Although the future of cryptocurrency investing is bright, many people are still afraid to get involved in this type of investment because of its volatile nature. Fortunately, if you’re interested in learning more about crypto assets, many resources are available to help you achieve that goal. So, if mastering crypto trading is one of the items in your 2022 bucket list, here are the top tools to help you gain mastery of the cryptocurrency market and put your learning into action:
- Trading Platforms
Aside from the major cryptocurrency exchanges where you can trade, sell, and buy Bitcoin and altcoins, a trading platform is another essential tool you need to perform trading activities. But better than an exchange, a crypto platform helps streamline your investing experience, so you don’t need to open several windows on your screen when buying or selling various crypto across different exchanges.
Newbies who want to have a deep understanding of this type of investment vehicle must try using a crypto social trading platform because it enables investors to trade different digital currencies and lets them connect with fellow traders. When you integrate social trading with cryptocurrency, you can follow what professional crypto traders buy, sell, or do with their portfolios.
Since a crypto platform works like a social network, you can easily ask questions, discuss tips, and share analyses with other people. Ultimately, this tool can help you master the market faster.
2. Mining Calculator
If you read any beginner’s guide to crypto investing, you’ll learn that mining is another way you can own cryptocurrencies. However, mining may not always be profitable. There are a lot of factors that you must consider, such as the cost of electricity, computing hardware, and even legal issues, to determine if it’s a good moneymaking endeavor for you. You need a mining calculator tool to help you with all the computations and strategy planning related to crypto mining.
3. Arbitrage Bot
Arbitrage is a strategy some traders use to take advantage of price discrepancies in different markets. The basic idea behind arbitrage trading is to buy a digital asset at a lower price on one exchange and sell it on another at a higher price. Since crypto prices move fast, you will need arbitrage bots to let you see the prices of various cryptocurrencies across exchanges and enable you to act quickly before the exchanges refresh their prices.
4. Crypto Tax Tool
Since the IRS and other tax collection agencies from other countries consider cryptos an asset, you will need to pay taxes for your bitcoin and cryptocurrency earnings in 2022. Understanding and computing their crypto taxes may be challenging for some virtual asset enthusiasts and traders, especially since this is a new asset class. That said, you need to plan your tax return if you’re holding crypto.
A crypto tax tool can help you organize all your crypto transactions and determine how much taxes you need to pay for each undertaking. You can search online for such software, just make sure to pick the one that will integrate and automate all your taxable crypto activities.
5. Crypto Wallet
If you’re updated with the news about digital currencies, you’ll know that many hackers and cybercriminals target crypto exchanges. They aim to steal digital currencies or the users’ personal information. So, to protect your investment, you’ll need a personal crypto wallet, preferably a cold storage wallet that’s not connected to the internet.
Think of it like a bank vault. This tool will hold your private keys, and it has stringent security measures that most hackers will find difficult to breach. Since there are plenty of crypto wallets available, ensure that you pick the one that best fits your needs.
6. Virtual Asset Market Data And News Aggregator
Information is crucial for traders, regardless of the type of investment. It would help if you had fast and reliable access to market data and current news so you can speculate and form strategies on how to profit from your investment. As mentioned above, the crypto market is highly volatile. Prices of crypto assets can rise and fall in a matter of seconds, so news and information relating to digital assets are vital for anyone who wants to master crypto investing.
A market data or news aggregator is invaluable if you are involved in cryptocurrency. Since there are so many websites, articles, and even social media pages about crypto assets, having an app or software that will curate relevant news and data sources in one place can boost the way you trade and formulate strategies. Such a tool will let you in on the trends and take the pulse of the cryptocurrency market.
The Bottom Line
Trading crypto assets is one of the best ways to earn money online. But since this market is highly volatile, you can easily lose money as fast as you make profits. It would be best to equip yourself with the best tools and strategies to master crypto trading in 2022.
Please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. CryptoMode is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.