Brokers and exchanges provide cryptocurrency tools that ease navigation and trading on the part of crypto traders. Choosing a broker or exchange should be dependent on a platform’s ability to provide reliable tools. The availability of crypto tools will definitely help the trader narrow down the options and realize returns based on the accuracy of the analysis conducted by the tools. In this article, 7 important tools are discussed. These include charts, crypto wallets, crypto news summary, market watcher, trading bots, integration features between various exchanges, and manager for one’s profile and portfolio.
By definition, a chart is a graphical representation of a set of data. In this regard, crypto charts represent information about the available cryptocurrencies and their trends over a specified period. Crypto charts mainly show the variation in prices for all the crypto depending on the time the trader chooses. This could be a day, week, month, or year.
Brokers and exchanges avail this information to aid in the analysis since a chart enables the trader to identify and infer the short-, medium-, and long-term trends. With this knowledge in mind, the trader can then make a decision on whether to buy or sell the crypto. It is worth noting that some brokers and exchanges go the extra mile by providing the cryptocurrency prices in the trader’s local currency. As such, the best crypto charts are those which simplify the price information and enable the trader to input the period they intend to focus on, say, a week, month, or year.
The crypto charts should also be seamless in their operations. This implies that they should not lag or buffer with every new command. They should also be accurate. Renown brokers and exchanges such as IG, eToro, Plus500, and AvaTrade have some of the best crypto charts.
Crypto News Summary Tab
Exchanges and brokers contain a section denoted by a ‘News’ tab where a trader can view the latest cryptocurrency news. The news relates to aspects and occurrences that are likely to impact the blockchain and crypto world. For instance, the crypto news today highlights how the Coronavirus will affect blockchain in China.
A crypto wallet is an application or software that accesses a particular crypto blockchain network and enables a trader to receive, store, or send digital currencies known as cryptocurrencies. Exchanges such as Coinbase have in-built wallets. Different configurations of crypto wallets exist. Some are only meant for one crypto while others can be used with multiple coins. A crypto wallet functions by storing a public address (similar to an account number) for one or more cryptocurrencies.
The address is specific to a given crypto. As such, a wallet that deals with multiple coins stores multiple addresses. It is this address that enables the sending of crypto funds to a trader’s account after purchasing it. Access to the funds requires that the trader has a private key that the wallet also generates and stores.
For security purposes, it is important to store private keys and cryptocurrencies in a hardware crypto wallet which is essentially a physical storage device. The fact that this device is offline ensures that it cannot be hacked or accessed by an unauthorized party.
Additionally, a hardware wallet is suitable for a trader who is not conversant with the coding jargon associated with digital wallets. The hardware wallet simplifies the verification process but also guarantees security. Some of the best hardware wallets include Ledger, Trezor, Ledger Nano S, and Ledger Nano X, among others. On the other hand, some of the best digital crypto wallets include Coinbase, Electrum, and Robinhood, among others.W
Market watch is a feature where the brokers and exchanges highlight the new trends with regards to the cryptocurrency trading world. It includes opinions on what crypto traders should buy or sell and is based on extensive research.
Portfolio And Profile Management Tool
The existence of thousands of cryptocurrencies and multiple exchanges implies that keeping track of transactions may be hard for a trader who has invested in numerous currencies by using many exchanges. The trader may be unable to track the gains and losses. As such, tools exist which enable such traders to manage the digital assets in their names. They are essentially the manager for one’s profile and portfolio. Examples of portfolio management tools include Shrimpy which is available on every exchange.
Some crypto trading bots also function as portfolio managers. They connect multiple exchanges and conduct trading on the owner’s behalf based on instructions or strategies that the trader has chosen. In this regard, bots allow for automated trading and use a mix of artificial intelligence to ensure the trader benefits.
Integration Between Various Exchanges
A trader may use numerous exchanges to buy or sell digital assets. The various exchange, cognizant of this fact, enable access to these various exchanges. This is particularly important since it means that the traders do not have to independently operate the individual exchanges each of which has its own interface. With the integration feature, the trader is able to access multiple exchanges using a single interface. The interconnectivity is based on features on the back-end of each of the exchanges. For instance, LCX Terminal is one such product and it integrates some of the largest and best cryptocurrency exchanges such as Binance, Bitfinex, OKEX, Coinbase, and Bittrex, among others.
The cryptocurrency trading tools mentioned above are available online although hardware wallets are primarily physical devices. The tools help traders make informed decisions by availing as much information to aid in analysis. They also provide the latest news and use intelligent features to simplify trading. As such, they make trading easier and seamless. Their inclusion in brokerage and exchange platforms increase their usability and ranking.