Cryptocurrency markets are a minefield of misinformation, pump, and dump trading schemes, lack of adequate information about projects and even some cryptocurrency projects that do not have any value at all. This adds the pain to the vast amount of hacking and scams. So at the center of any serious trading is the need for having adequate, factual and relevant information whether you are talking about predictions about price movements or just what is going on in the markets at the moment. Such information will prove helpful in determining what, when, where and how to sell or buy and from who.
There are various tools that can help you with that. These tools can also help you stay organized in your quest to maximize cryptocurrency profits.
Here are the main tools to have and use.
1. Trading accounts on the best exchanges
The choice of cryptocurrency exchange matters in terms of protecting your funds and even for purposes of profitability. We have discussed the various cryptocurrency exchanges here and here including their advantages and you should consider these lists before starting.
Needless to say, some exchanges are best for trading particular cryptocurrencies than others. Coinbase, for instance, is more suitable for buying Bitcoin.
There is also the ability to buy using checking accounts and transferring to and from the exchange. At the same time, exchanges such as Bitfinex are nice for shorting Bitcoins just as Poloniex. Poloniex offers margin trading and shorting on many of the most popular altcoins.
Nevertheless, most traders never want to trust exchanges to be their banks due to the many hacks or claimed hacks altogether. The second point about this is that most of them do not offer insurance for the money for you. Even as you place trades on cryptocurrencies and make money on crypto exchanges, it may not be much helpful to leave a majority of cryptocurrencies on exchanges.
2. Charting tools and algorithms
Traders use charting and order execution tools to analyze trades. There are many. These help you to not only place orders and track your trades in a single location, but you can also use them to predict future prices to decide whether to hold, sell or buy.
For those looking for free crypto technical analysis and charting tools, you can consider Cryptotrader and Cryptowatch. With Cryptowatch, which is owned by Kraken exchange and founded in 2014, you get a comprehensive chart of the currencies and the chart has a wealth of information.
You can also attempt their charts to predict future price movement for the cryptocurrencies. Cryptotrader is a cloud-based automated trading solution that supports Bitcoin and other cryptocurrencies. They provide automated trading bots in the scalable cloud, help with strategy in the marketplace, and also provide emails and SMS notifications. They also have an android app.
Tradingview is a common charting and TA tool. You get access to three indicators per chart on a free account. Paid plans (from $9.95 to $39.95 per month) offer access to faster data flow and more indicators. It supports different cryptocurrency exchanges so you can gain real-time data and information from a variety of sources as desired.
Coinigy is also a paid service crypto trading tool for novice users. With the subscription, you access the global digital economy across over 45 exchanges to get valuable insights into the market. It provides more than 75 technical indicators as well as SMS and email price alerts.
Blockchain.info and Coinmarketcap.com also provide a number of tools, market data, and statistics that you can use to trade. These include market capitalization for various digital currencies, blockchain size, update on Segwit adoption, amount of currencies in circulation, mining revenues, trade volumes and price graphs and charts (weekly, monthly, daily and yearly or all-time). This also includes website widgets, social media feeds and API tickers you can use to track prices and other data.
Investing.com was founded in 2007 and is a great tool for real-time quotes and streaming charts, up-to-date financial news, technical analysis, tools & calculators. Coinmarketcap also provides cryptocurrency updates, road-maps, and other changes.
In that case, mobile charts and alerts can be very helpful in that regard as you will watch data and info on the go. You can do that while in a flight, in a meeting, on a beach or in a hotel. That said, you can have apps such as ZeroBlock to watch price trends and charts and even set alerts for cryptocurrencies. You can try Blockfolio for all cryptocurrencies, Cryptonator for all cryptos, zTrader, and Crypto Tracker supports over 2000 cryptocurrencies all in one app and is good for Apple users.
Technical analysis is not easy: you will need to familiarize with things like the Dow Theory, how to identify trends, moving averages, support and resistance levels and role of volumes and key considerations in gauging market sentiments. This takes us to the need for a basic understanding and education about these issues as you get more into trading for the long term.
3. Offline and cold storages
Cold storage or offline storage is the safest place to store your digital assets. You can use offline computer storage and hardware such as Trezor and Ledger Nano S hardware wallet or others that we talked about crypto hardware wallets in this article.
4. Trading communities and forums
Without forgetting misinformation and lack of information or adequate information, lack of training and education on crypto trading and how the market works is a reason for huge loses by many people trading cryptocurrencies. More skilled and experienced traders are always on the watch for where they can get profits, to the disadvantage of new entrants if they have no idea about how markets work.
Besides, training helps put in place a good trading strategy in a way that you can determine when to enter, exit and successfully manage a trade. After learning the basics, it is time to join the specific cryptocurrency charts, subscribe to many news sites and forums, and communities.
Some of these forums host novice traders and people who do live market analysis, write in-depth crypto market reports and do real-time trade alerts and all these can turn very helpful in your crypto trading journeys.
Finally, you can decide to take short courses about crypto trading and they are many starting with these beginner courses for crypto investment here.