With the increased adoption of cryptocurrency across different sectors, the number of participants keeps growing, and attention towards the space keeps spiking. As a result, individuals and institutions seek ways to get involved in the crypto space. However, the most active participants are traders. And they are the major market movers.
Conversely, traders are looking for essential tools they can leverage while executing trade orders in the crypto market. This is because they want to reduce the risk of losing their capital and increase their profits. This guide presents you with information on the various crypto trading tools you need as a trader.
Definition of Crypto Tools
You may think you are at a disadvantage when trading in the cryptocurrency market and making profits. But you don’t know that some other traders are leveraging some kinds of tools to make wise trading and investment decisions. These two are pointers to making informed decisions with risks of losing your capital being little or at zero.
Crypto tools are applications or websites created to help traders enhance their trading strategies and efficiently manage their crypto portfolios. These tools are designed to enhance your crypto experience regardless of why you are engaging the crypto industry, be it crypto accounting, crypto tracking, crypto trading, or other essential purposes.
These tools are either free tools or sold for a premium price. However, the price is reasonable, and an average John can afford it. There are different categories of crypto tools. Each of these tools has its competitive advantage. Some tools can help you make more cashback for each transaction or amplify your portfolio. The ultimate goal for having enough crypto tools is to make more money from the crypto market.
6 Categories of Crypto Tools
When you think of crypto tools, understand that there are different categories wherein different tools can be fixed. Having this knowledge will help you maximize the benefits attached to each tool. As a result, you will make more profits as you decide your stakes while leveraging real-time information from those tools.
The six (6) categories of crypto tools investors and traders use are:
- Crypto Wallets
- Crypto Research Tools
- Crypto Tracking and Portfolio Management Tools
- Crypto Trading Bots
- Crypto Tax Software
- Crypto Mining Software
You can liken crypto wallets to a digital bank account. A crypto wallet is a digital wallet that allows you to save and secure your cryptocurrency with private keys. These wallets make it possible for you to send and receive digital currencies. And they are of various forms. They can be hardware wallet that looks precisely like USB drive, mobile apps, and website or browser extension.
Ordinarily, cryptos are not stored in the wallet. They are kept in a blockchain wallet, but the private keys attached to your wallets give you access to your digital assets. Those keys are proof that you own the digital assets.
Crypto Research Tools
Regardless of your crypto trading level, you must leverage the benefits attached to crypto research tools. Likewise, maximize the benefits associated with using crypto charting tools. These tools help you create efficient trading strategies that can bring you more profits in the crypto market. Before using one, compare its exchange configuration, features, and user interface with others.
Crypto Tracking and Portfolio Management Tools
One significant advantage some crypto traders have over others is their ability to manage risks efficiently. However, this process results from the software used in tracking transactions taking place in one’s portfolio at once. That gives you an insight into your movement in the market. With that, you can analyze your participation and better comprehend how you can establish risk management.
Crypto Trading Bots
Do you want to make more profits without getting entangled with emotions? You should consider using trading bots. Crypto trading bots are computer programs used to create buy and sell orders. These bots execute these transactions without involving human emotions.
Their decisions are from market trends and data obtained from the market. This reduces the risk of losing one’s capital investment and increases the chances of making more profits. With trading bots, you can earn passive income via crypto while away from the trading platforms.
Crypto Tax Software
When you think about the tax implications of trading cryptocurrency, you would agree that it can be difficult and tricky to track all your transactions and accurately record them to fill a good tax standing. But with the use of crypto tax software, you can track your transactions and become more tax compliant. With that, you will be able to fulfill your tax duties.
Most significantly, some crypto tax software generates tax forms based on the Internal Revenue Service (IRS) requirements. However, you may not need this tool if you trade a few times. But a full-time trader will need it.
Crypto Mining Software
Crypto mining software is a computer program designed majorly for mining cryptocurrencies. These programs can be executed on one’s computer or run on specialized mining rigs created to mine digital assets.
6 Best Crypto Trading Tools for Investors and Traders
Since you don’t want to go to a gunfight with a knife, now is the time to know the tools you should have while charging toward crypto warfare. As mentioned earlier, they give you a competitive edge ahead of other traders not using such tools.
If you want to trade across different exchanges but do not want to undergo the stress of the Know Your Customer compliance process, Atani is the right platform for you to leverage. This crypto platform is created with an integration of top crypto exchanges. And with this unique feature, you can across more than 20 crypto exchanges.
As a result of this feature, you can have access to price comparison and be presented with the opportunity to choose the best price for you while making a crypto trade. Aside from conducting in-depth technical analysis across over 1000 cryptocurrencies, there is an option to download tax reports when you want to make your tax filings. Ultimately, you can remain anonymous while trading.
Have you ever made a mistake that wants to make you pull out all your hair? That’s how you might feel when you send cryptocurrencies to the wrong address. Most times, users don’t get to retrieve such crypto assets. You can only accept it as a cost for your mistake. But what if you can send cryptos to Ethereum wallet without the fear of sending it to the wrong address?
That’s what ethbox presents to the crypto market. You can successfully send Ether to others on the Ethereum blockchain without the fear of losing it to the wrong address. This platform acts as a digital escrow with embedded smart contracts that protect you from losing your Ether to the wrong address. Currently, work is ongoing to integrate this feature across other networks too.
While NewsCrypto comes with different perks of leverages for crypto traders, crypto traders across different levels can use it. Part of its features is the section filled with resources to learn about the crypto space and the news section filled with real-time events happening in the crypto space. Likewise, the technical analysis tool gives a clear picture of the market performance.
Another feature available on this platform is the embedded demo account. This account allows you to test-run your strategies at no risk to determine their suitability in a real-world scenario. Additionally, there is a section wherein you can engage traders like you and share ideas with other investors. You can liken this to a community.
With OpenOcean, users have quality access to a deep liquidity pool across centralized and decentralized exchanges. As a result of their smart algorithm programs, users have access to price comparisons and discover what they tag best prices. Traders have the liberty to customize their trading interface. With this kind of feature, they will engineer the platform to suit their trading strategies.
If you are a beginner and want to start trading cryptocurrencies from the standpoint of minimal risk, you can begin with StackedInvest. The professionals created a platform that allows you to choose from portfolios and strategies built on the platform. This feature is a brainchild of experienced traders and hedge fund managers. However, these portfolios and strategies and optimized regularly.
If you don’t want the IRS to come after you and make you feel lost due to your crypto trades, CryptoTaxCalculator should be part of your daily tools. This tool helps you solve your tax problems associated with cryptocurrency trades. The interface is easy to navigate and supports over 100 exchange platforms. Meanwhile, the list keeps growing, and integration keeps evolving.
If you are serious about making enough profits from the crypto market, it is high time you started using crypto trading tools available at your disposal. These tools will not only help you obtain enough profits from the market. They will also make you more informed when trading cryptocurrencies due to the different unique features available to you as a trader.