Crypto trading can be quite lucrative. Most traders may rely on historical data to forecast the trend or utilizing technical indicators like the relative strength index indicator to determine the overbought and oversold level of the digital assets. Either way, crypto trading tools are inevitable for a market watcher, portfolio balancer, or even novice traders who need help to get a good grip of the crypto world.
But with the overwhelming choices available today, we rounded up some of the best trading tools for a more seamless automated trading experience.
Why are Crypto Trading Tools so Important?
Trading tools are software that helps traders to evaluate the pattern and analyze the market sentiments. Technical indicators integrated within these tools can be helpful to identify the buying and selling opportunities.
Technical analysis helps traders to get a sense of the market cycle and many other parameters. In a way, it guides beginners to understand better the fundamentals of cryptocurrency trading or trading in general. For example, a fully automated trading bot comes in handy for algorithmic crypto traders who heavily rely on a specific calculation, processing data, and automated reasoning to trade quickly and at a higher capacity.
Although trading tools are not 100% accurate, they still give valuable information through chart patterns and historical data.
Best Charting Tools
Charting software and tools help traders recognize and draw possible chart patterns they find in the market. With the best cryptocurrency trading tools, traders can analyze the prospect of a specific coin or trading pair.
If you are a technical analyst, a trader, or simply curious about the market, you can use different trading tools to identify patterns and trends.
TradingView is perhaps the most recognized site for drawing chart patterns and use indicators. Although the site is technically free to use and has been integrated into different websites, there are still some limitations compared to the paid version. For example, the paid version allows you to carry out technical analysis with up to 25 indicators simultaneously and with alerts that never expire.
Let’s say if you believe you’ve found a bull flag pattern of an asset, TradingView provides you with the tools necessary to draw it in the chart and get a clear idea of where the market is headed.
Shrimpy is another social trading platform for the cryptocurrency market. You can connect your Shrimpy account to your crypto exchange and automatically copy some of the best and most accurate crypto traders in the world.
Moreover, Shrimpy works as a portfolio management platform. You can manage and grow your portfolio with a clear user interface and advanced trading tools. At the moment, Shrimpy can be linked up to 16 cryptocurrency exchanges.
Quadency is a platform that offers both retail and institutional traders the necessary trading tools to automate their portfolios. The platform works as a trading terminal, getting data from the major exchanges in the crypto market.
Although the platform offers most of its trading tools for free, a premium account includes advanced options trading tools for expert traders.
Market Watching Tools
Getting accurate market data is as important as being able to use a crypto trading tool. The more accurate the information received, the better the results for a trader who needs to make strategic decisions.
When analyzing market data, users should look for websites that share the main parameters from crypto exchanges, digital assets, and the entire crypto ecosystem. Information you can find includes volumes, inflows, and outflows from exchanges and unspent transactions.
If you already have the best day trading tools, then you might consider using CoinMarketCap. This is one of the oldest, most popular services online to get free market data.
You can easily receive information about crypto prices, The market capitalization (or market cap) of a cryptocurrency is a measurement of its market value. In other words, it..., trading volume, exchanges, and trading pairs, among other things. You can also have a look at historical prices and data.
Cryptocompare tracks the most important information and data from exchanges, digital assets, and crypto news sites. Cryptocompare and Coinmarketcap are strong competitors that try to attract the largest number of users possible.
Cryptocompare offers free trading tools that include accurate data about crypto projects, virtual currencies traded on exchanges, and more. Their API documentation is easily accessed and can be integrated into multiple apps.
If you’re searching for advanced trading tools, then Santiment is the right platform to use. Santiment is a behavior analytics company that focuses on cryptocurrencies. They gather the most valuable on-chain and off-chain information of the largest and most valuable virtual currencies in the market.
This data feed for investors aims to become one of the most recognized sites for tracking data and information about digital assets. You can apply your crypto knowledge and trading tools to the figures they share daily.
Institutional investors require some of the most advanced information to make their investment decisions. Skew focuses on institutions and large traders which require blockchain data, crypto information, and some of the most accurate data feed.
The platform tracks cryptocurrency markets in real-time and helps traders execute their trades on different crypto exchanges. Skew has become one of the favorite platforms for larger traders and investors.
Glassnode is a blockchain and crypto intelligence provider that shares blockchain metrics from the most valuable blockchain networks in the market. Companies and firms use Glassnode to plan their investment strategies, enter the market and exit some traders.
At the same time, larger firms use their data to make investment decisions on behalf of other investors. The data they share includes on-chain fees, trading activity, withdrawals, and deposits to centralized and decentralized exchanges.
Crypto Projects Calendar Tools
Never again do you need to miss a chance of being an early investor in the most promising projects in the market. Crypto projects are being released daily and even more during bull markets. Thus, these new coins and projects can have a positive impact on the entire market.
You want to make sure that you have a consolidated view of the upcoming projects in the crypto space. Here are some pages that will help you keep track of the latest initiatives in the crypto ecosystem.
CoinMarketCal is a leading recognized calendar that covers the latest events and news in the crypto market. This helps traders and investors make investment decisions and keep an eye on the most impactful events.
Traditional investors follow economic calendars. Crypto traders use CoinMarketCal to get an update of the latest news, events, and projects being released to the market.
CryptoMiso is a website that follows the Github commit history of cryptocurrencies. The most popular crypto projects have very active teams of developers who work on new solutions and implementations.
The larger the commits of a project, the larger the developer activity behind it. Some investors pay close attention to this metric to understand which projects remain alive and which ones are left behind.
Coindar is another popular cryptocurrency events calendar. The company is sharing the latest information about digital assets, blockchain events, news, and more. Some of the topics include airdrops, new coin releases, hard forks, and crypto listings.
Some of these have a strong impact on the price of virtual currencies. A hard fork could push the price of an asset higher. A failed event could damage the price of a cryptocurrency.
Keep Up with the Network and Crypto Ecosystem
To understand and analyze crypto projects, it is certainly important to have a place to get information about hash rate, gas fees, halving data, mining effects, and more.
This data can be presented in charts or reports. Investment decisions made in advance thanks to on-chain data could be very profitable over time. Combining this information with other trading tools is usually what larger investors do.
Coin Dance is a community-driven Bitcoin statistics provider that shares the latest Bitcoin trading volumes, price, market valuation, block data, and hash rate. The site focuses on charts that make it easier for investors to understand coin valuations and network behavior.
Bitcoin Visuals focuses on Bitcoin information about the Lightning Network (LN), Bitcoin nodes, crypto stats, and many other things. Although their trading tools focus on Bitcoin, they have also added information about other networks.
Some of the metrics they share include price, capitalization, exchanges, fees, Transactions per second (TPS) is the number of transactions a blockchain network can process each second or the number o..., block size, block speed, and chain size. Fundamental analysts value this type of information and consider it very basic to understanding the valuation of some cryptocurrencies.
While the previous sites focus on Bitcoin, Etherscan offers the latest data from the Ethereum (ETH) network, the second largest in the world. Etherscan works as a block explorer and as a tracker of gas prices, ETH transactions, and ERC-20 accounts.
Investors that have a diversified portfolio with different ERC-20 tokens should closely follow the information shared by Etherscan.
Portfolio Management and Tracker
Managing your cryptocurrency portfolio requires using a wide range of trading tools. To keep track of your funds and information, some crypto trading tools can better understand the funds you manage.
Coinstats provides investors with a portfolio tracker that gets information from different crypto exchanges and helps track and manage them in just a single place.
This application is now tracking more than 8k different virtual currencies. It can connect to more than 300 exchanges from all over the world.
Kubera claims to be the world’s most modern portfolio tracker. They focus on the large number of assets that are currently available in the blockchain industry. Managing a portfolio that includes cryptocurrencies, traditional assets, and commodities can be difficult.
This is why Kubera wants to ensure that all your assets and portfolio information are clearly displayed to you.
Crypto Pro is a portfolio tracker application that focuses on cryptocurrency assets. This is one of the most often required trading tools for large investors. The company has a desktop application, and you can also download apps for your smartphone, Apple Watch, or tablet.
You will get the best information about the largest digital assets in the world. Moreover, you can track the performance of your portfolio anywhere you are.
Coin Market Manager
Coin Market Manager is an accounting solution for traders who want to follow their portfolio measured in Bitcoin (BTC). The platform monitors the price of Bitcoin on a wide range of crypto exchanges.
Rather than opening each of the exchanges to know your BTC position, you can always use Coin Market Manager to get all the information at once.
Portfolio Rebalancing Tools
Having a diversified portfolio is not enough. Investors rebalance their digital assets regularly to restore target allocations of risk over time. This is very important in the cryptocurrency market because of the volatility of the market.
Some asset allocations could suddenly double or triple. Without rebalancing your portfolio, the risk level that you take can be higher than what you’ve initially planned.
3commas is a trading platform that provides access to traders to different trading bots. Nowadays, the cryptocurrency market has become highly automated. This is why smaller and larger traders are now using 3commas as their solution to automate their trades on different trading platforms.
The site works with most of the crypto exchanges in the world. Some of the most popular bots include dollar-cost averaging and portfolio rebalancing. In this way, investors can rely on these trading tools to reduce their time in the market.
Crypto trading bots are an integral part of the market. Bots reduce the time you need to spend in front of a computer. They follow the rules and execute them as soon as certain parameters are met. At the same time, there are some strategies (mostly scalping) that cannot be done manually.
Remember that a trading bot automates your trades, thus making it faster, easier, and more convenient to run advanced strategies.
HaasOnline is one of the best automated trading bots for traders who want to execute the most advanced trading strategies. This trading bot uses script language and covers not only complex strategies but also simple solutions. Haasonline allows users to optimize different settings and parameters with different algorithms to run their trading scripts and profit from algorithmic crypto trading.
For example, Bybit users can integrate the platform’s trading API with HaasOnline for a high-performance algorithmic trading experience. It is flexible and allows traders to formulate a suitable crypto trading strategy based on their preferences. Learn how it works here.
Hyndor focuses on easy-to-use solutions for traders who want to create automated trading strategies in the cryptocurrency market. Users can create their own bots in just minutes.
In addition, users can follow trading signals and the bots can execute them automatically based on the predefined rules and strategies. Hyndor is user-friendly even for beginners, and the HODL 2.0 bot function serves an additional point that eradicates strenuous monitoring and maintenance. Though Hyndor is not a free crypto trading bot, it offers a free trial with terms and conditions.
Scavenger Bot is not a traditional trading bot. Rather, it focuses on leveraged trading. With this platform, users have advanced tools and solutions to trade a wide range of digital assets.
The scavenger bot mainly relies on two strategies, including the market maker and the trading companion. For example, the Market Maker strategy is designed to use along with technical analysis and manual trading. The settings help traders to shield traders from the volatile market shift, contract adjustments, and more. At the same time, the Trading Companion strategy is used in tandem with TradingView to help traders open and close positions via the webhook.
SIRIUS Trader is a platform that helps users create automated crypto trading strategies to reduce their intervention in the markets. Moreover, users don’t have to worry about executing advanced strategies, considering that Sirius Trader is capable of executing them.
Besides, the platform offers different technical indicators, signals, and flexible parameters to help traders compare back-tested results with a performance rating. All it takes is just adjusting the strategy using the optimization function.
What is Crypto Mining?
Cryptocurrency mining is an activity in which an investor participates in a blockchain network processing transactions, securing them, and earning rewards. Mining is a costly activity on a large scale due to the energy consumption of the hardware machines used to mine Bitcoin or other digital currencies.
Depending on the cryptocurrency you mine, you earn different rewards. You can only mine Proof-of-Work (PoW) digital assets such as Bitcoin or Litecoin.
Is Bitcoin Mining Still Profitable?
Bitcoin mining is still a profitable activity in 2021 for those investors who do it on a considerable scale and have access to cheap electricity rates. Depending on the region you’re in, governments may impose some additional restrictions that make it difficult for you to mine BTC or other cryptocurrencies.
It’s worth considering that if the hash rate continues to grow, the difficulty is expected to follow, which could make your mining machines less profitable over time.
Solo mining isn’t the easiest way to mine cryptocurrencies, but it is definitely the most profitable if you have large hash power. However, it’s usually reserved for the largest miners in the industry. Unless you control a lot of hash power of a small blockchain PoW network, you should use pool mining.
Pool Mining/Cloud Mining
Cloud mining is the best option if you’re a small investor who wants to mine cryptocurrencies. Pool mining involves mining digital currencies (PoW networks) and sharing your hash power with other miners.
In this way, the entire pool mines as a sole entity and gets larger rewards. In crypto mining, those users who find the next block with transactions are rewarded with the fees paid by users and the block reward.
For example, Bybit cloud mining allows investors immediate access to ETH mining with minimal entry price. Select and purchase the desired amount of hashrate and harvest ETH directly from the pool based on the predetermined contract.
Best Wallet to Keep Your Crypto Safe
A cryptocurrency wallet helps you protect your funds and become the owner of the money you own. When you use a cryptocurrency exchange, you do not hold the digital currencies you’ve purchased. Indeed, the most important thing you should have is your private key.
When you use an exchange, the platform is in control of your funds. This is why it is certainly important to send the digital assets to a wallet to which you hold the private keys. Hardware wallets are usually the most secure devices to store virtual currencies.
Metamask is the most popular cryptocurrency wallet for users who handle Ethereum (ETH) and ERC-20 tokens. This is a browser wallet that gives you access to your private keys, and that gets connected to different decentralized apps (dApps) and blockchain applications.
MetaMask does not control any of your personal data as everything is encrypted on the browser. While hot wallet remains a certain possibility of threats, MetaMask is considerably safe and trusted by over 5million active users. If you hold several ERC-20 coins or if you want to engage in trading activities through Swap pages and platforms, MetaMask is a good choice to go.
Ledger Nano S
This is considered to be the safest cold wallet to secure your crypto assets. It’s a hardware wallet that you own physically. If you are a long-term (HODL) investor, a cold wallet certainly has an edge to keep your digital assets safe from the prying eyes on the internet. Owning a Ledger Nano means you will be the owner of the private keys that can only be assessed by the owner. The only downside is you might misplace the wallet, accidents, or technical complications.
Finally, Exodus is a very popular smartphone and desktop application that supports many crypto assets. Of course, as in the examples mentioned above, you are the owner of your digital currencies. That means that you hold your private keys linked to your funds.
This wallet is handy for users who want to move their digital assets out of exchanges and stay in control of their funds daily. The user-friendly mobile app lets users send, receive, and spend cryptocurrencies anywhere worldwide without restrictions.
Many crypto trading tools can help you invest in digital currencies and the whole crypto ecosystem. However, selecting the right trading platform, portfolio managers, and trading indicators require a deep analysis of each of these companies’ solutions.
Some cryptocurrency activities should be carefully analyzed, including crypto mining and bot trading. Although they can be profitable, there are always some associated risks. Finally, storing and protecting your funds is definitely a key part of being a digital asset investor.