Essential Tools for Trading Cryptocurrencies
The cryptocurrency market has gained significant success worldwide. Major investors now view it as a legitimate financial asset and are investing substantial capital. To help you trade cryptocurrencies, we have selected the best crypto tools.
Essential Tools for Investing in Crypto
In 2017, a massive influx of new investors and crypto traders led to a boom in Bitcoin and altcoins. This trend drove up values, allowing users to make astronomical profits quickly. However, to invest in cryptocurrency safely and generate profits, you need the right tools.
The first essential tool for investing in crypto is undoubtedly the exchange platform. Also called an “exchange,” it refers to a website, a marketplace, or a trading venue where users can trade virtual currencies with one another. Depending on the chosen platform, it’s also possible to convert cryptocurrencies into fiat money or exchange them for the national currency issued by the central bank.
The second essential tool is the trading bot. Today, this automated trading tool is incredibly popular. It trades automatically on behalf of users and helps beginners analyze the market quickly and effectively. The analysis is based on pre-set algorithms. Users just need to follow the recommendations to initiate trades and make profits.
Users who aim to become skilled traders shouldn’t overlook financial data. Tools that provide financial data make tasks easier. There are also charting tools that help users visualize key indicators and historical price movements. Even though different software tools may have varying features, they can be used for all types of cryptocurrencies and other markets.
The last must-have tool for investing in crypto is a calendar. Many dates and events can influence the value of each cryptocurrency. By using a specialized calendar, you can gather all the important information you need.
Making a Living out of Cryptocurrency
Is it possible to make a living with cryptocurrencies? That’s a common question from beginners and those curious about exploring this path. The answer is yes. To succeed, you need to choose a trading platform. There are several platforms available, and while they offer similar features, each has its own unique aspects. Before committing, you should carefully consider these differences.
If you want to make a living from crypto, choose the right platform. A reliable platform complies with regulations and will require your personal information and a photo ID before allowing you to trade. The verification process can take anywhere from a few minutes to several days, depending on the marketplace.
To increase your chances of making profits, measure the trading volume of the market. According to experts, trading volume and the number of cryptocurrencies offered are closely linked. A platform with high trading volume typically offers a wider selection of assets and ensures a more efficient and fair trading environment.
Another key factor is trading fees. Before signing up, check the platform’s investment fees. To maximize profits, you must minimize expenses. Typically, fees decrease from 0.30% to 0.10% depending on the investment volume. Besides trading fees, also look into deposit fees and the cost of buying via credit card.
The Various Tools Helping You Succeeding in Crypto
To help you succeed in crypto, we’ve selected the best tools for tracking your crypto portfolio, receiving blockchain data, and monitoring the market.
Tools for Tracking Your Crypto Portfolio
Tracking your crypto accounts is easier and faster with portfolio trackers. These tools let you monitor your portfolio in real time and send alerts when a cryptocurrency hits a set high or low price.
- Delta: An app that connects directly to your exchange accounts. It has a user-friendly and intuitive interface, making it a powerful tool for staying informed at all times.
- CoinGecko (website and app): An excellent tool for monitoring cryptocurrency prices. It also allows you to track your portfolio performance, gains, and losses.
Tools for Getting blockchain Data
Information is crucial in the crypto world. That’s why most of the best tools for blockchain data are paid.
- Glassnode and Santiment: Paid platforms that also offer free data on popular cryptocurrencies. For full access and real-time updates, a paid subscription is required. These tools provide all the necessary data for market analysis.
There are also free blockchain data tools:
- Defipulse: Ideal if you use Ethereum. It provides a wide range of information about the DeFi market on Ethereum.
- DefiStation: Focused on the Binance Smart Chain. It simplifies tracking DeFi, DApps, and TVL data on that network.
- DappRadar: Excellent for discovering new crypto projects and getting relevant data.
Best Tools to Explore the Blockchain and Monitor the Market
Blockchain explorers are used to analyze smart contracts, check tokenomics, and access statistical data. Each blockchain usually has its own explorer, but there are also tools that aggregate multiple blockchains into a single search engine.
- Blockchair: A multi-blockchain explorer that offers more accessible and understandable data for the general public.
To monitor market, you can choose between free and paid tools:
- CoinGecko: A free tool providing pricing and exchange data on cryptocurrencies.
- TradingView (with fee): Offers the same data as free tools but with greater precision. It allows users to create and share custom charts and indicators with the community.