Crypto trading is a profitable yet risky venture. What determines whether your venture in crypto becomes a success or a total flop lies in the trading tools you utilize. In this lesson, we will take you through some of the best crypto trading tools that are useful to beginners.
Crypto wallets
First of all, a crypto wallet is a first and most important tool you need to have. Your crypto wallet is your bank that securely stores your cryptocurrency. Having a reliable wallet implies that your crypto coins are safe from hackers. The funds in your crypto wallet can only be accessed with a private key. The only way you can lose your funds is when a hacker possesses your private keys or when you send tokens to the wrong address.
Therefore, having a secure wallet is essential for every beginner. Find a user-friendly and trusted wallet to store your funds before you begin trading. The crypto sphere offers a variety of wallets that you can choose from, varying in the level of security and functionality. PTP Wallet is a secure platform that enables you to send your cryptocurrency funds privately and securely.
Market Data
It is crucial for every trader, beginner, intermediate, or pro, to hunt for the most reliable and accurate information. Due to the uncertainty of market movements, consider gathering real-time information in regard to total coin supply, circulating supply, price action, amongst other technical and fundamental factors.
Having accurate information is a requisite for success in crypto trading. Collecting the market data requires you to integrate trading platforms, normalize data and calculate average prices. More so, you have to ensure that there are no errors while performing these tasks. As a beginner, you can analyze patterns of your desired cryptocurrency and study the 24-hour trading volume for comprehension of how the market performs. Some of the popular cryptocurrency market data tools for analysis include Coinmarketcap, Cryptocompare, OnchainFX, etc.
Charting Tool
A crypto charting tool is a tool that will enable you to visualize various market indicators and draw uptrend and downtrend lines to depict the condition of the market. Having such a tool will allow growing your technical analysis (TA) skills, a skill fundamental to keep you ahead of the game. A good technical analysis will forge a pro trader out of you in a short period.
One of the best and renowned crypto charting tools is TradingView that provides you with live trading charts and candlestick patterns. Thus, having such a trading tool in your corner provides you with the best indicators that you could ever ask for.
Portfolio Tracker and Management
Do you want to trade in multiple cryptocurrencies? You have to love crypto portfolio trackers. They are arguably one of the best and the most utilized trading tool. Portfolio trackers help you keep track of your diversified portfolio. Thus, it keeps a record of all your trading activities in a way that you can quickly check for any changes in your portfolio.
While analyzing your moves and 24-hour changes, this tool also simplifies comprehension of risk management. The market is saturated with crypto portfolio trackers, but choosing a reliable and trustworthy one is essential. Examples of portfolio trackers include Blockfolio, CoinStats, Cointracking, Blox, etc.
Trading Bot
These are basically software that enables you to automate your crypto trading by setting when to enter a market and when to exit. Trading Bots have become man’s best trading companion for both beginners and pros in leveraging the crypto market. What the trading bot does is execute trades according to your trading strategy on a 24-hour market on your behalf. Sounds cool, doesn’t it?
Since trading bots automate your trading process, you are only left with feeding them the right strategy. A reliable trading bot and the right strategy guarantees to rake profits on your behalf. Moreover, if you doubt that your emotions may get in your way of reaping great returns from crypto trading, then this tool is definitely for you. Gekko, Haasonline, and Cryptohopper could be where you start.
Tax Tools
Soon you will realize the enormous amount of data that you are required to track. This is where the crypto trading game becomes no fun at all – tax calculations, auditing, name them. It becomes even more hectic than tracking all your transactions if you had no trading tool. The headache of the taxing period exists in all investment markets. And the laws make it tough for auditing tax payments for the crypto sphere.
So what will you do?
Cryptocurrency tax tools come in handy. The tax tools aids in organizing all your trades, calculating the amount you have to pay, and generating your tax form. Even so, they help in calculating all your gains and losses in individual transactions.
News Sites and Aggregator
The trend and coin updates are the determining factors of a coin’s price. Thus, the market demands vigilant traders. To stay ahead, trusted news sites can help you harvest vital information. However, hundreds of websites emerge every day, with thousands and thousands of articles. Moreover, social influencers contribute to misinformation about the market, which is misleading.
To filter the necessary information from a sea of biased opinions, it is important to select a specific source that provides the latest market information. Furthermore, the source should also aggregate all the data into a single view to enable you to have fast reliable information to make a profit from the crypto market.
Bottom line
From the list above, which one is your favorite tool? The best strategy for determining the tool that works for you is having hands-on experience. However, these trading tools keep you ahead of other investors. Once you have handpicked the tool that works for you, your investment strategies will be vastly improved.
