Trading crypto isn’t unlike any other online trade. Investors need to use the proper tools to get the most out of a trade, mostly by knowing more about the deal they are making than their competitors. There’s a set of applications and resources out there that can help you do just that.
In this article we’ll discuss the best crypto tools any trader should know about and have, to make better and more informed decisions. The tools can help both new and experienced traders, but in different, and differently impactful ways.
TradingView
TradingView is a widely used platform made to visualize the change in the market. This is a useful aid that helps traders follow the cryptocurrencies they want to trade on and notice the changes in their position on the market. There’s a social aspect to the tool as you can share your calls online and copy those made by others. This is a very popular feature among new investors who want to piggyback on the more experienced ones.
The graphs can be represented as charts, pies, or stacks depending on how each investor prefers to follow an investment. There’s a free trial period for new investors that lets you explore the features before buying the tool.
Glassnode
Knowledge is the most important asset a crypto trader can have. The investor needs to carefully follow the latest updates in the industry and make their decision based on them. Glassnode is a website that provides that inside and it can be very useful if the investor knows how to use it.
There’s a free version that can give you a taste of the service, but for a better version, you need to pay a subscription of $29/per month. Another version of Glassnode with a wider range of topics and insights can be purchased for $799 a month. It’s the one the professionals use.
Token Metrics
Token Metrics provides the same service as many other tools. It follows every available metric about a crypto coin and presents them in an organized way for the investor to spot trends and make trades accordingly. The twist is that it uses artificial intelligence to do so.
The site also offers a variety of learning materials. These include tutorials and market research reports. These tools are as effective as your ability to read them and infer from them. That can mean a lot, but it can also be a waste depending on how skilled and educated the trader already is.
Crypto Fear and Greed Index
Crypto Fear and Greed Index are websites used by crypto traders to get a feel of how their competitors feel about the market at any given moment. It’s important to know that these crypto tools provide a snapshot of the moment in trading and not a long-term trend. They can, however, be used to predict trends.
The tools show that there’s fear or greed in the air based on the stated mood of other investors. If there’s fear in the air chances are that the market will correct soon. Greed shows that the market has been good for a while.
Token Terminal
Token Terminal extracts the data from blockchain applications and provides them to the user in a simplified manner, possibly as a graph. This shows the user how well a cryptocurrency is doing in terms of usage. The data can be presented in terms similar to those used when trading stocks, for instance, price to price-to-earnings ratio.
The investors use it to apply different lenses to how profitable the cryptocurrency is. Other crypto tools do that but Token Terminal simplifies the process so it’s better suited to those that are new to the world of crypto.
Chainalysis
Chainalysis offers an analysis of the cryptocurrency movement on a global scale. The goal of this crypto tool is to follow not only how, but where a cryptocurrency is being used. It shows what markets are buying and selling crypto at any given time and how the trends are shaping up, in this regard.
The available data includes tracking the inflow of Bitcoin to exchanges and monitoring fluctuations in Bitcoin holdings on exchanges. Chainalysis can’t be the only resource a trader uses, but combined with other crypto tools it paints a wider picture of how Bitcoin is doing.
LunarCrush
LunarCrush is a tool designed to gauge the sentiment of crypto investors in real-time and present it to the user as data. It does this by scraping social media for posts and comments about cryptocurrency trading and analyzing it. One of the most important metrics it uses is the level of engagement, but it’s also able to distinguish between sentiments.
It’s an incredibly useful tool for those who want to keep their ear on the market and notice shifts in the mood as they occur. It can’t be the only tool a trader uses, but it’s one of those that help in the long run.
Coindar
Coindar is a crypto tool focused on events within the protocol. They can drive the value of a cryptocurrency both up and down and they can do so in a dramatic way. The users can filter such events using Coindar and it’s up to them to sort out which will become important.
Coindar has its own definition of what an important event is. They are mostly focused on government actions, sudden changes in the market, and new tech developments, as well as the fast emergence of rising markets.
CryptoCompare
CryptoCompare is, on its surface, another site that offers market analysis and comparison. It is just that, but it packs a punch with a wide array of additional features. These include a calculator that helps measure the profitability of mining, a tracker for overseeing crypto wallets, performance benchmarking tools, and a lot of educational resources.
A great thing about this crypto tool is that it can be used by both beginners in the field and those looking for expert analysis and deep dive into the data. In the end, it’s up to the investor to use this data to their advantage.
CryptoMiso
CryptoMiso is different from all the other crypto tools we mentioned as it doesn’t follow the markets at all. Instead, it follows the coding project on GitHub related to cryptocurrency and blockchain technology. The purpose of this tool therefore is to spot the latest developments in tech related to crypto.
The app showcases the important events in this area, but it also shows trends in engagement and how many users are involved with a certain development. All of this data is also presented visually.
Conclusion
Cryptocurrency investors are working in a competitive and complex market with a lot of moving parts. They need to use all the tools that they can get in order to better understand and predict that market. The tools on our list can help with that. It’s mostly done by noticing and presenting trends.
The data provided by the tools we mentioned is just the first step. It’s up to the user to draw conclusions from the data and to act on it. Regardless of how good the tool is, it’s not a guarantee that the trades will turn out as the investor planned.
