Important Cryptocurrency Tools That Help Bitcoin Traders

Important Cryptocurrency Tools That Help Bitcoin Traders
18 February 2021
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AllAfrica InfoWire (Washington, DC)

Cryptocurrencies are being adopted as a payment method and continue to grow, especially Bitcoin. As they become more and more popular, the number of financial tools and resources for analyzing this new crypto market has also increased. These tools and resources were previously only available for more mainstream markets like equities. Because of the digital nature of cryptocurrencies, there are additional tools that never existed in other markets. These can prove to be very useful for the investors and traders in the crypto market.

A lot of people have been making profits with the help of automated trading platforms and automatic trading robots, such as Bitcoin Revolution. Some consider these robots and platforms to be scams. However, these robots use a number of different tools and factors in order to perform trades for their users. This shows that if you can use the tools correctly, you can make a lot of money in the crypto market. If you are thinking about investing with a trading robot, read more about the " Bitcoin Revolution scam ".

Cryptocurrency Wallets:

This tool is a must have for all the investors and traders in the crypto market. It is important to remember that cryptocurrencies are digital assets and you cannot touch them or hold them. They are stored in digital wallets. A digital wallet holds private access information and allows the cryptocurrency holders or users to quickly buy, sell or use their digital assets as required.

When choosing a digital wallet you should keep two things in mind, accessibility and security. The wallets that are easy to use could have security issues while a secure wallet might not be easily accessible. However, you should be able to find a good cryptocurrency wallet that will have both easy accessibility and security. The users can also rely on a third-party to store their cryptocurrency, like an exchange platform, there might be cybersecurity standards in place, but even then the users can lose their cryptocurrency if the exchange is compromised.

Hardware wallets have proved to be very secure and can hold most of the cryptocurrencies easily. These will exist as USB devices which makes them easier to transport. However, as hardware wallets do not provide easy access, they might not be a good option for active day traders.

Market Stats Tools:

If you are looking to trade a stock, you will probably want to look at that stock's trading volume, total supply of shares, market cap, and other relevant statistics. Trading a cryptocurrency is no different. Relevant information, reference points and statistics are important and can help the traders and the investors in the crypto market.

Let us talk about some of these statistics that are important in the crypto world. Consider the maximum supply and circulating supply of the cryptocurrency you want to trade. Other factors that you should consider include the trading volume of the cryptocurrency and market capitalization. The basic market statistics can be found easily on a number of websites, such as CoinMarketCap . Going through these websites will provide insight not only into the crypto market, but exchanges as well.

Real-Time News:

Unlike the stock market and other traditional markets, cryptocurrencies can be traded 24 hours a day and 7 days a week. The crypto market is always active. This makes it very important for the investors and traders to stay up-to-date with the most recent global news and events that can have an impact on the crypto market. If you are behind and do not take such events and news into account, a good trade can easily turn into a bad trade because of the volatile nature of the cryptocurrencies. Day traders try to take advantage of everyday small price movements in the market by staying updated. This is why real-time news outlets can be a critical cryptocurrency tool for the traders and investors in the crypto market.

You could subscribe to crypto news websites in order to stay abreast on emerging stories. Both Coindesk and Cointelegraph are considered industry leaders when it comes to understanding what is happening in the crypto market. These news outlets, with the help of experts, can provide insight into news stories and in-depth analysis instead of just basic reporting.

However, many traders and investors turn to Crypto Twitter for real-time news updates. In this subsection of Twitter, cryptocurrency enthusiasts and experts are constantly revealing new information, statistics and breaking updates on cryptocurrencies.

Blockchain Explorers and Chain Analytics Tools:

Go into a deeper layer of analysis with the help of chain analytics tools and blockchain explorers and learn about the real usage of a blockchain network. When analyzed correctly, this type of information can prove to be very helpful and put you in a better position as most of the investors do not take the time to completely understand these networks.

You can analyze raw blockchain data and transactions through a blockchain explorer. This includes transactions amounts, miners, hashrate, timestamps, and other data. With the help of this raw data and chain analytics tools, traders and investors can find trends in the crypto market that can be useful in future trades.

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