If you’re getting serious about cryptocurrency trading, it’s time to consider adding some tools to your arsenal. These tools can help you track what’s happening in the market and stay ahead of any changes that could cost (or earn) you money.
Most avid cryptocurrency investors have an idea of what they need from a trading platform. Here are some of the critical things to look for when vetting cryptocurrency trading tools.
The volume of a cryptocurrency refers to how much of a particular coin has been traded within a specified period. Many traders prefer volume as their key metric when making decisions regarding their investments. This indicator is often evaluated in correlation with the price.
As this indicator is so important, having a tool that clearly showcases volume changes and monitoring is a must. Use a tool such as Cryptolume for a visual depiction of volume fluctuations so that you can make data-driven decisions about your investments. Visual graphs are invaluable for showcasing trends in a clear, well-defined manner.
The cryptocurrency market moves fast. If you hesitate, you might miss the opportunity of a lifetime. On the other hand, not knowing what’s happening at a given moment may leave you stuck in a bad situation. For these reasons, it’s imperative that any tool you use has real-time data.
What does real-time mean in the cryptocurrency market? Considering this currency is digital in nature, there should be little to no delay in receiving information. Real-time data, as it pertains to cryptocurrency, means being updated the minute something happens, not days after the fact.
If trading cryptocurrency isn’t your full-time job (and even if it is), you likely won’t be watching your screen every moment of every day — that’s why having a monitoring tool is so beneficial.
Look for a platform that has both preset and custom alert options to keep you notified of any changes. Even the basics such as volume and RSI increases or decreases will help you stay informed. It’s also beneficial to have custom alert options if you’re considering any specific currencies or if a new coin becomes available.
Robust Analytics Tools
You can never have too much information when trading currencies. Finding a tool that captures and displays that information in a variety of formats is a must. While having real-time data is important, it’s also integral to look at the bigger picture.
In addition to the exchange volume analysis tools, look for other capabilities like sentiment analysis, project development analysis, and event analysis. It’s also beneficial to look for a platform that showcases this information in a visual format to make it simpler to manipulate and digest.
Platform versatility is a must when looking for a cryptocurrency trading tool. You should be able to get the same functionality whether you’re working from your phone on the subway or on your laptop in an office.
If anything in investing and trading is certain, it’s that you can expect a lot of uncertainty. You may not know when an opportunity will strike, and you don’t want to miss out because you’ve stepped away to grab a sandwich.
Cloud-based software is ideal for crypto trading. After all, it’s a digital world.
The world of crypto trading has evolved tremendously over the past decade. New coins are entering the playing field on a regular basis, with classics like the Bitcoin apparently sticking around for the long haul. Some traders prefer conventional currencies, while others like to try their hand at something new.
Whichever camp you fall into, it’s essential to have a tool that includes a large variety of coins. You never know when you might decide to try something else and create a new strategy.
Using the right cryptocurrency trading tools can help you make informed decisions about your investments with confidence.