https://micky.com.au/top-tools-that-can-enhance-your-crypto-trading/
Crypto trading has become one of the most popular endeavors in recent years. Many young traders are trying to catch big movements which the crypto market is offering on an almost a daily basis. Because of the attractiveness of crypto trading, it is important to use proper tools that can turbocharge your crypto trading profits. In this article, we are going to discuss several must-have crypto trading tools to always control what’s happening in the markets.
Tool for crypto fundamental news analysis
Several tools can be used to enhance trading accuracy. Fundamental and technical analysis are two types of analysis traders employ in order to trade crypto and other financial markets. Fundamentals help understand important macroeconomic news and events that can change prices of certain markets, including cryptos and technical analysis refers to analyzing historical data for predicting future prices. There are tools used in both fundamental and technical analysis. Fundamental analysis tools that are absolutely essential include a financial calendar that shows a schedule of all the upcoming macroeconomic news. This news can have a tremendous impact on the crypto assets prices and is therefore a must-track data. The financial or economic calendar makes it easy to track all important news that is going to affect crypto and other financial markets as all the news is shown in a visually appealing manner. Besides the economic calendar, there are also news aggregators that sum up all the important news around certain markets. This news aggregator together with the financial calendar will offer valuable help to all crypto traders.
Tools for crypto technical analysis
Knowing fundamentals are just one part of trading and more technical tools are required to use in trading. While few tools can be used to make sense of crypto markets fundamentals, the tools that offer technical assistance of some sort are abundant for crypto markets.
The trading platform is required to open and close positions or to buy and sell various instruments including cryptos. Good trading platforms come with inbuilt technical indicators that can be applied to the price of an asset to analyze its performance. Trading platforms come with charting software and offer visualization of the price data. Binance offers a pretty advanced trading environment with the ability to see price charts and even use indicators. But there are dedicated platforms like TradingView and MetaTrader 4 that offer much more functionality.
Trading bots enable traders to fully automate their trading. Because of this nature trading bots can be very helpful tools for outsourcing trading activities while maintaining an emotional balance, as the trading market is known to put traders under emotional stress. Many traders are trying to translate their trading strategies into trading bots to avoid overtrading and stress which are common among new traders especially.
Portfolio trackers are very helpful for crypto traders as they help to track all positions and crypto holdings across multiple exchanges and wallets. Whoever tries to have a wallet and hold multiple cryptos will understand how painful it is to track all your crypto assets and manage them in short periods to trade several exchanges at the same time.
Speaking about crypto wallets several types of crypto wallets can be used for trading and holding crypto assets. Two types of crypto wallets are called cold and hot wallets. Cold wallets are used to save digital assets offline to save them from hacking. Hot wallets like Metamask are used by crypto holders to hold, send and receive cryptos. It is not recommended to save crypto assets on an exchange as all exchanges have their wallet addresses and they are owners of these addresses, meaning they potentially have full access and control over client funds on these wallets. Using hot wallets to quickly transfer trade and receive back cryptos is the best way of operating as a crypto trader. The recent FTX scandal showed us how dangerous centralized exchanges could be for our digital assets. So, it is always a better idea to hold your cryptos on your decentralized wallets like MetaMask or use cold storage flash drives if you want to hold a considerable amount of money in digital assets.
Main points
- Since crypto trading is becoming popular, traders should employ proper tools to maximize their profitability and efficiency.
- Fundamental analysis tools such as economic calendars and news aggregators are essential for predicting future price volatility occurrences.
- Technical analysis tools such as trading platforms with built-in charting software can help traders analyze an asset’s performance.
- Trading bots help traders automate their trading activities.
- Portfolio trackers are helpful to monitor and track all assets with great comfort and simplicity.
- It is recommended to use hot wallets when dealing with central exchanges for trading activities to save yourself from FTX-like threats.
- Recent scandals involving FTX emphasize the importance of holding digital assets on decentralized wallets.