The Best Crypto Trading Tools Before Your First Trade

16 Jan 2024 by Maham Zahid 4 min read

Taking up on your cryptocurrency trading journey? Whether you're a seasoned pro or a beginner venturing into digital asset waters, the right crypto trading tools can make all the difference. Staying ahead requires a combination of expertise and reliable tools.

For seasoned professionals, advanced trading platforms equipped with sophisticated charting tools, real-time market data, and algorithmic trading features are essential. Beginners, on the other hand, benefit from user-friendly interfaces, educational resources, and platforms with low entry barriers.

Regardless of your experience level, keeping a close eye on market trends, utilizing risk management strategies, and staying informed about regulatory developments are crucial. As the crypto landscape evolves, having access to the right tools empowers traders to navigate the complexities and capitalise on opportunities in this ever-changing market.

Let’s explore the top crypto trading tools to elevate your trading experience in this guide.

TABLE OF CONTENT

1. Cryptocurrency Wallets as Crypto Trading Tools

2. Trading Platforms

3. Technical Analysis Tools

4. Crypto News Aggregators

5. Portfolio Trackers

6. Crypto Screener Tools

7. Crypto Exchanges with Margin Trading

8. Crypto Tax Tools

9. Automated Trading Bots

10. Best Crypto ETFs

11. The Best Crypto Trading Tools - Final Thoughts

12. Crypto Trading Tools - FAQs

Cryptocurrency Wallets as Crypto Trading Tools

Your foray into crypto trading begins with a secure wallet. These digital tools enable you to store, send, and receive your digital assets. Opt for hot wallets (connected to the internet) or cold wallets (offline) based on your preferences for security and accessibility.

Hot wallets, like those provided by exchanges, offer convenience but may be more susceptible to hacking. Cold wallets, on the other hand, provide enhanced security by keeping your private keys offline.

Trading Platforms

Executing seamless trades requires a reliable trading platform. Platforms like Binance, Coinbase, and Kraken offer user-friendly interfaces and a plethora of trading pairs. Choose a platform aligned with your trading goals, providing real-time market data and robust security features.

Ensure the platform supports the cryptocurrencies you intend to trade and offers advanced features like limit orders and margin trading if you wish to explore more complex trading strategies. Read about 6 underrated tools for maximising crypto gains.

Technical Analysis Tools

Empower yourself with technical analysis tools to decode market trends and make informed decisions. Platforms like TradingView and Coinigy offer advanced charting features for analysing price movements, identifying patterns, and setting effective entry and exit points.

Dive into candlestick patterns, moving averages, and other technical indicators to gain insights into market sentiment. The ability to conduct in-depth technical analysis will undoubtedly enhance your trading skills and decision-making.

Crypto News Aggregators

The dynamic crypto market requires constant vigilance. Stay ahead with crypto news aggregators like CoinDesk, CoinTelegraph, and NewsBTC. These platforms offer real-time news, market analysis, and insights crucial for shaping your trading decisions.

Staying informed about regulatory developments, partnerships, and technological advancements can give you a competitive edge in the volatile crypto space.

Portfolio Trackers

Diversifying your crypto portfolio necessitates efficient tracking. Portfolio trackers like Delta, Blockfolio, and CoinStats help monitor investments, track profits and losses, and provide alerts on market movements, all within a convenient interface.

Set up your portfolio tracker to include all your assets, and leverage the reporting tools to gain insights into your overall investment performance. This not only facilitates better decision-making but also helps you stay disciplined in managing your diverse portfolio.

Crypto Screener Tools

Navigating the expansive crypto market demands efficient filtering. Crypto screener tools like CoinMarketCap and CryptoSlate assist in sorting through thousands of cryptocurrencies based on specific criteria, simplifying the hunt for potential investments.

Set your filters based on factors such as market capitalization, trading volume, and price change to identify projects that align with your investment strategy. These crypto trading tools act as a compass, guiding you through the vast sea of cryptocurrencies to find the hidden gems.

Crypto Exchanges with Margin Trading

For the daring trader, margin trading can boost potential returns. Exchanges like BitMEX and Bybit offer margin trading options, allowing you to borrow funds and increase your position size. However, exercise caution, as margin trading involves higher risks.

Familiarise yourself with the mechanics of margin trading, set clear risk management strategies, and start with small positions to gain experience. The allure of amplified returns should always be balanced with a prudent approach to risk.

While advanced crypto trading platforms provide crypto trading tools for margin trading, it's crucial to use them judiciously to navigate the complexities of this strategy.

Crypto Tax Tools

With crypto's mainstream adoption, tax regulations come into play. Crypto tax tools like CoinTracker and TokenTax simplify tracking transactions, calculating gains or losses, and generating tax reports, ensuring compliance with tax authorities.

Keep a detailed record of all your crypto transactions, including trades, purchases, and transfers between wallets. Automated tax tools can save you time and ensure accuracy in reporting, helping you navigate the often complex and evolving landscape of cryptocurrency taxation.

Automated Trading Bots

Want to trade without constantly monitoring the market? Consider automated trading bots like HaasOnline or 3Commas. These bots execute trades based on predefined strategies, enabling you to trade effortlessly around the clock.

Choose a bot that aligns with your trading style, set clear parameters for risk management, and monitor its performance regularly. Automated trading can be a valuable tool, especially for those with busy schedules, allowing you to capitalise on market opportunities without being tethered to your screen.

Best Crypto ETFs

Diversification is key, and crypto ETFs offer a convenient route. Invest in a basket of cryptocurrencies without managing individual assets. Popular crypto ETFs include Grayscale Bitcoin Trust (GBTC) and Bitwise 10 Crypto Index Fund.

ETFs provide exposure to multiple cryptocurrencies, reducing the risk associated with individual assets. Before investing, research the composition and strategy of the ETF to ensure it aligns with your investment objectives.

Keep in mind that while ETFs offer diversification, they also carry their own set of risks, so thorough due diligence is essential.

The Best Crypto Trading Tools - Final Thoughts

Provided with the right crypto trading tools, your trading journey becomes significantly smoother. From secure wallets to advanced technical analysis tools and diversified investment options like crypto ETFs, each tool serves a unique purpose in enhancing your overall trading experience.

Stay informed, conduct thorough research, and enjoy the dynamic world of cryptocurrency trading. Happy trading!

The Best Crypto Trading Tools - FAQs

What is the safest type of cryptocurrency wallet for beginners?

For beginners, cold wallets (offline) are generally considered safer due to their enhanced security by keeping private keys offline. Hardware wallets, such as Ledger or Trezor, are popular choices for those prioritizing security.

Which crypto exchange is best for beginners?

User-friendly platforms like Coinbase, Binance, and Kraken are excellent choices for beginners. These exchanges offer intuitive interfaces, a variety of trading pairs, and robust security features.

How do I start with margin trading in cryptocurrency?

Before venturing into margin trading, educate yourself on its mechanics and risks. Exchanges like BitMEX and Bybit provide margin trading options; however, it's crucial to start with small positions, set clear risk management strategies, and gradually gain experience.

Do I need to pay taxes on my cryptocurrency investments?

Yes, in many jurisdictions, cryptocurrencies are subject to taxation. Utilize crypto tax tools such as CoinTracker or TokenTax to simplify tracking transactions, calculating gains or losses, and generating tax reports to ensure compliance with tax authorities.

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