Cryptocurrency is a digital or virtual currency that operates with cryptography as a form of security and is designed to be used as a means of exchange. It uses a decentralized control system as opposed to centralized electronic money and central banking systems in operation in countries and regional organization. It is decentralized through distributed ledger technology, The Blockchain, that serves as the database of financial transaction. Examples of cryptocurrencies are: Bitcoin, Litecoin, Zcash, Dash, Ripple, Monero, among others.
The storage of cryptocurrencies unlike the central system of banking is done on the blockchain that is highly encrypted with cryptography. Blockchain database makes cryptocurrency data easy for backup on thousands of computer system all over the world. Information that is backed up is broken into pieces for storage in different locations, access to a fraction by a hacker will lead to futility, except access is gained to other data stored online. Because of this, data on the blockchain cannot be breached easily, except access is gained to all the storages it is kept at the same time which is technically impossible.
One of the most puzzling thing about cryptocurrency to beginners is the benefits of holding on to whole units or fractions of cryptocurrencies which can make them a fortune overnight. Cryptocurrency firstly, is a currency and a valid means of exchange (not yet everywhere), and to own it, you have to purchase cryptocurrencies such as bitcoin from a cryptocurrency exchange, such as Coinbase, Poloniex, CEX, Bitfinex, Binance, Local Bitcoins, among others. After the purchase of Bitcoin or Ether which are the majors, you can then trade them for other cryptocurrencies (altcoins).
Every cryptocurrency trader or intending crypto trader, and investors need some essential tool that makes analyzing price movements easy. Becoming successful in any profession requires the use of some necessary tools, in the same way, it applies to trade and investment in cryptocurrencies.
Below are the best five tools that will help make you a better trader.
Trading View
A cryptocurrency trading chart, tool, a forum, and a community that aids the act of trading and investing in cryptocurrency. It is focused on technical analysis using charts and permits users to share trading ideas. It is one of the most used platforms by traders because of the multiple features it has. The community members on the platform share ideas, providing detailed analysis and price predictions on different cryptocurrencies and cryptocurrency markets in general. Though other markets such as forex and stocks are discussed on the platform, however, cryptocurrency is discussed the most.
It is one of the best cryptocurrency trading tools because of the pool of knowledge you gain when you use it. Traders discuss trading ideas and share knowledge about the proper trade to dabble into. On it, qualitative trading ideas are shared between the members of the community. Another of the multiple advantages is the lessons on technical analysis. A newbie trader who does not know how to use technical analysis to trade learns from this platform; advanced traders are not left out either.
It helps traders learn about the most valuable investment to make at any given time. Using the tool is very simple, click here, and you’ll get all the necessary guideline and information needed.
Blockfolio App
This is a cryptocurrency value mobile monitoring application. Blockfolio is one of the best crypto portfolio management app that has over 3000 pairs listed. It’s handy for tracking the value and progress of different type of coins you choose to monitor, including Bitcoin, Ethereum, Litecoin, Ripple, and many more. The app gives a global trader coverage with over 100 exchanges, candlestick charts and the real-time order book for all cryptocurrencies. That is why it is a must-have for every trader or intending trader.
The application is of great use for investors who track the total value of their cryptocurrency assets, and also useful to watch the worth of coins/tokens at any given time. Blockfolio also notifies traders when a coin reaches a particular price, by just turning on the notification of a specific coin you are following, this helps to make better trading decisions.
Using Blockfolio to enhance your trading and your knowledge of the market is easy and essential. To use the app click here to download and install the application to your phone. Then set up the numbers of coins you want to monitor and continue to enjoy the unending benefits of the app.
CoinMarketCap
This is a cryptocurrency site and tool for obtaining an overview of the cryptocurrency market. On the site, all necessary information about the cryptocurrency market is provided, detailing information about all the coins. This tool is a very necessary tool for traders and investors because it provides information about the,
I. Market Capitalization, which indicates the number of total coin in circulation multiplied by the current price.
II. Price, providing information on each coin value to fiat currencies, such as US Dollars.
III. Volume, providing details of the volume of coins traded in a specified time frame.
IV. Supply, providing information on the numbers of a coin in circulation.
All these are displayed every minute of the day on the CoinMarketCap platform, and that is why it is mostly referred to as the most popular cryptocurrency site. Gaining adequate knowledge about the market capitalization, price, volume, and the supply enable a trader to understand the technical analysis of trading and equally the right time to trade. For every investors and trader to reap a great dividend from cryptocurrency market, there is a need to have the knowledge and the understanding of the information given by CoinMarketCap. Using the platform is very easy, click here to check the details of the coin you are trading.
CoinGecko
This is another special tool that is necessary for cryptocurrency traders or an investor. The site lists the top cryptocurrencies in the world and ranks them based on the five key elements which are; developer activity, community, liquidity, market capitalization and the public interest.
Coins are ranked based on the activity of developer on CoinGecko; this is done through public source code repositories. Knowing this information gives investors adequate knowledge to know projects that are in for long-term from those who have no intention of developing more than they already are. The knowledge of this to a trader or investor is very essential.
Community engagements is also a reliable metric for ranking of cryptocurrencies on the platform. Coins that receives the support of the community tends to bring a great yield on investment and equally has the tendency to appreciate.
The public interest public interest is also another factor for ranking. If the public is not interested in a particular coin, there is no way it will be a good pick for investment. This information provides a trader with a proper understanding of how to trade.
Coinigy
Here is another important tool for cryptocurrency traders. The site gives a digital view of the global cryptocurrency and the world financial market. Live prices are given from the most important cryptocurrency exchanges in the world. It combines information from 45 worldwide cryptocurrency exchanges.
Coingy offers 24/7 Exchange & Wallet Portfolio Monitoring, Price alerts of cryptocurrencies that can be delivered as SMS or email, a real-time API link to your trading account from over 45 exchanges. With this app, you get the latest charts and prices of cryptos and also trade at the perfect time, which offers two in one benefits. This why it is a must use for every cryptocurrency traders. Click here to visit the site.
Final Thoughts
Making proper decisions on cryptocurrency investment require the use of some important tools, and the best five tools to take most importantly for both beginners and experts are the ones listed above.
Using these tools as a trader and an investor gives you an edge in getting the latest information which provides you with a better view of the market. Knowledge is the key to business and development, equally is the opportunity of widening your horizon as a trader depends on the tools available at your disposal. No matter your present level, these platforms give you the unparalleled knowledge to grow and become an expert.
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