Here are the best cryptocurrency trading tools that you can use as a beginner in the digital world.
Crypto trading is one of the latest trends and it has seen significant growth from the past two years. From individuals, retail investors and institutional investors started making huge investments in the crypto space.
Trading cryptocurrency as a beginner is overwhelming as the market is volatile. You can make huge profits or incurable losses in a short period. It isn’t always possible to know the right time to enter and exit the market. However, certain tools will help you trade cryptocurrency efficiently and gain maximum profits. Notably, trading cryptocurrencies work differently from trading stocks and the forex market.
This article will list the tools that will help you get an optimized trading experience. You can increase the chances of winning profits as a beginner if you know how to use one of these.
Cryptocurrency Trading Tools
When you are a beginner, it will be difficult to understand the ups and downs of the market. Besides, there are thousands of cryptocurrencies available now and the market works around the clock.
As a beginner, you can access cryptocurrency trading tools to navigate the market easily. Certain tools will also help you analyze the market to make better decisions. Let’s look at some of the best cryptocurrency trading tools.
Tools to buy and sell cryptocurrencies
Involving in the cryptocurrency industry requires you to convert crypto coins into fiat and vice-versa.
Apart from trading, you can also use a platform to make crypto onboarding and offboarding simple and quick. There and P2P exchanges out there and try decentralized market maker like XanPool that gets a good price with low fees for your crypto purchases using local payment method.
Crypto profit calculators
Crypto profit calculators can allow you to find out the profits within minutes. As a beginner, you can focus more on other technical aspects by utilizing profit calculators.
When you invest in multiple coins, calculating profits will become a cumbersome process. The tools that enable you to estimate the profits will save you a lot of time.
One of the simple profit calculators is Sabe. You just need to enter some basic details like the cryptocurrency and number of coins, cost price, etc. Sabe tool constantly updates the data from CoinMarketCap exchange rates to provide its users the best possible and updated results. Easy Bitcoin calculator is also a crypto profit calculator. This tool will also allow you to include the fees charged for transactions.
To store cryptocurrencies, you require wallets. There are different types of wallets like cold wallets and hot wallets.
Generally, people use cold or hardware wallets to store a majority of their holding for a long time. For regular transactions and trading purposes, hot wallets are the most popular.
Exchange wallets are used by most beginners as they are user-friendly. However, if you want to store your coins for a long time, Ledger Nano is the best hardware wallet. Exodus is also a good option and it provides both software wallets like desktop, mobile wallets, and also hardware wallets.
Cryptocurrency tax tools
Calculating the taxes for the profits gained in crypto trading is also an integral part of the trading.
The tax structure is not completely defined in many countries yet. It is recommended to know the tax updates and act accordingly. As the regulations are yet to change, it will be difficult to audit tax payments for crypto trading.
CoinTracking enables you to calculate your taxes for your cryptocurrency investments. This crypto tax accounting firm connects to exchanges. It allows you to file your tax return by keeping track of your trading activity. Cryptotrader.tax and TokenTax are also the tax tools that will allow you to audit your taxes.
Data Analysis and Information Tracking
Crypto portfolio tracking tools
Diversification is essential in crypto trading. If you have a diversified portfolio with multiple coins, utilizing a portfolio tracker will be beneficial.
A portfolio tracker records your trading activity and there is no need to maintain a google sheet. It enables you to study your trading data and you can also analyze the token’s performance.
One of the promising cryptocurrency portfolio tracking tools is CoinTracking. A beginner can utilize this tool for their diversified portfolio. This portfolio tracker can track investments in around 24 cryptocurrency exchanges. Traders can also import the data into this tool through an API.
Tools for following the crypto market trends and data
It is important to analyze the data from technical and fundamental points of view to understand each cryptocurrency.
The cryptocurrency market data will help you comprehend the total market of all cryptocurrencies and different exchanges.
One of the best tools to analyze the market data is CoinMarketCap. It will help you get a better understanding of the market and the token in question. The website provides complete data like token’s price, rise or drops from the past 24 hours as well as from the past week, trading volume, market cap, etc.
Tools for technical analysis
The analysis is an important aspect to estimate the price changes of cryptocurrencies.
To analyze the technical and fundamental elements of a particular cryptocurrency, a trader would have to study various chart patterns. Charts show the uptrend and downtrend graphically in a simple and understandable way.
TradingView is so far the best charting and technical analysis tool for the crypto market. They have integrated the tool with the most popular crypto exchanges and are providing the best possible results to their users. Some of the other tools for technical analysis are Coinigy and cryptowat.ch.
Crypto tools for news and updates
When you are a part of the crypto industry and crypto trading, it is important to keep updated with the latest news and updates.
Cointelegraph is a renowned news website that provides news from all over the world.
CoinDesk is also one of the best websites to get daily news updates in the crypto and blockchain space. You can even follow industry experts on various social media channels to know the updates.
Explore the world of crypto!
It is crucial to research and study the market before going all-in into the crypto market. The trading tools will help you in different aspects and makes your trading simple. The crypto trading tools will increase the chances of getting more profits by analyzing the market and keeping track of your portfolio.