Crypto traders use various tools to navigate Web3. From tracking market data and token transfers to interacting with decentralized finance (DeFi) and filing taxes on digital assets, these tools make entering the digital assets world much simpler for anyone interested in doing so.
Coinbase is an established exchange that offers wallet services, portfolio monitoring tools, and an innovative learning program that lets users earn crypto while learning about new coins. Other tools available to Coinbase traders are Blockfolio and Messari.
Wallets
A wallet is a secure storage place for crypto assets, like bitcoin. Depending on its form (software wallet on computer or phone, hardware device like Trezor or Ledger etc), a good crypto wallet should provide protection from hackers while being user-friendly; top quality crypto wallets may even offer enhanced security features like hierarchical deterministic addresses and multi-sig verification to keep your assets safe.
Custodial wallets hosted by third-parties may also provide an easy and secure solution. Although easier than other forms of wallets to use, hackers could potentially compromise these types of accounts more easily than with other options.
As soon as you create a cryptocurrency wallet, it is wise to write down and store a recovery phrase (usually 12- or 24-word combinations) somewhere secure if you should lose your wallet and need to retrieve tokens from it. Furthermore, be sure to record a seed phrase. There are steel tools designed specifically to do this.
Analytical tools
Crypto analytics tools help you make more informed decisions by providing useful data and insights. They’re great for anticipating market trends, organizing trading strategies, calculating taxes, optimizing investments opportunities and saving you money by reducing fees or improving security – but these tools do have their limitations: for instance they may not detect market manipulation techniques as effectively.
Staying abreast of cryptocurrency news can help ensure the maximum efficiency of your crypto analytics tools. Top cryptocurrency news websites provide timely information about regulatory changes, technological advancements and project developments as well as free indicators and analyses such as those provided by IntoTheBlock which provides bullish/bearish signals based on on-chain and exchange data; Gunbot provides a drag-and-drop visual editor to build trading bots with extensive parameters and indicators; while DefiLlama specializes in decentralized finance by offering information about various DeFi networks/protocols that provide timely data updates.
Tax tools
Taxes are never fun, but when it comes to crypto transactions they can become particularly complicated. Luckily there are tools available that can help keep track of and simplify this process for you – such as tax software that automatically imports data from cryptocurrency exchanges into reports for you – not to mention aiding with complex tax regulations that might otherwise become an impediment.
Some of the leading crypto tax tools are designed to support multiple platforms and wallets, providing coverage of all your transactions. Others offer specific uses like tax-loss harvesting – which reduces taxable income by selling assets that have decreased in value – or tax loss harvesting which helps users sell off assets for profit once their value drops below what was once expected.
A quality crypto tax tool should easily integrate with various exchanges, wallets, and DeFi protocols while offering accurate transaction reporting. Furthermore, it should allow for direct export to TurboTax, H&R Block or TaxAct as well as support international tax laws as well as features like smart transfer matching that save time.
Calendars
A crypto calendar is an invaluable resource that will keep you abreast of the latest happenings in the cryptocurrency space. These platforms generally display events scheduled to occur, including upgrades and development progress on different blockchains and projects.
These tools also typically feature an ICO calendar, an invaluable resource for anyone interested in investing in new cryptocurrencies. An ICO calendar enables investors to monitor upcoming token sales and connect with project teams; some even offer predictions as to how these events could influence price movements.
Some of these tools also provide more advanced analysis platforms, like Nansen. Other analytical tools, like DEXTools, allow advanced users to examine specific smart contracts using SQL queries and compile this information in dashboards – perfect for beginners and newcomers alike! In many cases these tools are free, making them an excellent option for both newcomers and beginners.
