What do you need to trade cryptocurrency? You need an understanding of the market, some technical know-how, a high tolerance for risk, and of course, a little luck. In addition to these internal needs, you need the right resources as well.
The resources needed for trading cryptocurrency include things like an exchange to trade on, charting tools, a crypto news aggregator, a crypto wallet, and even tax software. While there aren’t as many of these resources for crypto as there are for more established trading markets like stocks, there are still some choices to make in each category.
If you are looking to get started in trading or up your game and start trading like the pros do, you want to use the same tools and resources they do. Here are five resources crypto traders love and that you will want to check out for yourself.
Kraken is one of many options when it comes to trading platforms, according to Cove Markets. This San Francisco-based company was founded in 2011 and launched in 2013, making it one of the oldest cryptocurrency exchanges.
The exchange came to prominence in 2014 following the Mt. Gox exchange scandal. Kraken was chosen to help in the investigation and liquidation of the world’s most popular exchange at the time. Over the next six years, Kraken has grown into one of the most well-known crypto exchanges in its own right.
In 2020, trading on Kraken is available in almost all U.S. states and over 170 companies. The exchange offers lower fees compared to its biggest competitor, Coinbase. It also offers more than 40 different cryptocurrencies for users to trade and offers good liquidity, especially for traders in Europe.
Kraken had a run-in with New York State in 2018 and was accused of state violations but the claims were never proven. The exchange is not currently available in New York. They also do not give users control over crypto wallet keys. This may change in the future, though, as Kraken is moving forward with plans to open a U.S. bank.
TradingView is a site that allows you to read and create charts for technical analysis. With these trading charts, traders can follow the cryptocurrencies they are interested in trading, spot trends, and opportunities, and even interact with other investors to discuss the charts.
This site gives you real-time information to chart right from your web browser. The site is laid out in a way that is easy enough for beginners to use and also offers advanced features that serious traders will find helpful. This is why over 12 million traders use TradeView.
One of the best features of the site is the ability to make candlestick charts, which are very important in the crypto trading world. Each point on these charts shows the high, low, open, and close of an asset over a given period of time. By creating and studying candlestick charts, traders can spot trends to identify the best time to buy or sell.
Cryptocurrency markets are 24/7 and they move fast. In order to capitalize on upward movements or get out before a downturn hits, you need to get your crypto news in real-time. This is where a crypto news aggregator like CryptoPanic comes in.
This resource gives you the latest news in the cryptocurrency world in real-time. The site provides news that affects the prices of cryptocurrencies. It is a social site where users can vote on news stories that are most important or that signal bullish or bearish trends. The more votes a story gets, the more prominently it is featured.
For traders, you can customize the setup of your news aggregation as well. You can receive real-time alerts on important stories and set it up to follow the cryptocurrencies you are most interested in or that you own. Being in the know is a vital part of trading crypto, so a news aggregator that gets you the right info fast is a must-have.
Cryptocurrency is digital currency so you can’t exactly fold it up and put it in your pocket like traditional currencies. While banks are becoming more crypto-friendly, they are not the best option for traders either. The best way to keep your cryptocurrency is in a cryptocurrency wallet.
These digital wallets come in a few different forms. Each of these forms has pros and cons, with the safer ones being the least easily accessible and the least secure being the most easily accessible. Hardware wallets which are very secure, are physical devices which keep your crypto segregated from the internet to protect it from hackers. The problem is, this doesn’t work well for crypto traders who need to move their crypto fast.
The Exodus wallet is a software wallet. That means it is generally safer than web or mobile wallets and also allows you good accessibility. It has solid backup and other safety features and a very user-friendly design that traders like. There are also built-in features that let you use the wallet in conjunction with different crypto exchanges.
Cryptocurrency is very new in the grand scheme of things and so everyone, from investors to financial institutions to governments is trying to get a handle on many aspects of this digital currency. This can make the tax implications of trading crypto confusing. Many traders, especially beginning traders, have issues when it comes to crypto tax compliance. For this reason, traders need good tax software to help them out.
Cryptotrader.Tax is a straightforward and easy to use tax software that will make sure you stay compliant with any tax implications your trading has. The software allows you to connect to your preferred exchange and upload your trades, and the software returns a tax report for your crypto trading. With this software, you should never underpay or overpay your trading-related taxes.
They say a carpenter is only as good as their tools; similarly, a crypto trader is only as good as their resources. With resources like Kraken, TradingView, Exodus, CryptoPanic, and Cryptotrader.Tax, you should have all the resources you need to trade like a pro. What all these resources have in common is that they are secure, user-friendly, and very useful. That is why traders love them.