Tracking the Blockchain: Understanding Bitcoin Tracking and Analysis Tools

Blockchain is a next-generation technology wherein cryptographic blocks are generated by miners when they solve complex mathematical problems. Several applications of blockchain technology have started making an impact on the world. One such application of blockchain technology is the currencies generated on a blockchain’s backbone.

There are several such currencies that have become highly prized assets in the world. One of the most common blockchain-based currencies, or crypto currency as they are popularly known, is Bitcoin. Hence it is critical to track and analyzes cryptos like Bitcoins to avert fraud and to ensure compliance with norms. Fortunately, there are Bitcoin Analysis Tool that can help people by easily tracking Bitcoins.

What Are Bitcoin Tracking Tools, And How Are They Helpful

Analysis And Tracking Tools Are Helpful For Fraud Prevention

The biggest advantage of a crypto like Bitcoin is that it is decentralized. This means that each transaction on a blockchain is not monitored by a government agency. Rather it is verified by the peers in a Bitcoin network.

Despite the peer-based transaction verification mechanism, several people have been robbed of their assets on the blockchain. And in order to prevent such hackers and their malicious activities, crypto businesses, who are also known as virtual asset providers or VAPs, have time and again taken the help of tracking and analysis tools.

Here are some of the ways in which tracking and analysis tools can help in fraud prevention.

  • Fraud Prevention In Bridge Exchanges:

There are several points of vulnerability on a blockchain-based transaction network where a hacker can exploit the system to deprive a legitimate owner of his assets.

One such vulnerable point is a bridge exchange where conversion takes place from one type of crypto to another. For instance, when ethereum is being converted to an equivalent amount of another currency, say bitcoin, then the hacker can steal the asset while the conversion is taking place.

Tracking and analysis tools provide for transaction tracking. This means that all the transactions that take place on the blockchain can be tracked. So if there has been an illegitimate change of ownership at some point, the investigation agencies can spot the point of vulnerability and trace the miscreant.


  • Fraud Prevention In Crypto Exchanges:

Another point of vulnerability in the blockchain-based crypto network is crypto exchanges. A crypto exchange, much like a stock exchange, has several different types of currencies.

A trader buys and sells these currencies based on market valuations of the different currencies. However, since the exchange hosts a lot of cryptos, hacking into an exchange to manipulate the transactions or stealing cryptos from an exchange can cause havoc in the world of finance.

Hence, the owners of crypto exchanges as well as government agencies, use tracking and analysis tools to protect the exchanges as well as trace miscreants. The tracking tool helps monitor risks.

So if there is a sudden flurry of transactions that looks spurious, an alert can be sent to the concerned agencies. Likewise, the tools also help analyze the data related to the exchange. And this free exchange of data helps find out loopholes in the system and also spot wrongdoings.

Analysis Tools Helps Brings Transparency Into The Blockchain Network


Cryptos are not regular like regular legal tender. In fact, most countries of the world and their federal banks have not given legal status to cryptos.

Moreover, most country leaders are aware and worried about the potential disruptions that these assets can cause to the global economy. So many government agencies make use of tracking and analysis tools to bring transparency into blockchain networks.

Crypto-based transactions are in dire need of transparency because the lack of regulatory oversight makes them a potent tool for the transfer of black money.

Moreover, the status of cryptos varies across jurisdictions. Some countries consider them assets, and others consider them currencies. Some countries like Canada treat crypto exchanges at par with barter exchanges. Hence there is a lot of room for manipulation and concealment of the true source of income when it comes to blockchain-based currencies like Bitcoin and Ethereum.

Hence, there are tools like those built by the Blockchain Intelligence Group, Chainanalysis, Coinpath etc., that help bring much needed transparency to the world of cryptos.

Some Common Crypto Tracking Tools And How They Work


Address Watch By The Blockchain Intelligence Group

This is an automated service that gives alerts for specific cryptocurrency addresses. They are useful from the point of view of investors as they can track whales and trading trends in real time. And make prudent investment decisions so that they can register a profit.

Entity Explorer By The Blockchain Intelligence Group

The Entity Explorer allows you to analyze the risk profile of a virtual asset service provider (VASP). Eighteen factors are analyzed to come to a conclusion about the risk levels of a particular VASP.



It is a tool that allows for tracking of transactions that happen over the blockchain network. It further allows easy visualization of complex data, and it also provides compliance solutions to regulatory agencies of the governments.


It collects data from various blockchain networks. For market-related information, it works with several spot exchanges, derivative exchanges etc.

Today, it serves more than a million people across the world. Apart from providing valuable data from crypto networks and markets, it also provides intelligence on bearish and bullish tendencies in the market.


At present, the value of a Bitcoin stands at a whopping twenty two thousand US dollars. Cryptos like Bitcoin, and Ethereum have become the preferred mode of investment for the wealthy people of the world. Cryptos have also garnered the attention of miscreants and government agencies, given the rising value and potential for carrying out illicit transactions.

Hence, tools that help track and analyze cryptos are fundamentally crucial for all the players in the crypto market, be it government agencies, business houses, virtual asset service providers or individuals who wish to purchase such currencies.

Miljan Radovanovic
Miljan Radovanovic

As a content editor at, I play a crucial role in refining, controlling, and publishing compelling blog content that aligns with our strategic objectives and enhances our online presence. Outside of my professional life, I am passionate about tennis and have a rich history in football, which have both instilled in me the values of discipline, strategy, and teamwork.