Every savvy crypto trader keeps a toolset to improve their results. Just like a construction worker needs the best tools to get the job done, crypto traders can improve their results using the best possible tools for the task at hand. To a new trader, it may seem like you jump into the market and hope for the best. However, experienced traders leverage a handful of advanced tools to better their chances. Here are the top 10 crypto trading tools you need to know to succeed.
Hardware Wallet
On the top of the list is a reliable hardware wallet from a reputable manufacturer. Hardware wallets aren’t new but many traders still don’t own one. These devices cost around $100 and they can protect millions of crypto from theft. They accomplish this task by creating an air gap between your crypto and the internet.
The advantage of this setup is that your crypto is protected from online threats. Additionally, these devices use a hardware button to approve transactions. This structure is ideal because even when connected to the internet, there is no way for a hacker to press a physical button.
Hardware wallets come in a variety of shapes and sizes. The most popular are the Ledger and Nano brands. The main thing to consider is that for the cost, every trader needs to hold one of these devices to store their assets. Also, never buy a used wallet or one from a third-party provider as there have been reports of people selling rigged wallets where the previous owner had already obtained the passphrase.
Market Data Aggregator
Every trader needs to monitor market data. Market data includes vital statistics on the industry including what projects are on the move. Keeping an overview of the market can be a time-consuming process for traders. Given the ever-expanding scope of the market, this task has become virtually impossible on a large scale.
Leveraging market data tools such as Coinmarketcap can provide real-time access to market statistics. These systems streamline the monitoring of specific sectors or the industry as a whole. These tools make it easy to see past information for the market or single tokens, such as market cap, trading volume, and other vital stats.
There are paid and free Market Data Aggregator options available to traders today. The most popular are free and offer an excellent selection of features. Those who need even more insight can venture into the many pay-for-use market data systems available today. Market data can be combined with charting tools to improve your final results.
News Aggregator
Another tool that every trader needs is an effective news aggregator. The rise of social media has made assets hyper-sensitive to the news in a way that was not possible years earlier. Today’s market hinges on bad or good news. Even made-up stories can influence the market.
The best news aggregators will draw from a variety of noteworthy sources. These systems leverage reputable news sources and gather the info in an easy-to-see location. The best part of news aggregators is that you can set them to focus on a specific project. This approach means that whenever any new updates come to the market, you are the first to know.
You can find many free news aggregators and there are even wallets with these services built into their platform. When used in conjunction with market data tools, you can gain valuable insight into how news affects the market. The main thing to remember is to focus on projects with longevity so that you have more confidence in their long-term value.
Portfolio Tracking Software
Portfolio trackers are a great addition to any trader’s arsenal. Portfolio trackers make it easy to manage all of your assets from a single interface. The best portfolio trackers can even integrate into your exchanges and conduct trades via API protocols. For traders who want to hold multiple assets across different exchanges, portfolio tracking software is a must.
Another great use for portfolio tracking software that is often overlooked is potential portfolios. Users can leverage a portfolio tracking protocol to create a possible portfolio. This strategy enables you to see how your mock portfolio would have performed. This strategy is great for comparing different assets.
For example, you can put value in 6 different coins in your mock portfolio. Wait a month and see what projects have seen the most progress. Using the mock portfolio makes it easy to see how you would have performed. It’s easy to see what projects have momentum and what is sitting stagnant without spending any funding.
Portfolio trackers have come a long way and the best option can connect to your other smart items to keep you updated. Smartwatches make it easy to never be more than a click away from your portfolio.
A Solid CEX
Centralized Exchanges are still a crucial part of the market. These large platforms were first to offer regulated crypto-to-fiat conversion tools to the public. The centralized nature of these platforms differs from the decentralized nature of the market but it does bring some advantages.
CEXs are the most familiar to traders. They use order books and charting tools like a stock trading app. As such, they have a very minimal learning curve for those who already trade other assets. Even new users will find that the CEX trading experience is smoother than most DEXs.
Another reason why CEXs are a valuable part of the market is that many offer insured and regulated options. CEXs are so big that they can’t avoid the regulatory spotlight. Consequently, many large CEXs have the approval and blessing from regulators. Many options even offer FDIC-insured fiat accounts and other regulatory guarantees.
A Non-Custodial DEX
CEXs are helpful but when it comes to trading in a p2p manner and security, every trader needs a reliable DEX. DEXs are like CEXs but they eliminate the centralization. They operate as pure code which makes them more resilient to censorship. It also makes them open to global users.
DEXs provide a high level of privacy. In many instances, these networks won’t require any personal information. You connect a network-approved wallet and the features of the market are open to you. This strategy is vital to the growth of the DeFi market as it enables the platform to provide services to a global audience.
Notably, today’s most advanced DEXs such as the META EXCHANGE offer similar services and trading experience to CEXs. You can leverage advanced trading and charting tools. There are even hybrid exchanges that offer both DEX and CEX services to users. The main thing to consider is that there are certain scenarios where DEXs are superior such as openness and token selection.
Charting Tools
No one can predict the market movements with 100% accuracy. However, reports have shown that traders who understand and use charting tools achieve higher ROIs. There is a good reason for their success. Charting tools enable users to catch trends earlier and see patterns.
There are a lot of charting tools that traders can leverage. Each tool helps a trader identify minuscule market movements and broader actions such as volatility. This data can then be put together with information ascertained from other tools to gain a better overview of the project’s momentum.
Charting tools have remained the same from the stock market until recently. The introduction of AI is sure to make it easier for more traders to use these tools. The introduction of charting tools to DEXs has also helped some platforms gain a competitive edge in the market. DEXs like the META EXCHANGE combine the best aspects of CEXs and DEXs to provide more flexibility.
Market Calendar
A market calendar helps you to keep track of noteworthy events in the industry. These tools are ideal to keep a watch on things such as halvings, hard forks, upgrades, airdrops, and new releases. Using a market calendar can ensure that you don’t miss any of these events and you can plan accordingly for each one.
Market calendars can be set up to monitor the entire market or individual projects. A prime example of using a market calendar wisely would be all of the traders that tracked Ethereum’s upgrade using these tools. They could monitor key actions such as the opening of staking nodes and more.
You can also use market calendars to help you keep track of your trading activities. Some traders will hold an asset for a preset time before trading it. These traders use market calendars with their schedules embedded to ensure everything occurs when needed. Add a digital assistant or smartwatch to stay connected to your calendar more efficiently.
Blockchain Explorer
Blockchain explorers are a crucial tool that every trader needs to be familiar with how to operate. These free blockchain examination tools enable you to see vital details about a network. You can see items like the balance of a wallet or transaction data. You can view every transaction on an open blockchain in real time which makes the tool essential.
Another key reason why you need a blockchain explorer is to confirm token contracts. The rise of ERC-20 tokens and other layered assets in conjunction with DEXs means that you need to be more vigilant before entering a project. It’s a common scam to name a project the same as another more popular one and then entice traders to join.
A blockchain explorer enables you to easily confirm the smart contract address is what it says. You can also see things like your token transfer and other vital actions of the network. Never skip this step if you are trading on a DEX because they don’t have quality control measures and if you send your tokens to a scammer, there are no refunds.
Rebalancing Tool
Rebalancing tools are a great way to automate your portfolio. These protocols will automatically adjust your portfolio to present standards every day. These rebalances can be set up to hold the most productive projects or other vital statistics. Rebalancing tools are flexible and can be set up to include specific sectors such as only the top ten smart contract-capable networks.
Trading Bot
Trading bots can help you to improve your ROIs in many different ways. For one, they remove human emotion from the trading process. Bots don’t care about FOMO or FUD, they simply conduct trades based on preset criteria. They don’t need to sleep and the best ones will ensure you never miss the trading opportunities you seek.
There are a lot of different trading bots in operations today. These options range from free to subscription and revenue-based models. Aside from your budget, you need to consider what exchanges and assets the bot can handle. You want to find a bot that is flexible and approved to work with the exchanges you already trust.
Safehaven Tokens (Bonus)
Safehaven tokens are a must for any trader who seeks to avoid volatility and store value. Safehaven tokens are similar to stablecoins in that they leverage reserves to decouple from market covolatility. They differ from their predecessors in that they also integrate community protections in the form of smart contracts.
The most popular safehaven token in operation today is the META 1 Coin. This advanced fourth gen blockchain asset leverages a basket of gold-related assets to provide a long-term store of value characteristics. It also has protections that prevent whale manipulation and centralization.
META 1 Coin is the main utility token of the larger METANOMICs DeFi ecosystem, This platform offers users a variety of ways to generate wealth by leveraging low-risk passive income streams. The network also introduces the Onramper portal to provide direct fiat to crypto conversions which streamlines onboarding,
Top Crypto Trading Tools You Need Today.
Stop wasting time and effort. Like a person attempting to dig a hole with their hands, you aren’t going to get the same results as someone with a shovel, or a bulldozer. Learn the tools on this list and your success rate will increase exponentially. The main thing to consider is that every tool you master improves your trading capabilities and understanding.