When you need a car mechanic, you turn to a person with knowledge, rather than just looking for a set of tools. However, in any case, you would like him to have the proper set of tools to perform certain tasks. This statement is also true for cryptocurrency trading: you must understand its basics well, and crypto tools can help you in this matter.
Despite the fact that some market participants rely solely on fundamental factors, most traders prefer to monitor the price movement before making a move. To do this, they need graphing software. Charts provide accurate information on price fluctuations of a certain currency over a certain period of time. This is an important tool for all traders, and the crypto community is no exception. Here are two very powerful tools that create cryptocurrency charts:
TradingView. This is great software for both beginners and experienced traders. It is able to create the main preferred crypto trader tools – trend lines, horizontal and vertical lines, channels, geometric shapes, pitchforks, Fibonacci lines and even modeling tools. It also offers several technical indicators, such as moving averages (MA), RSI, MACD, Stochastic and Bollinger Bands. In addition, TradingView allows premium users to work with several charts and indicators at the same time, using the notification system as well. Thanks to this feature, traders can receive signals by e-mail or SMS when certain conditions are met. For example, a user can set an alert from TradingView if Bitcoin breaks the support or resistance zone. TradingView can be very useful when used properly.
Coinigy is another online service that provides charting services. In addition to covering most TradingView features, Coinigy also has access to a wide range of stock news feeds. Although this does not apply to traders of the largest cryptocurrencies, Coinigy can be useful for traders who want to capitalize on the volatility of digital coins with less market capitalization. In addition, the platform offers an API service that allows users to connect all their exchange accounts directly to Coinigy, thereby greatly facilitating the life of traders.
To get a clear idea of the cryptocurrency market, it is important to use some crypto tools that specifically provide general information about it. Otherwise, you will sooner or later make a mistake or miss very important information that will affect your trading activities. Here are some crypto tools to help you keep an eye on the big picture.
CoinMarketApp is a mobile copy of CoinMarketCap, a website that is very popular among crypto enthusiasts. At the same time, CoinMarketApp provides data on all coins quoted on well-known exchanges, including trading volume, price fluctuations, market capitalization, bitcoin dominance, etc. The application also displays a frequently updated news feed, which can be very useful if you want to be in the know about the crypto market.
Crypto Fear & Greed Index. Although each token has its own price movement, most cryptocurrencies still follow BTC. Therefore, it is useful to know if the main crowd wants to buy bitcoins or sell them. The Crypto Fear & Greed Index is a comprehensive mood analysis tool. Thanks to an indicator in the range from 0 to 100, this index informs the user about whether market participants are afraid at a certain moment or are simply greedy. The closer to 100, the more greedy people are, which is also a signal to sell. However, it should be noted that the mood of the crowd is usually the opposite of the actual trend, because in most cases the crowd is mistaken.
Traders are more likely to make a profit if they learn to use the main important crypto tools. All successful investors have their own system, and they adhere to a completely defined, consistent and accurate trading plan, where certain instruments play an important role.