The crypto craze truly went into high gear when stories like “Bitcoin Billionaire” circulated in the market like wildfire. For the last two years, people were astounded to learn that many had made fortunes in Bitcoin, Ethereum, and even the viral meme coin, Doge.
Yet, not everyone who invested reaped the benefits as they lacked one vital stepping stone into the decentralized world: crypto tools.
Crypto tools are defined as a wide range of products and services that helps investors to build, monitor, and manage their cryptocurrency holdings.
At the same time, these tools act as a deciding factor in growing your portfolio. To navigate through the crypto space easily, we have sorted out the top 10 crypto tools that will be handy to keep track of the rapidly-changing value of crypto investments.
While several noteworthy cryptos flooded the market, many individuals and entities jumped into profit from new intriguing concepts of decentralized finance, NFTs, metaverse, and more.
Though properly speculating the crypto sphere is an ongoing process, you can start by exploring a few important crypto tools to make an informed investment decision. In this article, we’ll go over the latest crypto trading tools that you need to have before you start trading.
Best Crypto Tools for Growing Your Portfolio in 2024
Here are the 10 best crypto tools for you to use in order to keep their portfolio at good balance.
1. Crypto Exchange
If you’re at all interested in crypto, chances are you’ve heard of crypto exchanges. It’s a common “starting point” for many investors to streamline their crypto trade. Crypto exchange gives you entry into the decentralized finance industry.
However, there are some factors you must be aware of to differentiate between a useful exchange and a useless exchange, as not all have functional offerings.
The three vital pillars to choosing the right crypto exchange are liquidity, security, and fees. Look at all the three parameters to make the most of the available platforms in the market.
- Liquidity defines the ease at which a crypto asset can be purchased or sold. If a platform offers more liquidity then it means there will always be a buyer or seller waiting on the other side to trade with.
- Security is what develops trust between consumers and crypto exchange. When you invest a huge chunk of hard-earned money, you are trusting the platform to hold your funds securely. Looking at today’s scenario, there are several instances when crypto exchanges suffer attacks, losing millions to hackers. Though somehow the platform often manages to reimburse the amount to its users, still nobody wants to wake up to an empty account even temporarily.
- Utilizing this crypto tool at its best requires considering fees to make maximum profit from the investments. Hence, choose platforms that are cheap while also providing ease of liquidity and proper security.
That’s not all. Crypto exchanges are branched out into two types: Centralized and Decentralized exchange.
While centralized exchanges offer faster transactions. user-friendly experience, and high liquidity, the decentralized exchange has low transaction fees, user-controlled assets, and fewer regulatory burdens.
The advantage of a decentralized exchange is that it eliminates the need for users to deposit funds directly into the exchange; instead, they can keep their funds safe in their wallets. This provides better security but requires proper knowledge in terms of usage.
Nevertheless, each of these exchanges has its own perks and quirks when it comes to your personal financial goals. To begin with, you can check out the examples of leading crypto exchanges.
- Centralized Exchanges (CEX): Binance, Coinbase, KuCoin
- Decentralized Exchanges (DEX): Uniswap, Sushiswap, 1inch
2. Crypto Wallets
One of the most necessary crypto tools is a crypto wallet. Understand it like this, a crypto wallet is like your bank, and hence choosing reliable wallets means better protection from hackers. You can lose all your money in an instant if the private keys of your wallet get into the hands of hackers.
Note that private keys are what grant access to your funds and are required to make transactions over a blockchain. The hacker after stealing the private key can send your crypto assets to the wrong recipient. To avoid such mishaps, you must avoid poor wallet user interface and go for the wallets which have optimum security.
Much like bank accounts are foundational for fiat currency, crypto wallets are an essential crypto tool to enable the practical utility of cryptocurrencies. Crypto wallets let you meet the following needs:
- Crypto wallets allow users to manage and monitor a balance for cryptocurrency assets.
- Sending and receiving crypto payments is a primary reason why they are needed. At the same time, you can access, connect, and interact with Web3 dApps with much ease.
Crypto wallets are basically a security solution. It doesn’t hold your crypto assets as it is stored on the blockchain, instead, crypto wallets allow you to access your holdings using a private key. If you lose your private key, you lose access to your money.
You can choose a hardware or software crypto wallet for security reasons. Most investors prefer hardware wallets to be on the more secure side. Some of the widely used crypto wallets are Ledger, Trezor, Metamask, Math, and Trust.
3. Blockchain Explorer
The next crypto tool that you must learn to use is Blockchain explorer. It is among the crypto tools that help investors in keeping track of their transactions. Blockchain explorers allow you to check the status of whether your transaction was successful.
In simple words, Blockchain explorer is defined as the user interface which enables users to interact with blockchains and view transactional data on the network.
For example, if you send a Bitcoin to your friend, you can check on the blockchain explorer by typing in your Bitcoin wallet’s public address or transaction ID. It is really that simple when you need to know how many confirmations the transaction has or the amount that has been delivered to the recipient.
This is one of the best crypto tools that provide a lot more information including the number of outstanding and past transactions, number of coin holders, largest wallets, transaction sizes, current block height, and more.
You can find all the necessary data in one place and get peace of mind knowing the transaction has been successfully sent and is not pending. Remember, every blockchain has its own explorer which you can easily search from the web.
Examples of blockchain explorers are Blockchain.com, BTCScan, Etherscan, and Tronscan.
4. Analysis Tools
The best approach to set your foothold in the crypto space is to test out different strategies and crypto tools that work for you. Being aware of crypto tools gives you an advantage over other investors. Here, crypto analysis tools come into play.
In this section, we will talk about two essential crypto analysis tools which will help take a lead in 2023 to fetch handsome profits.
Charting Tools
Among the best crypto tools, a charting tool allows you to visualize various trading indicators and draw trend lines to better understand the market. Beginning your journey in the decentralized space, you must be ready to do your own research before investing in any crypto asset.
Practicing trading indicators and trend lines help to draw conclusions, ultimately making you a pro in carrying out technical analysis (TA) which is a key factor in staying ahead of the curve. If you know how to TA then you can win big profits but this is only possible when you master the crypto tools like Tradingview.
Tradingview is a leading charting provider consisting of a plethora of technical indicators that help you to make better predictions and notice patterns.
Market Data Analysis Tools
Another crypto tool down the line is a market data analysis tool. These tools act as a platform that offers near to real-time, precise, and accurate information regarding price movements, total supply, circulating supply, and more.
One can not skip analyzing market data as having an accurate idea of price fluctuations sets apart the winners from the losers. The reason is, market data requires integrating with several exchanges, calculating average prices, and normalizing data while making sure there are no errors.
To become a profitable trader or investor, it’s mandatory that you take notice of every aspect a crypto market has to offer. Hence, this crypto tool is helpful for investors in knowing what everyone else in the market sees.
Examples of market data providers are Coinmarketcap, defipulse, Glassnode, and Duneanalytics.
Also Read: Top Crypto Traders to follow in 2023
5. Crypto Calendar
When we talk about essential crypto tools for traders, the crypto calendar is what offers a wide perspective on upcoming events and recent developments.
The crypto calendar provides a round-up of the most significant economic events taking place in the year. These events impact the crypto markets and keeping tabs on the latest crypto and NFT projects help the traders be aware of the team behind it, the roadmap, and more.
This crypto tool notifies traders and investors so that they don’t miss any important event, may it be an airdrop, hard fork, block halving, or any other upgrade blockchain is going through.
Crypto calendars typically include exchange delisting, forks, coin burns, crypto-related events and conferences, airdrops, and crypto bounty programs. The prominent crypto calendars in the market are coinmarketcap and coinmarketcal.
If you want to stay on top of multiple events in the crypto industry, you must utilize this crypto tool to have an organized agenda to track major shifts. This way you can save yourself from the unpredictable consequences regarding your crypto investments for the short and long term.
Especially if you are an investor, trader, miner, or crypto enthusiast you can’t miss a thing, and a crypto calendar can help greatly in making rational decisions.
6. Trading Bots
Yet another vital crypto tool is trading bots. Investors can develop the right strategy with a trading bot to rake in profits without constantly gawking at the charts. Trading bots are pieces of software that allow users to set certain parameters based on which bot trades on your behalf. Basically, the bot is capable of executing trades automatically on your behalf, only you have to predefine your strategy.
You can use this crypto tool as a prediction software as well but make sure the bot you are using is reliable. Some of the most recommended trading bots are etorro, coinrule, and phoenix.
Using these simple crypto tools, you can analyze the data, derive useful information, and speculate actionable metrics or conclusions known as trading signals.
Modern crypto trading bots, on the other hand, can help you collect crypto market data in real-time using APIs. As the bots are based on artificial intelligence, machine learning, and other smart technologies, it becomes convenient to profit big time.
Go ahead and experiment with automated trading solutions to organize your trades and eventually make beneficial investing decisions.
Crypto tools are all about making your trading game powerful while making you a successful investor who never misses an opportunity to earn big. To achieve this, you must know how to form your own opinion on current market trends and patterns.
7. Crypto News Channels and Aggregators
This is only possible when you keep yourself updated with the latest news in the crypto space. Crypto news channels are the sources providing daily updates and developments with relevant information for all sorts of audiences.
Whether you plan on investing in a particular crypto project or not, knowing everything beforehand will only do good. Also, a trader must make decisions after going through several reliable sources.
Remember, there are tons of crypto news channels and some of them even are reliable enough as many times the news is sold based on hype. Therefore, it is suggested that you must refer to multiple news channels to cover everything you must know. Some of the best crypto news channels are The Crypto Times, Cointelegraph, and Coindesk.
Well, keeping up with the latest news is not an easy task, and consuming information from everywhere might become repetitive and overwhelming. With hundreds of news sites publishing numerous articles per day and Twitter influencers putting forward their opposing viewpoints, anybody could get cluttered on what to believe.
In such a situation, you must make use of news aggregators which aggregate all the crypto-related information in one view. This way you can have a quick glance at what’s been happening in the crypto market. Seeing all the news laid out in one place, you can easily keep track of potential investment opportunities.
Some of the news aggregators you can begin with are Cryptopanic and messari.
Also Read: Top Crypto Reddit Communities for 2023
8. Portfolio Tracker
Portfolio trackers are the most commonly used crypto tools that help you keep a pulse on your investments. With this crypto tool, you can see the total value of your investments, the change in the value of your portfolio in the last 24 hrs, and the performance of individual coins that make up your portfolio at glance.
Consequently, you would be able to identify any kind of potential risk based on which you can invest accordingly. If you notice one particular coin bringing your portfolio to a redder side then you can easily assess what to do with the help of a portfolio tracker.
Many portfolio trackers have sleek user-interface and features like news sections and signals. Through this crypto tool, you can keep troubles at bay. You can make use of automatic tracking and can create multiple portfolios using one such advanced crypto tool.
Some of the best portfolio trackers in the market are Cointracking, Coinstats, and Coinmarketcap.
9. Crypto Tax Calculator
Wrapping up the list of best crypto tools for the year 2024, we have a crypto tax calculator. This is the crypto tool that makes all the difference. We all know, the crypto market undergoes too much volatility and doesn’t come under any regulatory framework.
Hence, dealing with crypto becomes tricky. Recently, many governments have started recognizing crypto assets while also putting heavy tax slabs. Needless to say, the worst thing to see in the crypto industry is to let the government take your money.
Crypto tax is a real burn in the pocket and organizing your trades properly is the only way out. To execute this, Crypto tax tools hold so much potential in saving your money while also telling how much you owe on taxes in an automated way.
There is no crypto tool like it. It greatly helps in staying organized by calculating taxes for you as per your full income. Some of the best crypto tax calculators are Tokentax and Coinbase tax tools.
10. Risk-Management Strategy & Security Check
While this is not a tool, it is indeed a much-needed approach for a better crypto trading experience. As you know, crypto’s highly volatile nature, considering your risk-appetite is the smart move to safeguard your investment.
At the same time, verifying the authenticity of the platform you land on is another safe trading practice to avoid scams.
