With over 14,000 different types of cryptocurrency tokens in circulation boasting a combined market cap of over $2 trillion, it’s fair to say that cryptocurrency has taken the entire world by storm. There’s no sign of it stopping either, with new and exciting applications and blockchains being developed every day.
Cryptocurrency Trading Tools
Unlike most other industries, cryptocurrency isn’t dominated by a specific set of corporations or brands. Instead, it provides the perfect environment for new and up-and-coming developers to pitch their products and get the recognition they deserve. This has encouraged a wave of innovation and out-of-the-box thinking that has expanded the world of decentralized finance (DeFi) considerably.
Needless to say, cryptocurrency trading has become a popular income-generating source for a lot of people. Unfortunately, the recentness of the crypto market makes it difficult for newcomers as well as crypto veterans alike to accurately analyze assets that could potentially be profitable. And if traders aren’t careful, a bad trading call could cost an investor thousands of dollars in losses.
This makes investing in cryptocurrency a risky venture. It becomes even riskier if you don’t know how to study and analyze different cryptocurrencies and trends. Traders shouldn’t just throw money into a crypto asset without doing some research. Before making any trade, they’ll need some background information on each asset for technical and fundamental analysis.
Thankfully, the information needed to make informed investment decisions is fairly easily obtained with the correct crypto research tools. Unfortunately, finding these tools can be difficult, and without them, investors can risk missing out on the next potential 100x cryptocurrencies as well as important information about their investments.
Crypto trading tools refer to a wide range of products and services that help investors build and manage their current cryptocurrency portfolios, as well as keep track of other potentially profitable tokens.
A good number of these tools are for tracking different crypto coins and they help investors monitor the volatile prices of their crypto investments. This helps investors make calculated buying and selling trades that correspond with their financial goals. Other tools focus on actual investing, with integrations that allow users to exchange different types of cryptocurrency.
1. News Aggregators: Market sentiment has a significant impact on cryptocurrency pricing. Whether they are rumors or true news, they all have an impact on the market price one way or another. A good example of this is how Elon Musk’s tweets affect the prices of crypto coins.
There are so many crypto-related news sites that keeping track of the most important ones is difficult. That is where news aggregator tools come in. They provide up-to-date information on the newest crypto news in one easy-to-read feed. This saves investors and traders from sifting through multiple tabs or websites to find what they’re looking for!
2. Crypto Events Calendar: Coins with a strong community, an active development team, and frequent developer updates are all good markers of a long-term digital asset. Check out crypto event calendars to see what’s going on with a specific coin. These will help keep users up to date on the latest industry events and conferences.
3. Trade Mirroring Tools: Mirror trading is a popular trading strategy that’s applied in currency and asset markets. It’s a system that allows investors to mimic the trades of experienced and successful traders and execute them in their own accounts in near real-time. Mirror trading was once solely available to institutional clients, but it has subsequently been made available to regular investors via a variety of tools and platforms.
4. Trade Automating Tools: Trading automation tools (aka bots) are the best options for anyone who would like to skip the long research hours required to locate good opportunities and jump right into trading. There are different types of trade automating tools; some allow users to simply use their pre-set trading strategy, while others allow users to build their own unique strategy.
Those considering investing in a bot should do some research on the project by reading online reviews from real users, looking for a useful support feature, and learning about the developer’s background and expertise.
5. Portfolio Management Tools: If you have a diverse crypto portfolio and utilize multiple exchanges then you’ll want to monitor how each of them performs individually. Cryptocurrencies’ values fluctuate frequently, making it difficult to keep track manually. An online portfolio tracker, which allows you to check the value of your assets at any moment, is a better option.
Unfortunately, Portfolio management tools are vulnerable to hackers because function by connecting to your wallets and exchanges through the cloud. As a result, while choosing a portfolio tracker, it’s always a good idea to search for top-notch and up-to-date security features, as well as other features that make tracking your crypto investments easier.
6. Coin Price Tracker/ Crypto Scanner: It is advisable to check a coin’s market data before heading to trade on the crypto exchange. Investors can find these information by using crypto scanners that display multiple coin’s indicators over a specified time frame.
The current price, market price percent change, volume, and market capitalization are all common features of popular coin trackers/ crypto scanners. However, there are going to be some variances if you compare one coin with several trackers. It’s best to monitor at least three separate crypto exchanges with a crypto scanner when dealing with a decentralized market.
7. Wallets: In crypto trading, your wallet functions similarly to a bank. Your best protection against malicious hackers is with reliable wallets. Getting hacked is a quick way to lose your portfolio, so it’s important to protect your private keys and always ensure you are transferring your assets to the right address.
8. Crypto Mining Tools: Simply put, mining is a way to participate in the network by assisting in transaction validation and network security. In most cases, you just download mining software for a certain coin and get started. You are awarded coins in exchange for your efforts. It can be incredibly profitable if you mine a currency early on, which can yield you 1000s of coins, and the price rises in value.
9. Centralized Exchanges (CEXs): You’ll need to use a cryptocurrency exchange if you want to buy or sell cryptocurrencies. These online services work like stockbrokers because they allow you to buy and sell digital currencies.
The first and most popular type of exchange is the centralized exchange. These exchanges require some KYC (or Know Your Customer) info for certain transactions. Trading volume and liquidity is usually high on these exchanges.
However, CEXs, work counterintutively to the idea of decentralization since they are owned and operated by a specific entity or corporation. They run on their own private servers, and if the company’s servers are hacked, the entire system may be taken down for an extended period of time.
10. Decentralized Exchanges (DEXs): A decentralized exchange performs some of the same functions as a centralized exchange. The main difference is that the underlying infrastructure of these exchanges is decentralized. DEXs usually have the advantage of not requiring customers to deposit funds with the exchange, allowing them to keep their assets safe in their wallets. In the end, decentralized exchanges provide customers with more security, but they are generally more complicated to use and rely on liquidity pools which may mean less volume.
Algory is one of the cryptocurrency industry’s fastest and most advanced news streamers. It was designed for merchants that trade quickly. Algory helps its users monitor thousands of news sources in a single spot and choose from multiple news filter combinations (e.g. news from websites, Twitter, Reddit, YouTube, news about airdrops, regulations and more).
With Algory crypto news aggregator you can also search news by date or by keywords and search crypto news sources in 3 different languages.
CoinMarketCal is a cryptocurrency calendar site that uses a community-based structure to collect and verify events. The platform allows its users to add crypto events, which will then go through a verification process in which users can vote up or down the legitimacy of the material on the website.
It has gradually polished its listing criteria to the point where the data provided by the community is quite accurate and so valuable. Coinmarketcal allows visitors to filter events by coin, category, exchange, and date in addition to listing generic cryptocurrency events. Coinmarketcal covers all bases and events through Twitter and Telegram bots, as well as an email newsletter.
Coinmatics is a cryptocurrency copy trading and analysis tool that debuted in 2018. The platform is a fantastic tool for both novices and experienced traders. In a nutshell, the service allows investors to automatically or manually copy crypto transactions.
For traders, Coinmatics is a way to make money by expanding their subscriber base and profiting from their duplicated trades. Coinmatics’ major feature is crypto copy trading. Currently users are able to copy 40 different traders and the platform boasts over 3,000 registered copy traders.
Coinrule is one of the best software for crypto trading currently accessible. It makes it easy for traders to keep to a solid crypto trading strategy without having to spend the whole day staring at their computers screens.
You won’t need any coding knowledge to use Coinrule, unlike many other trading bots. Coinrule is a wonderful alternative for newcomers to Bitcoin trading as well as more experienced traders, thanks to its basic, intuitive design. Coinrule is a web-based wallet that supports a wide number of different cryptocurrencies and the platform can also work with the most popular exchanges.
Coin Market Manager (CMM) has grown in popularity as a platform for trade analysis and crypto portfolio management. For traders who want to focus on outcomes and profitability, it provides a full crypto accounting breakthrough. This crypto portfolio analysis tool also provides real-time market tracking and statistics for users.
CMM offers never-before-seen individual trade insights as well as an analysis of your whole trading history and results. This type of practical feedback highlights your plans’ strengths and flaws, and it’s all done automatically with just a few clicks.
6. Top Coin Price Scanner/ Crypto Scanner – Algory
Algory’s Cryptoscanner is one of the best crypto analysis tools as it continuously analyzes marketplaces for information on thousands of coins entered into the tool’s database. The cryptoscanner shows data from the 15 most popular exchanges listing cryptocurrencies. The trader gains access to information regarding cryptocurrecies and crypto indicators of his choice in milliseconds.
The Cryptoscanner gives users the option of selecting from hundreds of different alerts and filters like price, volume, spread, percentage change, positive and negative candles and much more.
Coinbase is a CEX that also developed their own digital currency wallet. The wallet can be used to buy, sell, transfer, and store crypto as it integrates with the CEX aspect of Coinabse as well. It uses offline storage to safely store a wide range of digital assets. A wide range of cryptocurrencies can be bought and sold from this wallet provider, and you can keep track of them all in one place.
Coinbase has a mobile app for both iOS and Android and crypto trading can be done on a daily, weekly, or monthly basis on this platform. Coinbase safeguards your cash by storing them in a secure vault and new users receive $5 in free Bitcoin. The platform currently supports over 100 countries.
CGMiner operates with a command-line interface that enables users to manage computer fan speeds and other hardware settings as well as mine their rigs remotely with simple instructions from the keyboard. The software also provides an advanced detection speed of new blocks and allows for the rapid scaling of hashing power.
CGMiner is cross-platform compatible and can even run on Mac and Windows systems while being based on Linux. The open-source software’s code can be easily verifiable by anyone because it is written in C. CGMiner is cross-platform compatible and works with a range of mining gear, including FPGAs, GPUs, and CPUs, in addition to ASICs. CGMiner is accessible on GitHub and is free to download and use.
Binance was created in 2017 as a cryptocurrency exchange platform with a major focus on altcoin trading. Since then, Binance has dominated the worldwide exchange space and as of November 2021, it accounts for a major share of daily cryptocurrency trading volume despite its ban in the USA in 2019.
Binance is a good choice for anyone looking to trade or invest in lesser-known altcoins. Binance is also a wonderful alternative for traders who need more advanced charting than what is offered on other exchanges. For the low prices on the platform, the data, graphing capabilities, and tools it gives its users access to are quite incredible.
SushiSwap is one of the largest DEXs by total value locked (TVL) and supported blockchains. The platform supports 14 different blockchains, which allows users to use it to trade just about any cryptocurrency in existence.
The platform also provides users with the ability to become a liquidity provider by supplying their tokens to a liquidity pool, as well as participate in farms. For traders, SushiSwap is an extremely versatile tool with plenty of liquidity and volume to help facilitate trades.
It’s quite obvious that cryptocurrency is gaining traction and carving out a niche for itself in the mainstream financial industry. In just a little over 10 years, more than 10,000 new tokens have been developed. However, due to the volatile nature of cryptocurrency, hundreds if not thousands of these coins will end up failing eventually.
As you add more of these volatile assets to your portfolio, you’ll need to spend more time tracking each of them individually to ensure you’re making sound investments. Unfortunately, in today’s fast-paced world, a lot of people don’t have the luxury of that kind of free time. This is exactly why we need crypto trading tools.
The best crypto analysis tools help users easily keep track of the performance of each crypto asset in their portfolio — and sometimes other assets as well. What’s more; these tools will only become more valuable as more crypto projects continue to be developed and the portfolio of average investors becomes more diverse and harder to manage. So set yourself up for success and invest in the right tools to optimize your trades and profit.