- Best Bitcoin Trading Tools in 2020
Best Bitcoin Trading Tools in 2020
Trading cryptocurrencies has become quite an art there days.
Professional traders not only know a lot about this activity but also use a wide variety of tools that can help them enhance their success.
However, picking the right tools for Bitcoin trading is also essential.
If trading were a type of food, these tools would be forks, spoons, and knives.
Still, you need to know when to use each of these to cut your mean and digest it successfully.
There are all kinds of tools out there, and some of them are more helpful than others.
Therefore, we decided to make a list of the most useful ones that should help you improve your overall experience while trading Bitcoin and other cryptocurrencies.
Nowadays, trading can be automated, meaning you can set parameters and let tools do some of the grunge work for you.
These tools often come in the form of bots that monitor exchanges and act on your behalf.
3commas is a tool that offers its users to reap all the benefits that trading bots offer.
One of the most common actions you can instruct bots is to execute buy or sell orders on a crypto exchange for you.
However, things you can do with crypto bots can be much more complex than that, and 3commas definitely offers you an opportunity to experiment with them.
Perhaps one of the most useful features of 3commas is copying other traders’ portfolios and making your bots repeat the same actions from portfolios they copied.
Once you enter the crypto trading business, you’ll start noticing that you cannot keep track of all coins on all exchanges where you actively trade. Experienced traders might be able to track everything in their heads, but beginners need some assistance.
This is a simple online platform that lets you see all your coins in all exchanges.
It basically helps you keep track of your coin portfolio and even offers plenty of useful charts and graphs that can affect your trading decisions.
The visual part of the tool can also help expert traders, which is why Cointracking is considered a tool both for newbies and for professionals.
TradeSanta is another trading bot, but it’s much more convenient than 3commas if you’re new to the world of trading.
Simply put, using 3commas can be confusing if you don’t have prior experience working with bots.
That’s why TradeSanta is the right choice for you.
The only thing you can do with this nice little tool is set long and short positions.
It’s easy to connect it with an online exchange, as it comes with a great API.
There are two downsides about this tool, however.
First of all, it’s not free, and, secondly, it still doesn’t support a lot of exchanges.
Hopefully, the bot will include additional crypto trading platforms in the future.
We’d bet it’s the best one to introduce newcomers to the world of trading bots.
Unless this is the first article about cryptocurrencies you’re reading, the chances are you already heard about CoinMarketCap, as it is one of the most popular tools used by newbies and experienced traders alike.
Essentially, CoinMarketCap is a website that provides an overview of all cryptocurrencies.
You can see everything you need about currencies you want, including their total market cap, current price, volume, circulating supply, changes, price graphs, and more.
It’s a great way to compare various cryptocurrencies and make decisions accordingly.
CoinMarketCap tracks hundreds of cryptocurrencies and provides the latest information about them.
However, in the world of decentralized currencies, relying on just one centralized platform isn’t enough for most crypto traders, that’s why they seek a second opinion on a different platform.
This leads us to our next tool – CoinGecko.
CoinGecko is like a baby brother to CoinMarketCap.
It does exactly the same thing, but traders must check at least two sources to ensure neither of the platforms is providing incorrect information.
CoinGecko also offers an overview of prices, market changes, market cap, liquidity, and more.
Some people prefer using it as their primary source of information instead of CoinMarketCap, but it’s a matter of personal taste.
One of the most important things in crypto trading is to stay up to date with what happens in the industry.
Most of the cryptocurrencies out there are parts of projects that are still being developed.
The entire industry is under development, with thousands of the brightest minds in the world working on upgrading their blockchain-based projects.
Why is this important?
Well, whenever there’s a coin beta or alpha release, you should know about it, as it becomes a potential coin for making a profit.
Moreover, there are various mainnet and testnet launches all over the industry, and many projects often introduce new features.
Whenever something like that happens, there are price changes for certain cryptos, and you want to be there when that happens to get the most of it.
Another thing that affects crypto prices is news, meaning whenever news about a certain cryptocurrency pops up, there’s a possibility that the price of it would go up or down.
This sometimes affects other cryptocurrencies too.
As an experienced trader, you want to know all the latest news about the cryptocurrencies you’re trading.
That way, you’ll always be a step ahead and know what to do.
CryptoPanic is a simple tool that you can customize to follow the news about cryptocurrencies you use.
It will help you stay up to date with some of the social media profiles and YouTube channels you’re following.
Cryptocurrency trading is not an easy thing to do, as it requires a lot of devotion and research.
Luckily, some tools can help you improve your chances of making a profit, so check them out and incorporate them into your trading strategy.