The most successful traders and investors are the ones that stay abreast of the latest developments in the cryptocurrency world, as well as constantly seek out new information and new prospective investments. This gives them a clear edge over the casual trader and it makes a stark difference in their portfolio values.
How to Get Ahead in the Crypto Market?
Aside from spending time reading information in forums and dark corners of the internet, there are actually a lot of surprisingly good tools now available to help investors and traders analyze the cryptocurrency market better.
We take a look at the 5 best analysis tools.
TradingView is surprisingly good as it works in two ways. First, it has a comprehensive charting system that will provide in-depth charts across a wide crypto spectrum. And second, it is a social media and interactive platform.
This means that the traders who want an initial overview of the current market conditions can easily access the information. Those traders and investors that want to look at where the margins are for future trades can view other investors’ trading information including historic charts and current holdings.
This two-fold approach gives traders an insight that most market analysis tools don’t offer. Although other social media platforms exist for crypto trading, it can be hard to see which traders are putting their own money into the recommendations they make. With TradingView, you know investors are putting their own money where their mouth is.
Blockfolio is relatively well-known in the cryptocurrency community and has proven to be very helpful to investors and traders alike. With over 8000 cryptocurrencies monitored across over 300 exchanges, the range of features available with BlockFolio is exhaustive.
Essentially, BlockFolio, as the name suggests, is a portfolio management tool for cryptocurrency. The idea is that traders can easily keep track of all of their cryptocurrency investments across a range of exchanges in one central location. What makes this particularly handy is not only being able to view your portfolio on one platform, but also the notifications when prices change beyond thresholds that you set.
It’s not a particularly good predictive analysis tool, but rather a reactive analysis tool that is incredibly useful for traders with accounts across more than one exchange.
Another final thumbs-up for BlockFolio is that the app interface is easy to navigate and sleek making it a pleasure to use.
This is a relatively new trading tool in the crypto market that has been introduced recently by the large crypto exchange, CEX.IO.
The idea of the tool is to give a universal overview of the crypto market and make trading more accessible as well as more profitable for traders by mitigating risks and using hedging strategies to keep losses down. This might sound complicated, but the beauty of the CEX.IO broker platform is that it takes a lot of guesswork out of trading as well as a lot of legwork.
In terms of analysis, it combines all of the charting functionality of CEX.IO and incorporates additional analysis layers such as customizable trading charts and many technical analysis tools. In addition, you can make a try at CFD trading or large-scale margin trading, which isn’t common for other tools.
With CEX.IO Broker, CEX.IO has turned a very complicated proposition into a simple to use and easy to access trading platform.
Reddit is an open forum where seasoned investors will actively engage with the wider cryptocurrency community. In fact, Reddit often serves as a sounding board for new cryptocurrencies, where traders will pick apart each and every new offering.
If the community finds the currency a robust and worthy investment, Reddit is normally the place where it is given the green light. It is also the place where mediocre crypto projects die an agonizing death and where ICO scams are exposed.
Reddit should be like the bible to a serious crypto investor, the community is surprisingly helpful. Although it can be a little cliquey, as long as you genuinely want to learn they are accommodating enough to engage with you.
Even the greenest trader with the most basic question will be helped on Reddit and it is a fantastic place for beginners and professionals to share their knowledge.
Slack is a platform that isn’t too dissimilar to Reddit except the discussions happen in closed groups. Whereas Reddit is a public forum, Slack is much more cliquey and can be daunting to get involved with.
First and foremost, Slack wasn’t really designed for cryptocurrency analysis, it is more a workflow management tool used by companies that employ freelancers. The functionality of Slack does extend to cryptocurrency in that it connects people in groups to discuss trade tips and deals.
Because of the closed nature it can sometimes mean that tips aren’t really scrutinized, and misinformation is more common on Slack than on Reddit. On the flipside, because of the privacy afforded by Slack, traders and investors with inside knowledge often divulge bits of information to the groups they are members of. This information can be phenomenal.
A large number of serious traders are big advocates of platforms like Slack and Telegram and many swear they have made big profits from insider tips that get shared in the groups. For that reason, it deserves a mention in this list!
A Final Word
Cryptocurrency is notoriously difficult to predict and volatility is a word often associated with cryptocurrency trading. Prices rise and fall with seemingly no reason what-so-ever. Unlike stock markets where business progress and trading activity affect the share price, it can be incredibly difficult to pin down why a crypto token has just shot through the roof in value.
Behind the scenes though there are reasons why cryptocurrencies rise and fall, it is just a matter of knowing where to look and understanding the cryptocurrency market a bit better. Hopefully, this guide was helpful to you, and the tools we have mentioned could make the difference in your trading activity.