Cryptanalysis tools and crypto analysis tools may sound similar, but they are completely different. Blockchain developers use cryptanalysis tools to test the integrity of blockchain encryption, and traders use crypto analysis tools to derive meaningful insights for profitable trading. This article will explore different crypto trading tools and their various uses.
Table of contents
- Crypto Trading Tools
- Market Data
- Crypto Trading Analysis Tools
- Portfolio Management Tools
- Data Analytics Tools
- Other notable crypto analysis tools
- Social Networks and News Aggregators
- Different Uses of Crypto Analysis Tools
- Why Is Market Data Important?
- Analysis Tools and Exchanges
- Best crypto trading tools – Conclusion
- Enjoy Crypto Trading on Swapzone
Crypto Trading Tools
Some traders consistently pull off successful trades in the crypto market, while others lose them. The difference between these two types of traders is their understanding of the different crypto trading tools.
A proficient crypto trader uses various tools for analysis before making a move in the constantly volatile market. These crypto trading tools belong to different categories, which include:
- Market data
- Data analytics tools
- Charting tools
- Portfolio management tools
- Social networks & news aggregators
The key to becoming a successful trader is to master these trading tools. These tools provide real-time data that help traders make prompt decisions about the market. Let’s explore each category in detail.
Coingecko is a tool that projects real-time market data of thousands of cryptocurrencies. You can filter the coins using the categories section and explore other features like portfolio tracking and a crypto learning platform.
CoinMarketCap is arguably the most trusted source for accurate market data. This site keeps track of the price of thousands of cryptocurrencies and ranks them by market cap. CoinMarketCap also integrates ICO and events calendars, free airdrops section, a jobs board, and the Alexandria crypto learning platform.
Crypto Trading Analysis Tools
One of the most important aspects of trading is using charting tools to visualize the market. Traders use charting tools like TradingView to identify price trends that help them figure out the position of the market, providing a sound basis for making smart trading decisions.
TradingView offers trading charts for stocks and cryptocurrencies and is the best charting tool for technical analysis. It’s also a platform where enthusiasts, traders, investors, and educators can connect to share ideas about the financial markets.
Portfolio Management Tools
As an investor, portfolio management tools help you manage your investments, especially when your assets are spread across different wallets and exchanges. Sometimes it can be hard to keep track of the performance of your various investments, but it becomes easier when you can view them all in one place. That’s what portfolio management tools provide, easy access to track your investments. Let’s take a look at some.
BlockFolio is the largest mobile portfolio tracker with a coverage of over 500 exchanges and 10,000 coins and tokens. Its features include news feeds, price alerts, and an overview of your portfolio on a sleek user interface.
Like Blockfolio, CoinTracker provides information about the market and your investment performance. It supports more than 300 exchanges and over 7,000 cryptocurrencies and allows you to download your tax report easily.
CryptoCompare provides market data and a unique feature to view public portfolios created by other users. It supports over 150 exchanges and allows users to track their investment portfolio in real-time.
Data Analytics Tools
When it comes to analyzing blockchain data, various data analytics tools come in handy. These tools provide data, research, on-chain indicators, and metrics needed for smart trading and investment decisions. Let’s explore some of these data analytics tools.
CryptoQuant is an analytics tool that provides real-time market data, exchange flows, on-chain indicators, and sentiment analysis. Its features also include mining and derivatives indicators and price statistics.
Dune Analytics is a popular DeFi tool used to query Ethereum, Optimism, BNB Chain, and Gnosis chain. It’s an open platform that allows anyone to publish and access various crypto dashboards used to track data on the blockchain. Analysts use SQL queries to analyze data on any smart contract built on the supported blockchains.
Dappquery contains several features for extracting data from the blockchain. It supports smart contracts built on Ethereum, Polygon, xDAi, and Fantom chains. You can query these blockchains using SQL and visualize your analytics on various intuitive dashboards.
Nansen is a blockchain analytics tool that provides access to accurate crypto and NFT insights. It supports Ethereum, BSC, Arbitrum, Celo, Fantom, and Polygon. The website publishes in-depth research articles and blog posts periodically. You can access important token flows and features and create dashboards using direct SQL queries.
Coin metrics is a trusted data aggregator that provides original research on Cryptocurrency topics. The site also features newsletters on crypto market coverage, including a state of the network newsletter. Coin metrics also provide special insights for on-chain data, futures, stablecoins, and NFTs.
IntoTheBlock is a prominent data science company that provides four major services for crypto enthusiasts: Analytics of hundreds of assets using varying indicators, price predictions to forecast the future positions of several coins, DeFi insights, and capital market insights.
APY Vision is a DeFi tool used to track liquidity pool performance across different protocols and networks. It supports different blockchains, including Ethereum, Avalanche, Polygon, Harmony, and Fantom. You can use APY Vision to calculate potential farming rewards, monitor your vault, and track your gains.
Other notable crypto analysis tools
LunarCrush is a social analytics tool that uses AI and machine learning to extract data from hundreds of sources to provide insights for making data-driven trading decisions. It provides a dashboard consisting of price movements and social trends and gives you a glance at the market and social media reaction at once.
Messari offers a comprehensive approach to analyzing crypto data. It has an assets screener for tracking crypto assets, a charts explorer to explore hundreds of charts, a watchlist to track all your favorite assets in one place, and a library of research on web3, NFTs, and DeFi. You can follow major events in the crypto industry with the built-in Intel and keep track of governance activities across various DAOs.
Social Networks and News Aggregators
Information drives the price of various coins and tokens. A single tweet by a prominent social media influencer can send a coin tumbling down or flying high. News about the legality of cryptocurrency in a particular country can shift the direction of the day’s trading.
Staying abreast of the happenings in the world is crucial to making the right trading decisions. More importantly, being part of the first number of people to get relevant information can give you a headstart for making a successful trade or investment.
Social media platforms like Reddit, Twitter, Discord, Telegram, and forums like BitcoinTalk usually circulate information and general market opinions surrounding cryptocurrencies. Of course, not everything on social media is right, but you can leverage market sentiments for your trading analysis.
You can get in-depth information from news aggregators that collate blog posts and articles about relevant happenings in the crypto industry. Some of the most popular crypto news aggregators include Cryptopanic, Coinspectator, Coinhills, Coinjoy, etc.
Different Uses of Crypto Analysis Tools
Technical analysis in crypto is made possible by the different features provided by several crypto technical analysis software. They include:
Crypto analysis tools contain diverse technical indicators used for chart analysis. These indicators help traders to analyze and understand charts. From the analysis derived, traders can understand the position of the market and if it’s a good time to buy or sell a cryptocurrency.
Examples of technical indicators are the Relative Strength Index (RSI), used to measure the magnitude of current price changes. The Moving Average Convergence Divergence (MACD) helps traders know whether the market is bullish or bearish. And the Money Flow Index (MFI) is an indicator that measures a crypto asset’s buy or sells pressure via the price and volume changes.
Crypto analysis tools make it easier for traders to interact with the ever-growing data generated in the crypto market. These tools provide metrics based on over ten years of historical data on a chart so traders can easily interact with it. Some of the metrics provided include market cap, exchange flows, fear and greed index, market dominance, etc.
Some crypto analysis tools also provide in-depth information using certain resources to track on-chain data from different blockchains. On-Chain data represents transactional information recorded on the blockchain, which is open and transparent for the public. Analysts can track data regarding public wallet addresses, transactions and the corresponding amounts, miners’ fees, and more.
Many crypto analysis software providers have also started incorporating algorithms to analyze social media posts using social metrics like social dominance, trends, and engagements across different crypto communities.
Why Is Market Data Important?
Reviewing market data using different analysis tools enables you to analyze information accurately and make smarter trading and investment decisions.
The blockchain contains tons of data that can be used to predict market movements and make profits via trading or long-term investing when accurately deciphered.
Analysis Tools and Exchanges
Before you subscribe to any of the listed crypto analysis tools, use the best crypto exchange platform. Here’s why!
- As a trader, sometimes, you need to make trading orders at lightning speeds, but if your exchange doesn’t provide enough liquidity, your transactions will be slow, and you can miss out on a profitable trade or, worse, lose money.
- Some exchanges have a recorded history of getting hacked. Ensure you select a secure exchange without news of any security compromise.
- Regarding transactions, trading fees can cut your profits more than you imagine. It’s always good to choose an exchange with lower trading fees as this equals more profit for you.
Best crypto trading tools – Conclusion
As you explore the different crypto analysis tools, check out users’ reviews on the accuracy and performance of the platforms. Some of these tools are premium; ensure you have the accuracy, transparency, and a track record of good performance from user reviews before subscribing to them.
While some platform interfaces might look complex to you, it becomes easier to work with after consistent practice. You can brush up your knowledge on crypto technical analysis by watching relevant YouTube videos and reading books with enriching information on the subject.
Enjoy Crypto Trading on Swapzone
Now that you know all about crypto analysis tools, you can enjoy trading on exchanges like Swapzone.
Swapzone is a decentralized exchange that offers increased liquidity, zero incidence of getting hacked, and transactions at the lowest fees possible.