Six Essential Tools for Crypto Traders and Investors

Explore the six must-have tools for traders and investors in this highly-volatile cryptocurrency market.

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  • In this highly volatile crypto market, having the right tools at hand becomes crucial for success in trading, gaining something from the market’s movement. 
  • The six essential tools for crypto traders include cryptocurrency data aggregators, portfolio trackers, news aggregators, security tools, trading bots, and crypto exchanges. 
  • Remember, these tools are meant to support trading and investment activities, but it is crucial to conduct your own research and exercise caution when dealing with cryptocurrencies.

When speaking about the cryptocurrency market, no one can deny that it is highly volatile. It operates 24 hours a day, within 12 months of a year. Thus, staying informed about price movements and market developments is crucial. 

In this highly volatile crypto market, having the right tools at hand becomes crucial for success in trading, gaining something from the market’s movement. 

Admitting that we are just creatures that make mistakes, miss opportunities, sleep, and stay away from our personal computers sometimes, trading tools that offer real-time notifications and alerts play a pivotal role in managing risk and optimizing cryptocurrency portfolios. 

With this in mind, here are some of the essential tools for crypto traders and investors prepared by BitPinas:

Cryptocurrency Data Aggregators

Price analysis and charting tools are essential for technical analysis in cryptocurrency trading. Having a data aggregator, like CoinGecko and CoinMarketCap, provides traders with detailed price charts, indicators, and overlays to identify trends, support and resistance levels, and patterns. 

Cryptocurrency data aggregators also typically provide charting tools, which assist traders in determining optimal entry and exit points for their trades. By analyzing historical price patterns, support and resistance levels, and indicators, traders can identify potential buying or selling opportunities. 

Portfolio Trackers 

Portfolio trackers, like CoinStats and Delta, enable traders and investors to monitor their cryptocurrency holdings in real-time as they aggregate data from multiple exchanges and wallets, providing a comprehensive overview of asset allocation, profit/loss calculations, and historical performance. 

Portfolio trackers also assist traders in managing asset diversification. By visualizing the allocation of funds across different cryptocurrencies, traders can identify imbalances or overexposure to specific assets. Remember, maintaining a well-diversified portfolio can help mitigate risk and maximize potential returns.

News Aggregators

One of the things that heavily influences the crypto market is the hype that surrounds it, including web2 personalities and companies that enter the crypto industry, or even a regulation that has been imposed in a country. 

Thus, keeping up with the latest news and developments in the cryptocurrency industry is vital for successful trading. News aggregators, like CryptoPanic and CoinSpectator, are digital platforms that gather news articles, press releases, and market updates from various sources and present them in a consolidated format. 

By subscribing to a news aggregator, traders can understand and analyze the forces driving the market, such as market sentiment, investor sentiment, technological advancements, or government regulations. These insights help them make informed decisions, anticipate market movements, and adjust their strategies accordingly.

Security Tools

Security is ‌among the most important things to have in the crypto space. Despite having a strong community, we cannot deny the fact that there are still bad players in the industry, stealing funds that others have worked hard for.

Security tools provide essential protection for crypto traders by safeguarding their digital assets, securing their accounts and wallets, encrypting communication channels, protecting against phishing and scams, facilitating secure backup and recovery, and ensuring network and device security. 

By having these tools, traders will surely minimize the risk of security breaches and unauthorized access.

Just last May, BitPinas published an article that discussed the six essential security tips to protect your crypto assets. To learn more about these security tips, read here

Trading Bots

Trading bots, like 3Commas and HaasOnline, are automated software programs that execute trades based on predefined strategies. They can help traders take advantage of market opportunities and reduce the need for manual monitoring. 

Some even recommend using trading bots when trading in the crypto market, as they help increase trading efficiency and profitability, eliminating the possibility of human errors and improving trading speed.

Lastly, since emotions can often weaken a trader’s judgment and lead to impulsive trading decisions, trading bots that operate based on preprogrammed rules and parameters really help, removing the influence of emotions from the trading process. 

Crypto Exchanges 

Crypto exchanges, like Binance and Coinbase, are websites or applications that allow traders to buy, sell, and trade cryptocurrencies.

Normally, crypto exchanges also offer the other tools discussed above, making the trader’s life easier. But one of the good things about exchanges, even CEXs, is they typically provide user support and customer service to address queries, resolve issues, and offer assistance to traders. 

There are also crypto exchanges that adhere to specific legal and compliance requirements, promoting a safer trading environment, like PDAX and in the Philippines. Regulatory oversight ensures that exchanges operate transparently, adhere to anti-money laundering (AML) and know-your-customer (KYC) regulations, and protect the interests of traders. 

Closing Thoughts

In the fast-paced and highly volatile world of cryptocurrency trading, having the right tools can make all the difference between success and failure. 

By leveraging these tools effectively, traders can navigate the complexities of the cryptocurrency market, make informed decisions, and optimize their trading strategies. 

However, it should be noted that while tools can provide valuable support, they should be used in conjunction with an understanding of the underlying principles of trading and a sound risk management approach. 

Remember, these tools are meant to support trading and investment activities, but it is crucial to conduct your own research and exercise caution when dealing with cryptocurrencies.

For you, what is the best trading tool that could help you improve your trading ability? 

This article is published on BitPinas: 6 Essential Tools for Crypto Traders and Investors

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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