6 Tips for Choosing the Right Tools for Cryptocurrency Trading

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Source: Medium

Crypto trading requires a high level of knowledge, skills, interest, but also having the right platforms and tools to accomplish your goals. Since you are here, you are probably interested in trading, or you’ve already tried something, and now you want to be more informed about all the aspects and possibilities you have at the crypto market. If you do it right, you can be sure that all your actions will result in a profit, and improving your economic health, especially right now, when the world is fighting against the new wave of the dangerous coronavirus.

You also maybe know what’s mining, trading, and exchanging, as the main activities of working with cryptocurrencies. But, sometimes you need additional tools, so you can stay active and earn as many cryptos as possible. The most common trading tools are tax reporting software, trading bots, charts, and APIs. How can you be sure that you are using the best of them? Here are a few tips for that:

1. Crypto tax reporting software

Source: Pinterest

This tool can help you manage your actions, and also increasing your chances to profit. The trick is to find reliable ones, by researching them and look for real and legit user experience. These tools include analysis of your current activity, generating charts, listing the best trading websites (you can look here to see what is verified trading platform), and giving you tips on how to secure your activity, and protect the earnings from cyber-attacks. During your trading, it will also calculate the tax fees, if required in your country. It is advisable to consult with a tax expert or CPA online with TurboTax Live from your house in Seattle or wherever else you might live just to make sure everything is covered. Sometimes they can generate predictions or recommendations for your future activities. You can convert your crypto belongings to their equal worth in fiat currencies, and keep a history of every move, so you can easily find some previous activity.

2. Finding the right trading bots

Source: Altrady

Some software lets the traders use bots, so they can automate the activities, and plan what they will do next. In most cases, these tools are pretty expensive, because they really have a huge responsibility working for you, and ensuring that your earnings and savings are safe and secure all the time. Most of them are cloud-based, and the best thing is that you can sync them with your smartphone, so you can be notified when something important is happening on the market. Don’t go for the free bots – this is the best advice you will get when talking about them. If you don’t want to put your earnings at risk, then you consider buying the bot as an additional investment that will improve your trading performance.

3. The chart tools

Source: YouTube

If you have serious intentions to be active as a crypto trader, then you will need to follow how the rates changed over time. This is essential because many traders are sure they can predict how things will go, based on the previous experience. Also, you can compare the different cryptocurrencies, so you can decide when it’s the right time to trade, and when to stop. The best thing is that the charts are easy to read and understand. Find the one that you find easy enough to follow, even if that means you need to pay some price for that. You can choose different criteria, and the tools will generate a chart following your interest. Sometimes, if you read them carefully, you can find important things and details that will help you plan your trading.

4. Crypto API tools

Source: Medium

API is short for Application Programming Interface, and it’s a type of tool or software that is helping two separate apps to sync and communicate, for mutual benefit. For example, the Facebook chat is a separate program from the social media with the same name, but it’s imported successfully, and you can send and receive messages, using only one pair of credentials, instead of logging in to both apps. In crypto activities, APIs are used to collect data from reliable resources and sync them with your trading profile. That helps you not to miss anything important, and always receive crucial updates for your activities. The same advice here – don’t use free and untrusted APIs, because it may end up really bad. You will probably earn enough from your trading activity, and you can afford to pay a little for a complete premium plan.

5. Automated tax payment

Source: The Financial Express

Trading can be taxable activities, depending on where you are based geographically. That’s why most of the trading platforms charge the taxes immediately, once you get your earnings. This is great, especially if it’s legal in your country. In other cases, you will use some of the tools we described above, to calculate the taxes and pay them by yourself.

6. Cryptocurrency wallet

Source: Finance and Markets

Once you complete the transactions, you have to transfer your crypto coins to the e-wallet. That can be software installed on your computer or even an online service you can use for that purpose. But, experienced traders know that the best option is owning a physical device that is protected with private and public keys, PIN codes, passcodes, and passwords, so the earnings can always be safe until the person decides to exchange them for money, or spend them the way they want to. Owning a cryptocurrency wallet is maybe the most important tool for your trading activity on the network. But, our advice is to choose the physical option, and remove it from the computer once you use it. Some people even keep it locked in a safe box, so they can be sure no one will be able to touch it.

Conclusion

These were the most important tools and the tricks on how to choose the best of them. Crypto activity is not a joke – it can be a serious source of additional money to your household if you are dedicated enough, and you know how to do it. In the end, we will say that you have to be active and follow what’s new every day, so you can stay up to date with all the changes and improvements.

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