THE TOOLS ARE INDISPENSABLE IF YOU WANT TO BECOME A PROFESSIONAL TRADER
23/07/2018 - Minh
Now, many people know how to invest in Cryptocurrency but in terms of trading? Both of these need different ways of thinking. In order to invest, you need to have a foresight to be able to recognize the technology that it will bring in the future. So, if you're looking for how to save your retirement or get more profits in the future, holding is not a bad choice. And it is essential that you review the fundamentals of Cryptocurrency and decide how you can benefit from it in the long-term.
For those who want to make currency any time in this market, you need to use a strategy in the short term. That means you need to find Cryptocurrency with stable liquidity and buy at low, sell at high when it's profitable. This is reason why it is possible to make currency from this market, but with fluctuating band width, accounts are easier to burn than traditional stocks or currencies a lot. Hence, with very high risk also comes with very terrible profit from this market.
This is an Cryptocurrency transaction and it is becoming quite complex. It is also reason why so many tools to support Cryptocurrency transactions are being used. And here are some tools that can help you make better in Cryptocurrencies transantions.
What are the tools to support Cryptocurrency transactions?
There are a lot of trading tools and you will want to use a variety of tools combining with together to make the best results whether you are a holder or a trader. There are many types of tools, such as a trading platform. It is a place for you to buy and sell Crypto, wallets to store Cryptocurrencies with tools to help you keep track of your assets. Next, complex tools help you analyze and make a decision to buy or sell.
Peter Borovykh, RoninAI Foundation said:
"The strategy is the most important thing in Cryptocurrency market and the support tools are seen as your arsenal."
Below is a breakdown of the available and upcoming types of tools
An Exchange is a place where you can exchange cash with Cryptocurrency or exchange Cryptocurrency with each other. There are a lot of Exchange and this is the first thing you need to do if you want to be a trader, which means that this is one of the first tools to use.
There are centralized and decentralized Exchange. At present, most of Exchange deal with majority of market transactions but this ratio may change in the future.
Transactions on the decentralized platform are less attacked, but they are less likely to be used. For example, decentralized Exchange are the Radar Relay and the Ether Delta. For a beginner, CoinExtra is a sensible choice for you.
The Exchange is vulnerable to attack and that is reason why many traders choose to store their Cryptocurrency in their wallet. On the basis of safety, accessibility, hard to lose, affordable and easy to use Some are free, but some are not free. You will want to find out what features are most important to you because a perfect wallet has not yet been released, although there have been major improvements in the Cryptocurrency market this year.
Portfolio management tool
This is interesting (and scary). This kind of tool will allow you to track the overall performance of your "army", in other words, it allows you to see your total profit or loss. Some Exchanges and wallets have built this feature, but if anyone still does not have this tool during the transaction, you will certainly regret it!
Tracking your portfolio will be very necessary if you have a variety of Cryptocurrency funds or if you trade frequently.This is a great way to keep track of your assets. For the crazy fans of the stock, there are tools to manually track or browse. Make sure you keep track of your assets and have very handy tools like TrackMyCrypto - a tool of chrome and it is added simly to the chrome . But for a trader, it is advised to use a more advanced tools such as CoinTracking.
You do not need advanced tools to perform Cryptocurrency transactions, but you will want to use "genuine" tools if you are really serious about making long-term profits by trading. These are tools that help you make more informed decisions and reduce the risk when you "engage" in the Cryptocurrency market. There are a lot of new enhancements that are very good and coming soon, so, looking for the most convenient tool for you as these tools will help you make a profit in every transaction.
Technical analysis tool
Finding a good analytical tool is really difficult. And the question is, what exactly is it analyzing and based on?
For Cryptocurrency trading, technical analysis can help you know where your buy / sell points are, how much your currency is going to rise / fall, how to update the blockchain protocol and how much it will affect it. Other factors with the ultimate goal are still increasing or decreasing. When the value of an Cryptocurrency falls, you buy because you know that the current price is being "sale-off" and it will rise further. As it grows, it brings profit for you, you will sell it off based on the analysis you know that it will definitely reduce the price again.
That sounds like the stock market, so that's why many tools like TradingView apply to other markets such as stocks and forex but remember that Crypto trading is not stocks. Your trading account will be much easier to evaporate than stock, and the market is more difficult to predict and is affected by a variety of factors. Also keep in mind that stock trading is very complex so this technical analysis tool will not be for the " tenderfoot " to enter the market with thinking of earning currency quickly because of the use of tools for technical analysis with the knowledge to master is very difficult, unless you have too much experience dealing with securities or forex.
One thing that is easier to grasp than that is market psychology. If people think that it works well and think positively about it, it is likely to increase and vice versa it will decrease (when negative). Artificial intelligence and machinery work very well to evaluate many data in a short period of time. Analytical tools for Crypto market are beginning to become more "real" and there will be better things to be able to interpret the data most accurately for you and adjust the techniques yourself to change the market.
At present, only RoninAi has platform that can analyze and interpret technical data, market sentiment and a certain currency. It is expected to launch this summer.
Paul Veradittakit, Panterra Crypto Hedgefund said:
"The opportunities in terms of numbers are very attractive, especially if you have a good team of both Cryptocurrency, quantitative trading and mechatronic. You can make all transactions such as low buy, high sell, etc. "
Some portfolio analysis and management tools are built into Exchanges but there are also tools to inform you of market changes. This tool is really handy because you can not keep track of the market 24/7. These tools are often associated with bots (not to be confused with Ai) and run on static algorithms to serve a specific purpose.Although bots can not interpret or adjust to market changes, these programs are highly functional to inform these market changes at any time.
You can also use the Cryptocurrency news and notice aggregator tool like CoinBuzz for the same purpose.
For traders with no analytical tools, this can help you spot market trends. A currency drops a lot and sometimes as a red candlestick, which makes you split account into 2 or 3 .This shows definitely that its value is not likely to recover immediately. And it may also be the time to sell according to the market trend. But keep in mind, this is not the optimal strategy. The theory is to buy as low as possible, sell as high as possible to maximize profits. However, it is difficult to predict, so using the notification tools is a way to handle situations in a timely fashion.
Some of the tools mentioned above have integrated risk management and this is really important. For example, if you have a 5% loss, you sell it before you lose more than 5% when it starts to fall, minimizing the loss. That would be bad if you tried to "stay" and it would continue to go down because in that case you want to keep it as it grows up and then sells, but in the meantime you have already had a long backlog of capital. Knowing how to set up auto-notifications will be very helpful when you are making a lot of transactions at a certain time.
These advanced tools are not meant to make transactions difficult, although it may seem a bit complicated. Instead, Cryptocurrency transactions themselves require a lot of discipline and understanding, a lot of time that most of us will not have enough time for this. These tools will make the transaction easier, but always make sure you use it wisely. If you are a beginner, experiment with everything and find out what works for you, so do not go into too deep until you find your own strategy.
One thing is for sure that if you buy and sell electronic money with your understanding of trading strategies using these tools can help you minimize the risk in trading and increase your profits. in this field.
According to CryptoCoinsNews.
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