). If you are having trouble selecting the right tool for you, reading reviews can help you get previous customer insight that could help sway your decision.
4. Check Capabilities
What capabilities do you need in a market monitoring app? List these out and start eliminating any apps or platforms that don’t meet your needs. If you have a lot of extensive needs, it might help to split them between “musts” and “would be nice.”
Then rank your potential apps by how many “musts” they meet and choose the highest ranked one.
5. Choose the Cheapest
If you still find yourself between two market monitoring tools, we recommend going with the one that is the least expensive—especially if all other offerings are the same. Because most of these tools are only for monitoring purposes (and they won’t directly help you earn money), you will want to spend as little as possible on the base services you need. This way you can net the most profit in your early trading days.
Other Crypto Investing Tools to Consider
We know that CoinMarketCap and CoinGecko aren’t for all traders. Below is a list of alternative tools you can consider which may be a better fir for you.
· Kubera
· Kraken
· Coinbase
· CoinDesk
· Binance
· TokenMetrics
And this is just the tip of the iceberg, so don’t be afraid to look at others not on this list. Just be careful never to enter any wallet details into these apps until you are sure they aren’t scams (unfortunately, scammers are in this space too!)
Overall, CoinMarketCap and CoinGecko are both useful tools when it comes to monitoring cryptocurrency markets and making decisions. Just keep in mind that they are only tools and that you should do your own due diligence before purchasing any token. Additionally, these aren’t the only tools out there, so don’t be afraid to consider other ones as well!
