update 15 October 2021

8 Must-Have Tools for Trading Cryptocurrency in 2021

Trading cryptocurrencies is becoming a lucrative investment sector thanks to the increasing prices of crypto tokens with each passing day. Bitcoin increased by an incredible 170% in 2020 alone, indicating the rapidly expanding crypto space’s massive profitability. While investing in the crypto space is quite profitable, not everyone can realize lucrative returns and create a fortune. 

Having the proper investing mindset and the right set of crypto tools is crucial for success in the crypto space. Cryptocurrency trading tools such as portfolio managers, wallets, market watchers, portfolio balancers, crypto news aggregators, and exchanges make crypto trading seamless and profitable. Here’s a look at the eight must-have tools for trading cryptocurrency in 2021. 

Crypto Exchanges

The first step in investing in cryptocurrencies is choosing a reputable crypto exchange. Three essential factors to consider when choosing a crypto exchange are security, transaction fees, and liquidity. The leading crypto exchanges you ought to consider are: 

  • Binance – Binance is a leading crypto exchange with the most market volume. The exchange boasts of a user-friendly interface with a reliable team. Binance trading fee is the lowest among crypto exchanges at 0.1% and supports a wide range of crypto assets. Users have also been rewarded a 50% discount if they use the platform’s BNB tokens to pay for the trading fees. 
  • Coinbase Pro – Coinbase Pro is another outstanding US-based crypto exchange ideal for large crypto investors. The exchange is FDIC insured, where US users are insured if they lose up to $250 000 on the platform. 

Trading Platforms

Trading platforms streamline cryptocurrency trading by providing a single platform to trade crypto coins across multiple exchanges. Trading platforms eliminate the need to sign up on several exchanges or having multiple exchanges on a single platform. Some of the best trading platforms are: 

  • Tradedash – Tradedash integrates both Binance and Bittrex and other popular crypto exchanges. The platform is based on the desktop, meaning users have to store their encrypted and private keys. The app was designed with high-volume digital asset traders in mind.
  • Coinigy- Coinigy is a popular trading platform in the crypto space launched in 2014. The platform supports over 45 crypto exchanges and integrates trading charts as well. It’s web-based and displays historical data making it one of the trading tools needed by any crypto traders.   

Charting Tools

Charting tools enable you to establish trend lines and trading indicators to determine the market direction. Charting tools are essential in technical analysis for profitable trading decisions. The best charting tools are: 

  • TradingView- TradingView is arguably the best charting tool in the crypto space with comprehensive features, including live trading charts and prices. The platform offers both free and premium features plus added technical indicators.  
  • Cryptowatch- Cryptowat.ch is a product of Kraken exchange and comes completely free of charge. The exchange gives users access to up to 10 trading charts in a single view. It’s an excellent platform for analyzing the crypto market using technical analysis

Market Data

Since the crypto prices are very volatile, every trader needs a constant update with accurate market data such as trading volume, coin prices, and supply. Two of the leading market data source tools are: 

  • CryptoCompare- CryptoCompare has been in the crypto space for quite some time now. The platform offers reliable market data, enabling crypto traders to date with market changes and track their portfolio.
  • CoinMarketCap- CoinMarketCap offers market data as well as crypto price charts. The platform claims to be the world’s leading crypto market data authority, offering crypto traders lots of data, including data authority, prices, exchanges, volumes, and even currency conversion.

Crypto Tax Tools

The implementation of cryptocurrency regulations in several countries led to the taxation of crypto investments. Being a new entrant in the world of investments, most traders are yet to understand crypto taxation models. Crypto tax tools enable traders to understand the model of taxation or how much taxes they owe the state. 

  • Token Tax– Token Tax is well-designed to calculate crypto taxes and total income from crypto investments. 
  • Cointracking.info- This is a sophisticated crypto tax tool that allows users to import their crypto transaction record via an API. The platform then analyzes the transaction records and then comes up with a tax report. In addition to being a crypto tax tool, the platform also has crypto portfolio tracking capabilities.  

Crypto News Aggregators

Apart from technical analysis, fundamental analysis is also a critical factor in predicting market direction. Crypto news aggregators make fundamental analysis seamless by aggregating all news to a single platform. Top crypto news aggregators are: 

  • FAWS- FAWS offers the latest news in the crypto space from various sources thanks to an API connection. It features a sleek user-friendly interface with easy-to-read content. 
  • CryptoPanic- CryptoPanic is an all-in-one crypto news aggregator available for free. It keeps you up to date with the recent happenings in the crypto space. 

Crypto Trading Bots

Trading bots are essential software in the crypto space that assist traders set particular parameters for trading. This software can execute trades automatically and trade on your behalf as you sleep or are busy with other things. You need to set your trading strategy. Some of the best crypto trading bots are: 

  • Gekko- Gekko is an open-source crypto trading software that can execute trades on over 15 crypto exchanges. The bot is available for free, but you need to have some experience to use it. 
  • HaasOnline- HaasOnline is a reputable crypto trading bot and features a user-friendly interface with handy features and over 600 commands. The bot allows you to execute trades in dozens of crypto exchanges in minutes, rapidly. Users can monitor trade in real-time plus generate and auto interprets trading signals. 

Portfolio Trackers

Portfolio trackers are a vital crypto trading tool to assist traders in keeping track of their crypto investments. Portfolio trackers monitor the 24-hour change in the investment, determine the total investment, and monitor each coin’s performance in the portfolio. They are all in one solution for being in touch with your crypto coins. Leading crypto trackers are: 

  • Blockfolio– Blockfolio is the most used crypto tracker. It features a sleek user-interface, real-time trading signals as well as a news section. Blockfolio allows you to track over 10,000 cryptocurrencies across 500 exchanges. 
  • Cointracking– Cointracking is another outstanding crypto portfolio tracker with automation features. The platform allows you to track over 8000 crypto coins over 70 exchanges with real-time coin prices. Outstanding features of the platform include trade imports, tax declaration, and coin charts & trends.  

Final Word – 8 Must-Have Tools for Trading Cryptocurrency

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Cryptocurrency trading is a lucrative business and can create a fortune if correctly done. Crypto tools for trading cryptocurrency come in handy to assist investors in making profitable investment decisions and reduce the risk associated with crypto trading. The best crypto trading tools will make your trading seamless and comfortable plus assures you of constant profits. 

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