The cryptocurrency domain is growing extensively and so is the number of followers it has. Since 2020, the digital currency space is booming, and therefore more and more people are looking forward to investing in it. However, without a comprehensive knowledge of the subject, it would lead to a huge gamble on your valuable possessions. The first thing you should know about before investing in the domain is the list of essential crypto trading tools.
These tools help you in understanding the prevalent market conditions. Also, in the absence of the proper tools, you might not be able to analyze and make the correct approach regarding trading, investment, exchange platforms, or tracking. Therefore, this article is aimed at providing you with the trading tools to consider before you start investing. A brief guide on how to use them will also be provided.
10 Important Crypto Trading Tools
Crypto trading tools enhance the overall investment experience by facilitating crucial decision-making in the digital currency space. The best of these tools are mentioned below.
The most widely trusted and used crypto price tracking website, CoinMarketCap, is a prominent constituent of the crypto bucket list one should have. The website provides real-time price upgrades of all the existent cryptocurrencies in the world. It also enables you to know the basics of each blockchain network or the coin associated with it through the detailed descriptions it features. The historical price data and live price action charts can be used in the fundamental analysis of crypto.
Further, it shows the 24-hour trade volume for each coin by which one can ascertain whether the token’s demand has increased or decreased. The specific time period charts that include data for the preceding 7 days, 1 month, and ever since the time the coin launched. This data can be vital in determining the crypto’s overall performance. Moreover, any cases of misleading information from the site have still not been reported. Therefore, whether an expert or a beginner, you definitely need CoinMarketCap.
You can also acquire information on where the particular crypto is listed and can be traded freely. The price actions of that coin on various platforms can be found, which would aid you in crypto day trading strategies. Further, you can participate in community estimations to know what other traders are thinking of the future price actions.
Crypto Exchange Platforms
To deal in crypto investments you need to choose a crypto exchange platform that suits your preferences and needs. There are several such exchanges available, however, not every one of them is genuine and trustworthy. Therefore, it is recommended to start with the major crypto trading networks that are reliable. Some of them are discussed briefly below.
- Binance: To maximize your crypto transactions and lower your transaction fees, definitely try this exchange platform. It has over 100 crypto tokens listed making it one of the major crypto exchanges existing.
- Coinbase: This is also a widely known crypto exchange platform that you can try. However, it hosts a lesser number of crypto assets compared to Binance. Moreover, it has been facing several technical issues and glitches lately that might hinder your trading experience.
- Crypto.com: If you are someone who does not want to part your earnings with the transaction fee charged by crypto platforms then Crypto.com is the best crypto exchange for you. It charges a minimal fee ranging from 0.04% to 0.1%, which is much lesser than other exchanges.
After acquiring crypto it is essential to store them in a safe and secure place. Therefore, you need online or offline crypto wallets to do the task. Most crypto exchange platforms like Binance and Coinbase have their own digital wallet services. However, the safer option is to stick with offline wallets. Some of the best hot and cold hardware wallets are mentioned below.
- Hot hardware wallets like Mycelium, Electrum, and Exodus enable various benefits and better user control settings for enhanced administration of your crypto funds.
- Cold offline wallets like Trezor One and Ledger Nano S enable the maximum amount of privacy and protection to the user’s address and crypto investments.
Crypto Portfolio Trackers
Portfolio trackers of cryptocurrency are necessary to keep an eye on the overall value of your digital assets. The most important point to consider here is the efficiency of these trackers since any glitch or fault might alter the decision-making process. Therefore, we have listed some of the best crypto portfolio trackers to count on.
- Shrimpy: It is a renowned portfolio tracker to maintain your crypto assets. It enables you to have a record of several cryptocurrencies in the world and also supports over 30 crypto exchange platforms and digital wallets.
- CoinStats: This is also a widely known tracker for your crypto investments that allows higher control over these digital assets. In addition, it provides daily crypto updates and news, compatibility between two or more exchange platforms, and detailed analytics. All these features are available both on mobile phones and desktops.
- CoinGecko: It is one of the best choices to make for the amalgamation of crypto investment data across a number of exchanges and online wallets. It enables one to customize their portfolios through DeFi tokens and liquidity pools. Moreover, most of its benefits can be enjoyed at zero cost.
Crypto Rebalancing Tools
It is essential to rebalance your crypto portfolio for better-earning potential. This is an act that you have to perform often as it is what maintaining a cryptocurrency portfolio demands. Therefore, the rebalancing tools are what you require since they will conduct the operations in an automated manner reducing hassle at your end. Some of the best tools for crypto rebalancing are:
- Shrimpy: Apart from offering crypto portfolio tracking facilities, Shrimpy also enables one to rebalance it through internal portfolio management services. This tool can serve a 2-in-1 purpose and is definitely recommended to try at least once before thinking otherwise.
- 3Commas: If not satisfied with shrimpy, you might try 3Commas, which also provides crypto portfolio rebalancing options.
Though the crypto framework has yet not been regulated in the majority of countries, it is not that there are no taxes levied. Adhering to crypto taxation rules is necessary else you might end up in prison. Therefore, there are some crypto tax tools that enable you to perform the aforementioned task at utmost ease. Two such tools are listed below.
- Accounting.com enables one to transfer their historical transaction data to one single place making it easier for them to determine their crypto tax liability.
- Token tax platform allows the use of their taxing services at feasible rates thus reducing the economic burden on the investor.
As an investor in the crypto space, who would not want to maximize their earnings? For this, one can try their luck with crypto day trading. The most commonly used strategy for it is High-frequency trading (HFT) which enables one to profit from the small price changes that occur in fractions of a second. To perform this, you need trading bots as it is impossible for a human to take note of such small changes in such a short period of time. Therefore, the automated technology of crypto trading bots should be incorporated. The best crypto trading bot services are provided by Cryptohopper, 3Commas, and Tradesanta.
The various benefits that such cryptocurrency trading bot software services enable are listed below.
- Advanced candle patterns and crypto technical indicators.
- 24/7 crypto trading
- Trailing Stop-Buy
- Trailing Stop-Loss
- Advanced in-built trading strategies
A crypto calendar platform serves as a means of acquiring information about what is happening in the crypto space around the world. It also displays the schedule of upcoming events that include crypto airdrops, initial coin offerings, and crypto launches. This way, you would never miss out on potential opportunities to invest in crypto assets and make profits from them. Some of the best crypto calendar service platforms are listed below.
- ICO Calendar
- Coin Calendar
- Wiser ICO
- Cryptocurrency coin event
It is recommended to check some of these platforms out if you want to be notified of every minor or major change in the crypto domain. These provide different features and services so choose the one that best suits your preferences.
Crypto block explorer applications are platforms that enable one to view the data on transactions that have been undertaken on the network. It also allows the users to trace these transactions by searching their wallet addresses. This feature works on the principles of blockchain, the distributed ledger, that hold accounts of all the crypto trading activities undertaken.
It is advised to use this tool as it will help you in identifying malpractices or frauds, if any, by tracking and tracing those transactions. However, it would be fairly difficult in the case of privacy tokens such as Monero (XMR). The best block explorers to consider are Etherscan and Blockchain.com.
Crypto Mining Tools
Mining is one of the most important and complex operations undertaken in the digital currency space. It is defined as the process of active involvement in transaction validation and verification and liberating blocks. As a result, one can mine a new coin of any existing cryptocurrency.
There is a pool of such mining technologies available in the digital world stretching from manual to completely automated ones. However, it is necessary to do rigorous research before trusting any crypto mining software. This is because a lot of them might be developed to scam you just to acquire information about your crypto holdings and wipe them off. Therefore, conduct your own research and choose the software that you feel is the best and meets your ends.
Winding It Up
Crypto investments can be an even riskier gamble if not undertaken cautiously. The virtual currency market is already volatile meaning that your assets might not stay safe after a period of time. Therefore, it is advised to use the crypto trading tools listed above in order to minimize the dangers of losing crypto possessions. In addition, these tools will also help you in maximizing the earnings and profits you make.
The various tools like CoinmarketCap, crypto portfolio trackers, exchanges, wallets, and trading bots, are a must-have from the above-mentioned list. Other tools can be checked out later since they are the ones you might need later while exploring the cryptocurrency space further.