Trading cryptocurrencies requires a combination of several factors to achieve success. The industry is inherently fraught with the downsides of volatility, hacks, and the proliferation of sham projects.
Oftentimes, cryptocurrency enthusiasts might find the ecosystem daunting because of the complexity of new projects. Merely choosing the right exchange to trade or use custodial wallets is not enough to guarantee a successful stint in the space. Certain advanced tools and tricks are required to consistently make a profit in the markets and this article will delve into them.
Here are the tools and techniques that will take your crypto journey to the next level. Winners and losers are separated by their usage of these tools and without further ado, let’s get started.
1. Charting Tools
Every serious crypto trader worth his onions is armed with charting tools to understand the stories behind the charts. A charting tool allows traders to draw trend lines to get the most out of their indicators and is an important weapon to have in your arsenal.
Several charting tools are in the market with different levels of functionalities. At its core, a decent charting tool should be easy to use and allow for exchange integration. TradingView ticks all the boxes and is the most popular charting tool in the space and is packed with a ton of features. However, the platform is stratified amongst users with a free account and those with a paid account with some features not available for free accounts.
Other decent charting tools in the market include Coinigy, CryptoWat.ch, Shrimpy and Blockfolio. These tools allow instant alerts on selected cryptocurrencies with some allowing users to trade directly from the charts.
2. Market Data
A charting tool will only take you far but crypto enthusiasts take things up a notch by utilizing market data tools. Market data tools provide rare insights into market trends in the space like the circulating supply of an asset, all-time highs, all-time lows, and daily transaction volumes among others.
A market data tool is important because it sheds light on important statistics on crypto assets that are not easily accessible. There are several platforms that offer these services and crypto traders looking to take their trading to the next level will need to pay attention to the user interface and accuracy of data provided on the platform.
The leading platforms include CoinMarketCap, OnchainFX, and CryptoCompare. These platforms aggregate market data and make them available to users at the push of a few buttons. CoinMarketCap has gone the extra mile to include reports of breaking news on the platform and the option for users to share their opinion about a token.
3. Use of Crypto Calendar
Crypto moves fast and it might be hard to keep up with the latest events in the space like airdrops, swaps, forks or block halvings. Depending on the news for information is great but even better is the use of a trusted calendar to notify you of the major happenings that are scheduled to occur.
This knowledge is important for cryptocurrency traders because landmark events play a key role in asset prices in the market. Keeping an eye on the big events in the space would be a game-changer for crypto traders no matter their skill or experience level.
Leading crypto calendars in the space include CoinMarketCaland Coindar. The interfaces on these platforms are some of the sleekest, allowing users to glance through upcoming cryptocurrency events in no time and track other lesser-known events in the space.
4. Portfolio Trackers
Most cryptocurrency traders employ the use of several cryptocurrency exchanges to get perks, cheaper fees or just to put eggs in different baskets. In this situation, portfolio trackers would come in handy and have the benefit of allowing cryptocurrency traders to keep track of their assets across multiple platforms on one platform.
CoinStats is the leading crypto portfolio tracker with compatibility with over 400 exchanges and over 10,000 cryptocurrencies. Military-grade encryption adds a layer of security for investors and features that set it apart from the rest of the pack. Other trackers include Blockfolio, Cointracking and Blox amongst others.
5. Trading Bots
The use of trading bots has gained traction in cryptocurrencies over the last few years. Trading bots allow users to set parameters for the automatic trading of cryptocurrencies. When programmed correctly, the bots trade for you based on the pre-programmed strategy without requiring additional efforts from you.
Users have access to several bots in the market to choose from including HaasOnline, Gekko, Pionex, TradeSanta, Trality, and Zignaly amongst others. A major factor for users to pay attention to is to select a bot that allows for the widest breadth of customization and allows integration of social trading.
Other tools and techniques required for crypto enthusiasts to improve their skills include the use of crypto tax tools, portfolio rebalancing tools, use of block explorer, and news aggregator sites.
Advanced techniques for crypto enthusiasts to make include the incorporation of day trading, range trading, scalping, arbitrage, and high-frequency trading as part of their repertoire.
With these tools, you’ll be on your way to becoming a bonafide cryptocurrency professional. Crypto trackers to keep an eye on your multiple holdings, trading bots to do your bidding, crypto calendars to track big events and charting tools are important tools to have in your crypto shed.
Seize the moment and take your crypto trading to the next level! Cheers!