What are some trading tools for cryptocurrency?
Market Stats Tools
Before trading stock, you might look at that stock’s trading volume, market cap, the total supply of shares, and other relevant information. This is no different for cryptocurrencies. These statistics and reference points are important not only for individual cryptocurrencies but for the market as a whole.
Some statistics to consider include:
- Circulating Supply - The amount of cryptocurrency currently circulating in the market.
- Max Supply - The maximum number of cryptocurrency that can ever be created, if applicable.
- Market Capitalization - The total value of the cryptocurrency as determined by the supply multiplied by the price.
- 24-Hour Trading Volume - The amount of coins traded over the past 24 hours.
A good place to go for most basic market statistics is CoinMarketCap, CoinGecko, or any number of similar sites. They provide insight not only into cryptocurrencies, but exchanges as well. This includes basic cryptocurrency statistics like price, volume, and cryptocurrency supply, but also links to a cryptocurrency’s social media accounts, block explorers, technical documentation, and more.
For those interested in more in-depth statistics, Messari is a one-stop-shop to analyze market statistics even further. Messari even has a cryptocurrency screener where you can narrow down your parameters for a digital asset by specific metrics.
,Unlike traditional markets, cryptocurrencies can be traded 24/7/365. This means staying up-to-date on the most recent global news and events is of the utmost importance. Day traders take advantage of small movements in markets, so being just a few minutes behind breaking news can turn a good trade into a bad one. This is where real-time news outlets come into play as a critical cryptocurrency tool for active traders.
Both Cointelegraph and Coindesk are considered industry leaders when it comes to understanding what is happening in the industry and stay abreast on emerging stories. These news outlets have access to experts that are not available in other places, and can therefore provide insight into news stories outside of basic reporting.
But if you want even more real-time updates as they are happening, there is no better place to turn than Crypto Twitter. In this subsection of the social media platform, cryptocurrency experts and enthusiasts are constantly unearthing new information and breaking updates on cryptocurrencies.
Chain Analytics Tools / Blockchain Explorers
Getting to a deeper layer of analysis, chain analytics tools and blockchain explorers reveal the true usage of a blockchain network. When analyzed correctly, this type of information can give traders a leg-up as not many investors take the time to fully understand these networks.
A blockchain explorer provides raw blockchain data and transactions. This includes transactions amounts, timestamps, miners, hashrate, and more. Meanwhile, chain analytics tools take this raw data and provide analysis and trends that can be useful in trading.