The Ultimate Guide to Cryptocurrency Trading Tools

Amidst the growth of crypto trading, developers have developed several tools, including portfolio managers, wallets, market watchers, portfolio balances, crypto news aggregators, and exchanges, to make trading specific and profitable, minimizing risk. 

The right set of crypto trading tools and a proper mindset is crucial to successful cryptocurrency trading. 

Cryptocurrency Exchanges

• Why You Need Them: To buy or trade cryptocurrencies 

Cryptocurrency exchanges offer a gateway to the cryptocurrency world by allowing investors to trade cryptocurrencies for other assets, such as other digital currencies and conventional fiat money. Crypto exchanges may accept various payment forms, including wire transfers, credit cards, or other safe and convenient forms.

The crypto space is no short of exchanges that take different forms. Some functions, like market makers, take the bid-ask spreads as a commission for the exchange service offered. In contrast, others act as matching platforms (i.e., linking buyers and sellers) and charge a transaction fee. Some cryptocurrency exchanges also integrate traditional assets such as stocks and fiat currencies.

When choosing an ideal cryptocurrency exchange, you should consider security, transaction fees, liquidity, or exchange volume. The best crypto exchanges you should consider are: 

Coinbase

Founded in 2012, Coinbase is one of the most trusted and reliable cryptocurrency exchanges. The exchange allows crypto purchases using fiat currencies, and it’s beginner-friendly. Moreover, coinbase exchange has never been hacked and licensed by over 40 regulatory bodies to operate in the US and 50+ countries worldwide. Besides, users’ funds (up to $250 000) are insured by FDIC. 

Coinbase also packs many features, including an instant exchange feature with no extra fees, the Coinbase debit card, and support for crypto withdrawals to users’ wallets. The exchange also offers an in-built crypto wallet, which is very safe since 99% of users’ assets are stored offline cold storage. The remaining 1% of the assets in the online hot wallet are insured from hacking.

If you’re looking for an easy way of buying, selling, and storing cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and DeFi tokens, Coinbase is among the top options.  

Binance

Binance is another outstanding crypto exchange with the highest trading volume in the crypto space. Furthermore, the exchange supports over 250 cryptocurrencies with a meager exchange fee of about 0.1% and a 50% trading discount when using its native coin, i.e., Binance Coin (BNB). In addition, Binance boasts security features such as two-factor authentication (2FA) and CryptoCurrency Security Standard (CCSS). 

The exchange is relatively fast, supporting up to 1.4 million transactions per second. Furthermore, Binance accepts crypto-fiat purchases meaning that users can purchase crypto using multiple currencies, including EUR, USD, and GBP, with no limitations. Binance is excellent for beginners and advanced users as it offers two options, i.e., Basic and Advanced. Easy-to-use interface, low trading fees, and extensively supported digital currencies make Binance among the top crypto exchanges. 

Trading Platforms

• Why You Need Them: To access multiple crypto exchanges on a single platform 

Sometimes, you may want to use multiple exchanges to trade your crypto portfolio due to different listed prices, or you prefer to trade a particular coin on a specific exchange. Unfortunately, logging in and out of exchanges can be quite cumbersome.

Trading platforms streamline your crypto trading experience by providing a single platform to access all your exchanges and execute trades. This allows you to waste no time executing trades when opportunities arise and allow you to monitor the market closely. Suitable trading platforms you may consider are: 

Coinigy

Launched in 2014, Coinigy is among the leading trading platforms in the crypto space. The platform supports over 45 exchanges and features customizable trading charts and constructive customer support. It also features historical crypto market data, which can be purchased and used to analyze the market. 

Coinigy is available on the web and as an app (Android and IOS). It allows you to manage your multiple exchange accounts from a single platform. The platform also features portfolio monitoring tools and real-time crypto market insights to take your trading game to the next level. It offers a 30-day free trial, after which memberships are charged from $ 18.66 to $99.99/month.  

Altrady

Altrady is also another excellent trading platform that supports over twenty crypto exchanges. In addition, the platform packs plenty of features, including a user-friendly interface, personalized layouts & moveable widgets, easy navigation, multiple market tabs, high-definition interactive charting, automatic portfolio manager, crypto base scanner, real-time crypto alerts, and a break-even calculator, among other features.   

Charting Tools

• Why You Need Them: For technical analysis 

Charting tools allow crypto traders to check indicators and draw trend lines to determine their direction. Using charting tools, you can conduct technical analysis (TA) to gauge a downtrend or an uptrend. Essential charting tools in the crypto space include:

TradingView

TradingView is one of the best charting tools in the crypto and stocks market. The tool is quite popular with crypto traders. It offers different forms of charts, including line charts and candlestick patterns. It consists of a comprehensive list of technical indicators to enable traders to analyze the market and develop a profitable trading strategy. TradingView also integrates a unique chat function to allow traders to share trading strategies with their counterparts. Some features of the tool are free, while others are unlocked to premium users. 

 Cryptowat.ch

Cryptowat.ch is another great charting tool in the crypto space. Kraken Exchange owns the tool and offers over ten charts in a single view. The tool also has an in-built trading platform, but users must pay a subscription fee. The charts can be customized and come with several drawing tools. 

Cryptocurrency Market Stats Tools

• Why You Need It: To check out crucial statistics and reference points 

Cryptocurrency market data, such as total supply, circulating supply, market capitalization, etc., are vital in the crypto markets. Market data providers allow traders to analyze a coin and determine its suitability for investments. Best crypto market data include: 

CoinMarketCap

CoinMarketCap is a comprehensive crypto market data platform providing a comprehensive data set including trading volume, official website, cryptocurrency token prices, market cap, 24-hour and seven days trading volume, the supply of coins, etc. It also features individual charts for each coin and an API if an individual wants to integrate crypto market data into their interfaces.

CryptoCompare

CryptoCompare is another excellent crypto market data platform that offers reliable data, including prices, volume, and coin supply. The platform also consists of tools that allow users to track their portfolios. Plus, there are new articles on the development of different coins. 

Cryptocurrency News Aggregator

• Why You Need Them: Real-time updates regarding crypto markets. 

Fundamental analysis is crucial in crypto to develop a profitable trading strategy. Crypto news, both legitimate and rumors or fake news, affect coin prices somehow. Tons of crypto-related news emerge every hour, making it difficult to keep up with the market’s happenings. Crypto news aggregator tools come in handy to keep you posted on the latest crypto news from a single platform. The best news aggregator tools/sites are: 

CryptoPanic

CryptoPanic is a free, comprehensive crypto-news aggregator with multiple news sources, including social media news, online news articles, polls, etc. Users can customize which news they would like to be updated on. Additionally, it features a price bar where users get the latest coin price updates. 

CoinSpectator

CryptoSpectator is very similar to CryptoPanic but comes with more features. For instance, it allows users to vote on how the market will behave regarding the news. This lets users get a rough idea of whether the market will be bullish or bearish. 

Crypto Events Calendar

• Why You Need Them: Be aware of upcoming events influencing a coin’s price.

Calendar tools keep you updated on the latest developments of a particular coin and the upcoming events, such as Halving in the case of Bitcoin. For example, suppose you want to know what’s happening to a particular coin. You can find it all under a single platform, whether coin burns, forks, exchange delisting, or crypto-related conferences and events. Suitable crypto events calendars include: 

CoinMarketCal

CoinMarketCal gives you a bird’s eye view of the upcoming crypto events on all major coins, including beta, alpha release, Mainnet or testnet launches, airdrops, and new features or listings. Additionally, users can set up their events. However, if you add your event, it won’t be approved by the site’s admin but will be passed to the community to vote on whether legitimate or fake.

Coindar

Coindar also lets you view all upcoming events in the crypto space under a simple, sleek interface. Users can post and notify you of upcoming events via Telegram and Twitter. Choose between dark mode and light mode interface options. 

Trading Bots

• Why You Need Them: To execute trades automatically when certain conditions are met. 

Trading bots have gained widespread usage in the crypto space among both experienced and beginner traders. Beginners employ trading bots to automate their crypto trade, while expert traders use the tool to execute trades at particular conditions in a market that runs 24/7. You can easily rake in lucrative profits by employing a reliable trading bot you sleep using the right trade. The crypto market is awash with hundreds of trading bots, and you need to choose one that complements your trading strategy. Here are some trading bots you should try out. 

Cryptohopper

Cryptohopper is among the best trading bots available today, with many handy features enabling users to execute their trading strategies in a bullish and bearish market. In addition to automatic trading features, some outstanding features on the platform include mirror trading, arbitrage trading, backtesting, and more. Furthermore, users can customize their trading strategies by accessing several technical tools available on the platform.    

HaasOnline

HaasOnline is among the best crypto trading bots with outstanding features, including a sleek user interface, arbitrage trading, and access to hundreds of technical indicators. This tool offers top-notch automated trading solutions that allow users to profit to a great extent. 

Crypto Tax Tools

• Why You Need Them: To generate and file crypto tax reports.  

Several countries have already implemented cryptocurrency taxations creating the need for tax management tools. Determining cryptocurrency taxes can be challenging because regulators have yet to implement precise, multi-coin guidelines. Crypto tax software can undertake all your crypto tax calculations on your behalf as you focus on other investment tasks. Filing faulty tax returns is considered tax evasion, a severe offense leading to unwarranted fines, penalties, or even imprisonment. Ensure you use the below tools to calculate and manage your crypto taxes. Note that most crypto tax tools have tiered pricing costing up to $600 annually. 

Zenledger

Zenledger is a top-of-the-class cryptocurrency tax tool that automatically generates ready-to-file crypto tax information adhering to IRS standards. The tool features an API, enabling you to import all your historical data from several leading crypto exchanges to obtain an accurate tax report. The software also reports on capital gains, profit-and-loss, and crypto donations you might have made. As a result, Zenledger will enable you to come up with an accurate ready-to-file tax report with little complexity involved. 

CryptoTrader.Tax

CryptoTrader.Tax is another handy crypto taxation software that generates crypto tax reports directly uploaded to TurboTax for seamless filing. It also generates IRS Form 8949 cryptocurrency income and loss, allowing users to calculate gain/loss exposure easily. 

Cryptocurrency Portfolio Trackers

• Why You Need Them: To Keep Track of Your Portfolio 

As a trader, you should always be aware of your portfolio’s performance, and there’s no better tool to help you than portfolio trackers. Cryptocurrencies are very volatile; therefore, it’s hard to manually keep track of each coin you’re investing in by updating prices in an Excel spreadsheet. Portfolio trackers allow you to see the value of your assets in real-time. Given that these tools are vulnerable to hackers, choosing a portfolio tracker with outstanding security features and other handy features ideal for your crypto trading needs is crucial. 

Delta

Delta is an excellent crypto portfolio tracker that effectively tracks all your coins in over 300 crypto exchanges and wallets. In addition, you can access the liver prices of all cryptocurrencies and other investment assets such as ETFs, stocks, indices, mutual funds, forex, bonds, options, and futures on the tracking app. The app is available for free download on Apple Store and Android Store.  

Portfolio Rebalancing Tools

• Why You Need Them: Automatically buying and selling coins based on portfolio weight. 

Portfolio rebalancing is a necessary crypto trading strategy if you’re looking to minimize risk and maintain a continuous profit stream. Portfolio rebalancing tools automatically buy and sell assets in your portfolio to maintain the set portfolio allocation. For instance, if you want Bitcoin always to be worth 50% of your portfolio, but Bitcoin’s price rises, increasing its worth to 70% of the portfolio, rebalancing tools will automatically sell out some BTC to bring it back to 50%-the vice versa is also true.  

Portfolio rebalancing tools come in handy to hedge your assets, ensuring you continually generate profit. The best rebalancing tools are: 

3Commas

3Commas is not free but has some excellent features for your crypto rebalancing. The tool is compatible with crypto exchanges such as Bittrex, Poloniex, Binance, and many others via a single interface. Apart from rebalancing, 3Commas has smart trading features such as a crypto trading bot, trailing stop-loss, trailing take-profit, and social trading to enable users to grow their portfolios.   

DeFi Risk Assessment Tools

• Why You Need Them: To determine whether a crypto project is legit or an exit scam in the DeFi space.

Investing in new cryptocurrency projects is risky, considering numerous projects were exit scams to con unsuspecting investors. Risk assessment tools analyze various aspects of a crypto project to determine whether a project is legit or a scam. Therefore, before investing in any crypto project, whether a wallet, an exchange, or an ICO, you’ll want to use these tools to check their suitability. 

Unicrypt

Unicrypt is a blockchain ecosystem and liquidity-locking mechanism that seeks to build investors’ confidence by enabling them to establish whether a project is a viable investment or a scam. Unicrypt was developed to work in line with liquidity pools on Uniswap and rewards farmers for providing liquidity to Uniswap using UNCL and UNCX tokens. In addition, the platform features various protocols designed to build trust in the crypto sector. 

In essence, Unicrypt seeks to reduce the risk associated with Uniswap purchases through its unique liquidity-locking mechanism. By leveraging the platform’s locking mechanism and advanced smart contracts, investors are guaranteed that new projects cannot pull off an exit scam. Similarly, new crypto projects build confidence in investors by locking their liquidity for an agreed time before the platform officially goes live. As such, the platform drastically reduces the risk of exit scams in the crypto space. 

DEXTools

DEXTools allows investors to explore and analyze DeFi projects before investing easily. The platform features insights, unique functions, data analytics, and insights to help traders gauge DeFi platforms. The platform’s unique features include UniSwap pool explorer, UniSwap pair explorer, BigSwap explorer, and a multi-swap feature. There is also a wallet info tool to enable investors to search and compare various wallets. In addition, the platform enables investors to explore various projects, check out their history, and determine a market dump’s possibilities on the safe investing side. 

Conclusion