With the 2017 surge in Bitcoin value, cryptocurrencies became the latest hype and attracted a greater following than ever. More and more crypto-themed blogs, forums and online communities started popping up, and the information on this subject became widespread.
However, with this came a lot of misinformation as well as scams, so a beginner trader can easily find one’s self trapped on a path which leads to frustration and potential financial loss.
Luckily for us, there is a way out of it.
In today’s article, we are going to present the best cryptocurrency trading tools which will enable you to trade successfully and safely. These tools are the second most important thing after
getting adequately educated on the topic, so make sure to read the following passages carefully.
1. Choose the Best Exchanges
As you probably know, there are many different exchanges operating today, and they are not all made equal. Many of them differ regarding security, speed, supported payments, and user-friendliness, among other things, which are all factors that need to be taken into serious consideration.
It’s good to know that some exchanges are better for a particular currency than others, so, for example, Coinbase is preferable when buying Bitcoin.
Of course, keep in mind that not even the best platforms are perfect and there can always be unexpected problems. Hacks might happen regardless of how good a security system an exchange has, or your account could get blocked for unknown reasons.
Another issue that most do not know about is that most of these companies do not provide you with insurance for your money. This means that after trading, and hopefully making a profit, it might not be optimal to leave all of your money lying in the exchange.
These downsides are not put here to discourage you from trading but solely to inform you about their existence. Fortunately, there are solutions, and they will be discussed in following sections.
2. Charting Tools
Charting tools are used to analyze trades, but this is not their only role. They are also helpful when tracking trades and placing orders, as well as predicting the behavior of currency and deciding whether to buy, sell, or hold.
There are plenty of such tools available today, so we have selected the ones we deem best.
Read about them below.
Information and analysis services:
Cryptowatch is a free one, and Kraken exchange owns it. It provides its users with very detailed, comprehensive cryptocurrency charts which can help one predict the future movement of a currency.
Coinmarketcap.com and Bitcoin.info are probably the most well-known sources of information when it comes to cryptocurrencies. They are packed with charts, market data and several tools which can be used to make trading easier. Some of these tools can tell you about blockchain size, mining revenues, trade volumes, Segwit adoption, and so on.
Bitcoinwisdom.com is a site which focuses mainly on Bitcoin and offers some dynamic and customizable graphs. The charts come from several major exchanges and from them you can get information about anything from fiat to various cryptocurrencies.
Cryptotrader is an automated trading solution which works with Bitcoin and altcoins. It is cloud-based and offers marketplace strategies, automated trading bots, and will send you SMS or emails if you wish so. A Cryptotrader Android app is also available.
Tradingview is a charting tool which offers three indicators per chart in cases of free accounts. Paid plans cost from $9.95 to $39.95 a month, and they include more indicators as well as the faster data flow. You can use it to get real-time information from different exchanges and currencies and make comparisons between them.
One other paid service is Coinigy, and it can be of great help to newbie traders. It gives you access and insights to information from 45 exchanges. There are more 75 different indicators that you can use to make analyses as well as price alerts delivered via SMS or email.
Despite having all of these services at your disposal, be aware that technical analysis is anything but easy. To do it successfully, you will first need to learn about how to identify trends, what are support and resistance levels, the Dow theory and a lot of other methods. If you wish to trade long-term, make sure to educate yourself thoroughly beforehand.
It isn’t a secret that finding a quality trading community is probably the most important (and difficult) factor for inexperienced crypto enthusiasts. So how do you identify whether a community is good or not?
Well, first you need to get through the technical literature and learn the basics of trading and the ways that the market operates. With this information under your belt, it will be harder for more experienced traders to exploit you or to fall into traps of misinformation.
Also, talk to some fellow traders and see which forums or news sites worked for them and gave them some valuable or useful information. The kinds of materials that you can really benefit from are live market analyses, detailed market reports, or real-time trade alerts.
4. Offline Storage
As exchanges do not offer insurance in case of lost money, your safest bet is to go for offline storage. It enables you to keep all of your cryptocurrencies safe from hackers and other invaders. There are two main types of offline storage – hardware wallets and paper wallets, and now we’re going to break them down for you.
Hardware wallets (also known as “cold storage”) are devices which can store all your cryptocurrencies. They are connected to the computer via USB and besides storing, can also be used for trading and managing accounts. These wallets aren’t cheap by any means but are well their price.
The three most popular hardware wallets today are Trezor, Ledger Nano S, and KeepKey, so let’s take a closer look at them.
Trezor is the first of its kind, and SatoshiLabs made it. You can buy one for $99 or three for $276, and payments can be made in Bitcoin. It works by plugging it into your computer and manually pressing the two buttons on the device to confirm trading.
It has private keys which are stored offline. In case of it being stolen or lost, 9 digit pins or 24-word recovery keys can be used to recover your information.
Ledger Nano S is a competitor of the former and comes at a price of $65. It can work with Bitcoin, Litecoin, Ethereum, as well as seven other currencies. One can use it to send and receive payments as well as to create and run wallets. It is effortless to set it up on a desktop computer and can be used for online authentication.
KeepKey costs the same as Trezor, but it packs a bit more features than the latter. It supports Litecoin, DASH, Dogecoin, and some other altcoins. As far as security goes, you store your hardware-generated private key offline, along with number randomization and pin code. It has a physical button which needs to be pressed to confirm a transaction.
Paper wallet is absolutely the safest way to store your cryptocurrencies. It is a physical copy of private and public generated keys which you can then use to send or receive money. All of these codes are printed out in form of QR codes so that they can be scanned quickly.
We realize that this is a long article and that we’ve listed many items so far, but know that we’ve just barely scratched the surface. There are many, many more tools that do the same things, and it doesn’t mean that they are inferior to the ones we’ve presented to you today. The point is that if you find some other services which, for some reason, suit you more – go for them.
It would be a good idea to check their ratings and reputation prior because you want only top-notch, fully-functional and genuinely beneficial tools.
The Final Word
As we reach the end of this article, we would like to summarize by saying that being informed and staying updated are the things that need to be done before any important decision made in the cryptocurrency trading world. The market is robust, new and fairly unpredictable so if you think that you know something about it for sure – think again.
All of these tools can be of great help, but you need to get educated about this technology first. It will take time and effort, yes, but the fruits of your labor can be more than rewarding. Stay smart, persistent, and always keep up with the latest information.