Must Have Tools for Cryptocurrency Trading

Regardless of whether your money is in physical or digital form, the act of trading plays a part in its distribution and its existence. The distinguishing factor between the two types is that there is arguably more intricacy to the process of cryptocurrency trading. Because digital assets are – at their core – pieces of data. This usually means there are more complex steps necessary to exchange it with other parties.

The same can be said for other similar factors, such as analysis, storage, and even the inclusion of social media. Undoubtedly, some of these are more straightforward than others, but that does not detract from the quantity and probable intricacy.

How can one go about understanding this overarching complexity? The answer is just this: having the proper tools.

In the case of crypto trading, these are not physical tools; much like cryptocurrency itself, they exist digitally. These include apps, websites, and various platforms. This article will go into detail about some of the best tools for crypto trading. While the length of the subsequent list may come off as intimidating to some, it is necessary in order to showcase the wide variety of tools in the market today.

A brief introduction to crypto trading markets and currency

Cryptocurrency trading is a process that involves exchanging one digital currency for another, purchasing and selling coins, and exchanging fiat money for crypto. The amount of cryptocurrencies that exist worldwide has grown considerably in recent years. Estimations suggest that there are more than 1,500 working cryptocurrencies in existence. If you are someone who closely follows crypto markets, then you must know just how profitable these markets can be.

The number of opportunities driving from these markets is amazing, and so is the rate at which these assets are achieving. Of course, you cannot wholly invest your money and attention into these markets without properly understanding them. Traders, by their very nature, are more than willing to accept risk in order to make some cash.

All in all, it is important to be smart and mindful when it comes to accepting financial risk. This will require making informed decisions that evolve from the intake of reliable information. To make these wise decisions, we need the right tools and sources of information. These tools and sources effectively allow us to understand the predominant trends in the market, as well as investor sentiment(s) and more.

Below is a list containing the best cryptocurrency trading that every dedicated crypto trader should have at their disposal. Whichever is the best for you is entirely subjective, but at least you will have a variety to choose from.

Market Information Sources

Cryptocurrency Trading Tool CMP logo

1) CoinMarketCap

This is by far the most popular source for crypto information and is the first thing people who are savvy with cryptocurrency think of whenever they hear “market capitalization.” It is a website that collects all of the vital information that exists in cryptocurrency trading markets. With a single glance, you can easily get a decent picture of all investment assets. Not only that, you can remain updated on market capitalizations, alterations in total trading volumes, and you can even get 7-day price charts.

The page provides users with data pertaining to several listed coins, including their price, available supply, and trade value over the duration of the last 24 hours. Posted statistics are updated every 5 minutes and the market capitalization is calculated by multiplying the price by the circulating supply. Prices are calculated by averaging the major exchanges’ prices weighted by volume. Coins possessing stale data points (i.e. ones that are more than 6 hours old) are shown at the bottom of the list with question marks. They are later delisted after 7 days.

Cryptocurrency Trading Tool Cryptowatch logo

2) CryptoWatch

This is another one of the most notable websites centering around market information. It is seen as a hybrid of CoinMarketCap and BitcoinWisdom, but comparatively better. This platform provides an array of interactive charts on all of the cryptocurrencies. The system this site runs on is a great way to get an overview of all of the markets through its highly perceptive charts.

A perk of CryptoWatch is that it offers its users tradeable charts that are similar to NinjaTrader. This basically means that it also functions as a cryptocurrency trading software. Unsurprisingly, it is a paid service, but with that said, it is still valuable. Moreover, you can test it out for free with their 30-day trial free of costs.

To answer any questions pertaining to what tradeable charts are, they provide users with a way to trade directly off the charts. To do this, you click on the price level you want to purchase and you can also click and drag to adjust your pending orders. This includes stopping orders.

Cryptocurrency Trading Tool IcoStats logo

3) Icostats

An ICO (Initial Coin Offering) is a method in which companies raise funds that are necessary for further development and expansion. It is essentially something akin to a fundraising campaign and is also a crypto spin-off of the IPO (Initial Public Offering). If this is something that interests you and you want a system that’s like CoinMarketCap for ICOs then Icostats is the perfect platform for you.

On this website, you will be able to find all of the credible ICOs. Included also is the basic information behind the offering and you are actively kept up to date on all upcoming pre-sales. The most important feature on the platform is its profitability calculators for ICOs, which come in handy if you want to conduct an analysis for existing and/or potential investments.

Analysis and Trade Tools

cryptocurrency trading tools Trading View logo

4) TradingView

This is a trading service and it’s also a social media platform for traders and investors alike. It provides detailed charts that are of the same caliber as most professional charting platforms. Seeing as how this also functions as a social media platform, you are able to go through a variety of traders’ histories and follow them. With this, you can learn from their experiences and expertise.

The website allows you to find every single type of indicator, an oscillator (a common tool for technical analysis), and trading strategies imaginable. In addition, it offers one of the largest libraries of community built trading tools as a means to further enhance our trading experience. Overall, it’s a ginormous bank full of knowledge when it comes to tools and ideas. It is a prime location for traders to engage with more professional traders.

Cryptocurrency Trading Tool Coinigy logo

5) Coinigy

This is a cryptocurrency trading software that connects to all of the major cryptocurrency exchanges. It allows its users to trade directly off the charts by utilizing this platform. Generally speaking, it is up to you and your personal preference if you would like to trade off the charts or if you would rather enter price levels into a bar like most trading platforms.

Until the time comes when TradingView is able to provide chart-trading for most cryptocurrency exchanges, Coinigy will stay peerless. Admittedly, it’s probably not the best platform for chart analysis. However, it does offer some of the best and most powerful execution tools. Furthermore, it is incredibly valuable for day-traders and/or persistent traders.

Cryptocurrency Trading Tool Blockfolio logo

6) BlockFolio

This is a mobile app that was constructed to be a multi-platform tracking investment portfolio. Users are able to use the app as a way to create a portfolio that actively tracks all of your investments. These are tracked across multiple exchanges and platforms.

So, how does this service work? Let’s assume you have Bitcoin on CoinBase, Ethereum on Bitfinex, Ripple and Monero on Poloniex, and NXT and Bytecoin on Bittrex. This is a relatively impressive portfolio, but it exists across a number of different exchanges. It lowers rates that relate to exchanges, but it significantly increases the difficulty to keep track of them all.

This is where BlockFolio comes into play. The app allows you to view all of your investments on a single platform. You are even able to view price charts, set alerts, examine order books, volumes, and many other protocols. It essentially makes managing your investments a lot easier and this is why it’s considered one of the best tools for trading and analysis.

Cryptocurrency Trading Tool GitHub logo

7) GitHub

This is widely recognized as a web-based hosting service that is primarily used for computer code. With that in mind, there’s a valid reason for its inclusion on this list. First and foremost, it is an open-source archive for apps, codes, and algorithms, among other things. This means that if there is any interest in something, you will find noticeable activity on the archive.

With this, you can focus on two key things. The first is the number of commits, which equates to the interest or activity in something. You are able to keep an eye on your preferred cryptocurrencies and keep checking the number of commits on the website. If the total number of commits was to increase considerably, it is guaranteed to lead to an increased interest from the community in cryptocurrency. This could potentially affect its overall price as well.

Aside from it being useful as a type of predictive indicator of future prices, there are additional uses, too. This is especially true for those who are more technically gifted. You are able to find thousands of different types of trading algorithms, trading bots, integration APIs (Application Program Interfaces), and so much more.

Cold Storage Hardware Wallet

Cryptocurrency Trading Tool Ledger Wallet logo

8) Ledger Wallet

It should be common knowledge that safeguarding your investments and profits is incredibly important. There is arguably no better way to do this than by transporting your investments or profits into cold storage. For those who do not know, cold storage is an offline digital wallet that is stored on a platform that is not connected to the Internet. Because of this, the wallet is protected from any unauthorized access and cyber attacks.

It should be noted that there is another form of storage for crypto that is the opposite of cold storage. This is – appropriately titled – hot storage. This is data that needs to be accessed as soon as possible. For example, if the stored information is centered around business affairs and you cannot wait for it when you need it, then that would be appropriate for hot storage.

The Ledger Wallet service is said to be one of the better options for people looking for a hardware wallet to store their cryptocurrencies offline. One of its most notable qualities is its starting price of $63. Moreover, it supports pretty much all of the popular cryptocurrencies. These include, but are not limited to:

  • Bitcoin
  • Bitcoin Cash
  • Ethereum
  • Litecoin
  • Dash
  • Dogecoin
  • Zcash
  • Ripple

Regardless of whether you lose it, break it, or anything else happens to it, the Ledger Wallet is resistant against it all. It is by far one of the best – if not the best – hardware wallet. It guarantees the protection of your cryptocurrencies and keeps them secure.

Social Media Tools for Cryptocurrency Traders

Cryptocurrency Trading Tool Slack logo

9) Slack

This tool is an online collaborative workplace. It contains a good number of groups where professional investors and dedicated traders flock to and discuss crypto trading markets, strategies, and new cryptocurrencies. The information shared amongst these groups is said to be basic, yet crucial. Two groups that have been recommended are:

  1. Cryptominded
  2. Crypto Aquarium

It should be noted that these are just suggestions. It wouldn’t hurt to go out and uncover more groups that could help with increasing your profitability.

Cryptocurrency Trading Tool Telegram logo

10) Telegram

This is an instant messaging service not unlike Facebook Messenger. Similar to Slack, you can easily find cryptocurrency-centric groups on this platform as well. As a matter of fact, there are far more groups to choose from on Telegram, which means you will have to conduct more research to find the valuable ones. This process would indeed be extensive, but it will prove to be beneficial in the long run.

The following are some recommended groups that are worth looking into:

  • @WhaleClubBTC
  • @TheCoinFarm
  • @AugerProject
  • @GnosisPM

11) Reddit

This is a platform deemed as being the front page of the Internet. It is also one of the most recognizable names on this list. It is the primary source of all news and information relating to crypto. If you are someone who is serious about cryptocurrency trading, this platform should be second nature to you. It’d be a wise idea for you to familiarize yourself with the ins and outs of Reddit as a whole.

Every cryptocurrency has a white paper explaining the problem they are solving and the technology involved. This is basically the ideal place to go to if you want to retrieve your information straight from the source. You may also frequently find some of the most serious crypto-enthusiasts on Reddit trying to get more information from creators to better understand new currencies or updates for those that already exist. This is the ideal place for you if you want to be kept in the loop on breaking news.

Finding information on cryptocurrency trading is quite simple. All you have to do is Google the name and write “Reddit” at the end of it. You will find both its official Reddit page and other pages related to the cryptocurrencies.

12) Facebook groups

This one is pretty self-explanatory. It’s a surprise to no one that Facebook is the largest and most commonly used social networking platform. With this popularity comes the growing number of individuals actively networking and talking about crypto-markets on Facebook groups.

Not much is going to be said about this tool/platform because the knowledge surrounding Facebook functions is commonplace. In lieu of this absence, here are a few recommended groups that should be looked into:

Conclusion

In hindsight, it’s no wonder that some of the more experienced traders spend so much on their cryptocurrency trading tools. Your success in the exchanges depends heavily on the tools you have at your disposal. It makes sense that you would want to have the most highly recommended tools readily available.

While a good number of these tools guarantee a certain level of success, it ultimately depends on you. The choice as to which is the best of the bunch is entirely subjective, depending on your cryptocurrency trading needs. Whichever tool(s) you pick might not work as well for others. Be that as it may, there are so many tools to choose from that if one doesn’t work out, there are always others to look into.

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