Are You an Investor in Crypto Assets? The right tools will allow you to efficiently manage and grow your portfolio of cryptocurrencies, from tracking prices to creating tax reports on investments.
The best crypto tools help traders gain an in-depth knowledge of the market. They provide useful data regarding price movement and pinpoint new opportunities. Furthermore, some provide alerts regarding coin launches or presales.
Trading platforms
Trading platforms provide traders with an online portal for buying and selling cryptocurrency assets. They typically feature user-friendly interfaces with integration into blockchain wallets for added security, support for various short and long-term trading strategies as well as leverage trading and negative balance protection capabilities.
Traders have two platforms from which they can choose: brokers and exchanges. Both offer real-time market data and price quotes, though exchanges allow buyers and sellers to trade directly while brokers serve as intermediaries in this type of trading.
Choose a crypto trading platform based on your investment goals. Some platforms cater more toward professional investors; others are suitable for novice traders. If you are day trading, consider platforms with quick-trade capabilities and low commission fees as well as notifications and mobile optimized charts; this should give you enough options to set notifications or analyze mobile charts without delay. A good system should also contain trading indicators and technical analysis tools.
Hardware wallets
Hardware wallets provide your crypto assets with extra protection by securely storing the private keys offline, in so-called cold storage. Hardware wallets also resist online hacking attempts and offer one of the safest means of cryptocurrency storage available. They’re highly prized among security-conscious individuals as well as those looking to self-custody their crypto assets.
When purchasing a crypto wallet, search for one with robust features and user-friendly interfaces. Furthermore, make sure it supports all the digital assets that you plan to trade before checking its physical stability to withstand wear and tear.
As part of your wallet setup process, you will receive either a 12- or 24-word seed phrase that corresponds with your private key. It is crucial that this recovery seed be stored safely – record its words on a backup sheet and store it somewhere safe; do not store them electronically as this could be compromised by hackers.
Research tools
Crypto research tools can be found online in abundance. These tools aim to assist researchers with organizing and analyzing data, collaborating with peers, presenting findings clearly, as well as offering advanced features that enable users to make more informed investment decisions.
Beyond providing market data, the top crypto research tools also track on-chain transactions to provide valuable insight. This data is essential when making informed investments in cryptocurrency assets. Furthermore, these tools keep you abreast of new coin launches and presales.
At the forefront of crypto research are trading charts that display prices and trading volume of different cryptocurrencies. Trading charts allow researchers to easily spot reversal patterns, identify support and resistance levels and monitor social media trends which help explain price movements. Other tools include on-chain analytics such as Glassnode.
Tax software
If you trade crypto assets, filing taxes correctly is vitally important. While this process can often be time consuming and require extensive research, tax software can make this much simpler by helping navigate the complexities of the crypto industry and double-check your data for errors before providing all necessary forms to file online.
Koinly and ZenLedger are two popular options, providing users with an intuitive user experience. Both programs feature user-friendly software for beginners and experts alike, offering import capabilities from exchanges and wallets for transactions that need importing as well as gain calculations. Koinly also features its unique automatic matching of transfers between exchanges and wallets which may help traders avoid unnecessary taxes.
Coinpanda provides support for over 65 countries and can import data from multiple exchanges and wallets using API keys or CSV files, importing staking income, NFT transactions and interest from decentralized finance (DeFi). A free version is available with up to 25 transactions each year while premium plans start from $150 annually.
