It is time to purchase shock absorbers for the bumpy ride ahead in crypto. Presently, cryptocurrencies have taken over the financial world by storm. Young and highly experienced traders continue to engage in crypto trading. According to CoinMarketCap, there are more than 7,000 listed cryptocurrencies.
Crypto trading is highly volatile, leading to some traders making high profits while others lose their money. One should be on the winning side; the only way to become victorious is to conduct thorough research. Making the correct choice highly determines if one makes profits or losses.
Trading tools offer traders the required knowledge for making well-versed decisions on investment. Any serious investor must read this article to have a proper understanding of investing in crypto.
Best Crypto Trading Tools 2023
Exchanges
Crypto exchanges play a major role in trading. The exchange used can either sink investors or make them stay ahead. Successful traders conduct proper research on the best exchange to use. Here are some of the best exchanges.
Binance
Currently, Binance has the highest number of users in the world of crypto. The platform is highly reliable, has the best team of experts, its record of accomplishment is clean, and its liquidity is undisputed. Large amounts of money pass through Binance in a single day. Other exchanges include BitMEX recommended for experienced traders because of the high risks required. Coinbase Pro also is a trusted exchange.
Decentralized exchange
Traders have an opportunity to trade currencies without an intermediary. Using a decentralized exchange (DEX) is advantageous because users do not make any deposits to the exchange. Each user has a secure wallet to store funds. Some challenges include; some DEXs are not user-friendly and attracting low liquidity. Some of the Best DEXs in the Market include:
IDEX
Combines centralized and decentralized exchange features, thus providing high liquidity for users to trade. It helps users to switch between centralized and decentralized exchanges. Users have the opportunity of managing their wallets.
UniSwap
It enables users to swap between BTC and XRP or ETH.
Charting Tools
The essence of a charting tool is to enable a trader to visualize the market through trend lines and indicators. Proper practice using trade indicators and trends in the market helps improve one’s technical analysis. Proper utilization of charting tools can enable an investor to win big. Some of the charting tools include:
Cryptowat.ch
The Cryptowat.ch tool enables the crypto trader to keep checks on the market. It is a free service and enables the users to chart across multiple coins because it provides more than ten charts in just one view.
TradingView
TradingView is highly sophisticated because it provides more technical indicators than other tools. It offers live trades for crypto and stocks. TradingView contains free and premium subscriptions that most experienced traders use.
Network Statistics
There is plenty of information on the internet relating to cryptocurrencies. Some of the information may be misleading or other information may appear negative. The best way for a trader to establish the truth about cryptocurrencies is by checking the data individually. Some of the important tools for providing information include:
CryptoMiso
It provides network statistics for the available coins in the market. Any project that does not show progress is dead.
BitcoinVisuals
BitcoinVisuals provides statistics on Bitcoin-related modules, including hash rate and other technical aspects.
Trading Platforms
The introduction of trading platforms into the crypto market has elevated trading a notch higher. The platforms enable a trader to access many exchanges just from one platform. The work becomes less tedious for the trader because it becomes easy to monitor the market. Here are some of the popular trading platforms:
Tradedash
Tradedash is among the secure platforms because it is a desktop app. Users’ private keys and data is stored on the individual’s desktop, thus adding another security layer. Tradedash gives the user an opportunity to use either Binance or Bittrex, some of the best and most reliable exchanges in the world.
Coinigy
Coinigy came into the market in 2014 and has gained huge traction among traders. It gives support to more than 45 exchanges. Coinigy provides support to a large number of exchanges compared to other platforms, thus giving it an upper hand in the market. The platform provides historical data that is helpful to developers in creating trading strategies.
Wallets
The literal meaning of the word wallet applies to the crypto market. It is used to store funds. Wallets take the role of a bank, and their safety is crucial. Wallets must be safe from hackers or other infiltration because funds will be lost once a hacker accesses the wallet. Best wallets also need a good user interface to prevent users from sending money to the wrong recipients. Some best wallets include:
Metamask
It is better than all other Ethereum wallets because it’s easily accessible through web-based browsers like Chrome. Metamask makes it easy for users to send Ether and ERC-20 tokens across the internet to dApps.
Mycelium
It is a mobile-based wallet and very easy to use. Mycelium is the best wallet for holding Bitcoin. Recording and securing the seed phrase is highly crucial.
Crypto Tax Tools
Paying tax can become a tedious activity for crypto traders. Getting the right tool to calculate taxes correctly is essential. Some of the tools include:
ZenLedger
ZenLedger helps simplify the work of calculating taxes. A trader can use ZenLedger crypto tax software to calculate taxes automatically.
Research Reports
Reports may seem bulky and tedious to read, but they are crucial. They provide traders with past, present, and future predictions of the markets. Crypto Research Report provides traders with thorough and detailed quarterly reports. The drafters of the report conduct statistical analysis, fundamental analysis, and interviews to get the right and credible information to publish.
Conclusion
The year 2022 has been chaotic in the crypto market. The world witnessed the fall of LUNA in May 2022 and now the collapse of FTX, one of the largest exchanges originating from the USA. In 2023, every crypto investor must be equipped with all the above-analyzed tools to escape any eventualities that may arise in the crypto world.