When cryptocurrency was introduced in the industry, so did the financial tools for analyzing it. The tools and resources were limited to other mainstream financial markets; however, digital currency investors can now access them due to growth in popularity. Cryptocurrency tools are available for every active user in the cryptocurrency markets. Some of these tools are only available in the crypto market because of how different the cryptocurrencies are. In this post, we discuss the types of cryptocurrency tools.
Types of Cryptocurrency Tools
The various crypto tools for traders are;
1. Cryptocurrency Wallets
After buying digital currency, your digital assets need to be stored in a digital currency wallet for easy access. The wallets can either be hardware or software. They don’t keep actual currency but private information about the cryptocurrency, ensuring it’s safe and secure for the user. A cryptocurrency wallet should be easily accessible and secure.
Compromising on one quality may negatively affect you, and the most secure wallets are hard to access, and those you can reach easily have compromised security. Hardware wallets are ideal for security purposes but are not suitable for active users since accessing them is not easy.
2. Real-Time News
Trading of cryptocurrencies takes place all the time; it never stops. This means keeping up with the trading global news and updates is crucial. Real-time news helps you have a few advantages over the others and prevents a good trade from going bad.
It also has experts available on this platform to provide you with information or insight concerning new stories other than the usual reporting. The cryptocurrency social media platforms like Twitter also provide new information and updates constantly about the currencies.
3. Market Stats Tools
Cryptocurrencies have statistics and points of reference that you have to consider for the currency itself and the whole financial market. They include;
- Circulating Supplymeaning the cryptocurrency circulating in the market currently
- Market Capitalizationwhich is determined by the value of supply, time, and price.
- Max Supplyis the maximum cryptocurrency amount that can be created
- 24-hour Trading Volumereferring to the number of coins exchanged in the last 24hours.
As much as these tools are beneficial to you, it’s good to conduct further research on the market statistics.
4. Tax Management Software
The taxation of digital assets by the government has proved uncertain for most regulators. The tax management software calculates the taxes for you, preventing fines and penalties that may arise. Active traders pay more for trade analysis since they have additional trades than the less active traders.
5. Cover Trader
All cryptocurrency analysis and trading across the market are done by this tool. It allows multiple exchanges where users run their orders at the best prices. Cover Trader helps you understand how prices move on the chart and view historical orders on the site. Users can trade various currencies like Bitcoin, Litecoin, and Ethereum on multiple exchanges.
Trading is not always easy and requires a lot of effort. However, cryptocurrency tools and resources are available to ease the process, provide insight, and help the trading experience. Using them will put you a notch higher than other traders in the industry.