Ultimate Cryptocurrency Trading Tools

The cryptocurrency market rose from $193 billion in Q1 2020 to $668 billion in Q4 2020, with Bitcoin's market cap increasing by more than $300 billion. Overall, the crypto market capitalization rose by more than 3.3 times, suggesting that cryptocurrencies are becoming more common. Developers have created a variety of resources, such as fund managers, wallets, market watchers, portfolio balances, crypto news aggregators, and exchanges, to make crypto trading simple and efficient while mitigating danger.

To be effective in cryptocurrency trading, you must have the right set of crypto trading tools and a proper trading mentality. Here's a list of cryptocurrency trading instruments to consider in 2021 and beyond if you want to take your trading to the next stage.

Cryptocurrency Exchange

Cryptocurrency exchanges provide investors with a way to enter the cryptocurrency environment by enabling them to swap cryptocurrencies for other assets including other digital currencies and traditional fiat money. Wire transfers, credit cards, and other types of payment considered secure and convenient can be accepted by cryptocurrency exchanges. There are several different types of exchanges in the crypto world. Some act as market makers, taking the bid-ask spreads as a fee for the exchange service they provide. Others, on the other hand, operate as matching sites and charge a transaction fee. Traditional assets such as stocks and fiat currencies are also available on certain cryptocurrency exchanges.

Trading Platforms

You may want to trade your crypto portfolio on several exchanges at times, either because of different listed rates or because you choose to trade a certain coin on a specific exchange. It can be time-consuming to log in and out of exchanges. Trading platforms simplify your crypto trading experience by allowing you to access all of your exchanges and conduct trades from a single location. This helps you to execute trades quickly as opportunities arise and keep a close eye on the market.

Charting Tools

Crypto traders may use charting software to analyse indicators and draw trend lines to assess their course. Technical analysis (TA) can be used to determine whether a market is in a downtrend or uptrend using charting methods.

Cryptocurrency Market Stat Tools

Complete supply, circulating supply, market capitalization, and other cryptocurrency market data are critical in the crypto markets. Traders can quickly evaluate a coin and decide if it is appropriate for investment using market data providers.

Cryptocurrency News Aggregator

In the crypto space, fundamental analysis is critical for developing a successful trading strategy. Coin prices are affected in any way by cryptocurrency news, both real and speculation or false news. Every hour, a slew of crypto-related news emerges, making it impossible to keep up with the market's movements. Crypto news aggregator tools are useful for keeping up to date on the latest crypto news from a single source.

Crypto Events Calendar

Calendar tools keep you up to date on the latest trends in a specific coin as well as future events like Bitcoin's halving. You will find everything you need to know about a specific coin, including coin burns, forks, exchange delistings, and crypto-related conferences and events, all in one place.

Trading Bots

Trading bots have become common among both experienced and novice traders in the crypto room. Expert traders use trading bots to execute trades at specific conditions in a market that operates 24 hours a day, seven days a week. Beginners use trading bots to automate their crypto trades, while experts use the tool to execute trades at specific conditions in a market that operates 24 hours a day, seven days a week. You can comfortably rake in lucrative profits even while you sleep if you use the right trading strategy and a dependable trading bot. Hundreds of trading bots are available on the crypto market, and you should choose one that complements your trading strategy.

Crypto Tax Tools

Several countries have already enacted cryptocurrency taxes, necessitating the creation of tax management software. Since regulators have yet to enforce accurate, multi-coin rules, manually calculating cryptocurrency taxes can be difficult. When you concentrate on other investment activities, crypto tax software will handle all of your crypto tax calculations. Tax evasion is characterised as the filing of false tax returns, which is a serious offence punishable by unjustified fines, penalties, and even imprisonment. Use the tools mentioned below to measure and manage your crypto taxes. It's worth mentioning that most crypto tax tools have a tiered pricing structure that can cost up to $600 per year.

Cryptocurrency Portfolio Trackers

As an investor, you should always be aware of the results of your portfolio, and portfolio trackers are the best tool for this. Since cryptocurrencies are so unpredictable, manually keeping track of and coin you're investing in by updating prices in an Excel spreadsheet is difficult. You can use portfolio trackers to see the value of your assets in real time. Given the vulnerability of these tools to hackers, it's critical to choose a portfolio tracker with excellent security features and other useful features that are suitable for your crypto trading needs.

Portfolio Rebalancing Tools

If you want to minimise risk and maintain a consistent profit stream, portfolio rebalancing is a must-have crypto trading strategy. Portfolio rebalancing tools buy and sell assets in your portfolio automatically to retain the set allocation. For eg, if you want Bitcoin to only be worth 50% of your portfolio, but its price increases, making it worth 70%, rebalancing tools would automatically sell some BTC to get it back to 50%, and vice versa.

Portfolio rebalancing strategies are useful for hedging your investments and ensuring that you continue to make money.

DeFi Risk Assessment Tool

Investing in new cryptocurrency ventures is dangerous, as there have been exit scams designed to defraud naive investors. Risk evaluation tools look at a variety of facets of a crypto project to see if it's a fraud or not. As a result, you can use these resources to assess the suitability of investing in any crypto project, whether it's a wallet, an exchange, or an ICO.

Final Thoughts

Being well-informed of important news events and catching trends before they break can mean the difference between a win and a loss when it comes to crypto trading. Using the tools mentioned above will give you a distinct advantage over other traders, ensuring your success in a highly competitive market. There are obviously other resources in the room, but the ones mentioned here are the most reliable and leading in their respective fields. To take your cryptocurrency trading to the next level, try out these tools right now.