Cryptocurrency is becoming more and more popular among people of all ages. However, it’s important to remember that when you invest in cryptocurrencies, you’re not just buying digital coins, but also a valuable asset. Hence, it is important to secure them with the best crypto security tools and software.
However, the use cases of these tools are not just limited to security. Crypto tools can help you achieve a lot more. For instance, they can help track portfolios, give signals and daily trading tips, generate tax reports, and a lot more!
Let’s look at different cryptocurrency tools and help you choose the best options.
Why choosing the best wallets is important
Choosing the best crypto wallet is important for several reasons. Foremost, a good crypto wallet provides security for your digital assets. Cryptocurrencies are stored on decentralized networks, and if someone gains access to your private keys, they can steal your coins. The best crypto wallets come with advanced security features like two-factor authentication, biometric authentication, and seed phrases to protect your assets.
Second, the best crypto wallets are user-friendly and easy to use. Cryptocurrencies can be complex, and using an overly complicated wallet can frustrate and lead to mistakes. A good wallet should have a simple and intuitive user interface, using which you can easily receive/send crypto funds.
Another reason to choose the best crypto wallets is that they often offer additional features and benefits. For example, some wallets support multiple cryptocurrencies, while others make it easy for you to move crypto funds directly from your wallet. Some wallets even offer staking, which allows you to earn interest on your coins.
Last, the best crypto wallets are often backed by reputable companies with a proven track record. Choosing a wallet from an established company ensures that your funds are safe. However, safety also depends on whether you are using a software or hardware wallet.
Some popular examples of cryptocurrency wallets are:
- Ledger Nano X
- Coinbase Wallet
- Trezor Model T
- Atomic Wallet
- Exodus Wallet
There are two types of cryptocurrency wallets that you can choose from. These include:
- Hardware wallet
- Software wallet
A hardware wallet is an actual device that stores your private keys offline, making it more secure against hacking attempts. They often look like small USB drives and require you to physically connect them to your computer or mobile device to access your coins. So, even if your PC gets compromised, your coins are still safe.
A software wallet is a program or app that you download onto your computer or mobile device. Unfortunately, they are quite vulnerable to hacking attempts, since your private keys are stored online. This means that if your computer gets hacked, you can end up losing your crypto.
How crypto tools can save you money
Cryptocurrencies offer a world of possibilities for saving money, but they can also come with risks. Fortunately, there are several crypto tools that can help you save money and protect your assets, such as
- Anti-phishing software. Phishing is a very common attack that scammers and hackers use to steal your information and breach your wallet. Anti-phishing tools can help prevent these attacks by identifying and blocking suspicious websites and emails.
- Hardware security devices. Devices like hardware wallets store your private keys offline, making them less vulnerable to hacking attempts. By keeping your coins safe, you can avoid costly losses and potential theft.
- Crypto tax software. These programs can help you calculate your tax liabilities and ensure that you’re accurately reporting your crypto transactions. By avoiding mistakes and penalties, you can save money in the long run.
- Crypto trading bots. These tools can help you save money by automating your trading strategies. By using algorithms to analyze market trends and execute trades, you might maximize your profits and avoid costly mistakes.
- Crypto price tracking apps. We all know that crypto can be very volatile. By keeping track of prices and news updates, you can avoid buying high and selling low and potentially save money.
What is a trading platform, and how will it help me?
Trading platforms allow you to buy and sell cryptocurrencies. The features of a good trading platform include a friendly interface, market data visualization, and the ability to place different order types.
A good trading platform can help you by providing real-time market data, distinct orders such as limit and stop-loss, and portfolio tracker features. Such features allow you to execute trades more efficiently.
Why does it matter to choose the best exchanges?
In addition, many trading platforms also offer features like automated trading, social trading, and portfolio management tools. These can help you develop and execute trading strategies, track your performance, and manage risk.
When choosing an exchange, you’ll come across two types: centralized and decentralized. Centralized exchanges have a central authority that operates and controls them, and decentralized exchanges have no authority in the center.
Centralized exchanges offer a more user-friendly interface, a wide range of trading pairs, and better liquidity. However, they come with risks as the exchange holds your assets, making them vulnerable to hacking attempts.
Decentralized exchanges provide more security as they do not hold your assets, and transactions are directly between buyers and sellers. However, they may lack the user-friendly interface and liquidity of centralized exchanges.
Some of the top cryptocurrency exchanges (by market capitalization) include:
- Huobi Global
- Coinbase Pro
The best crypto exchanges ensure a seamless trading experience and protect your assets from scams and hacking attempts.
Scams and hacking attempts are quite common in the crypto world, and many people have lost their hard earned money on untrustworthy exchanges. The best exchanges usually have strict security measures in place to prevent any unauthorized access to your funds.
Similarly, some exchanges charge high fees for transactions, which can significantly eat into your profits. Choosing an exchange with low fees and better rates is much better in the long run.
Another aspect to consider is the total coin supply of the exchange. Some exchanges may have a limited supply of coins, while others may have a larger supply. A larger supply may indicate higher trading volumes, but may also lead to price fluctuations and market volatility.
Cryptocurrency tax calculators
Crypto tax calculators help you keep track of your crypto transactions and calculate the taxes owed on them, saving you time and potentially reducing your tax liabilities.
In addition to tax calculations, many cryptocurrency tax calculators also offer portfolio management features. You can use these tools to track your crypto holdings and monitor their performance, giving you a clear understanding of your overall crypto investment strategy.
Other functionalities of cryptocurrency tax calculators may include:
- Generating tax forms such as Form 8949 and Schedule D
- Integrating with popular exchanges and wallets
- Offering real-time tax estimates based on your trading activity
- Providing detailed reports and analytics to help you make informed investment decisions
Using a cryptocurrency tax calculator can help you stay on top of your taxes, avoid penalties, and manage your portfolio effectively. It’s important to choose a reliable and trustworthy tax calculator such as TokenTax that is compatible with your exchange and provides accurate calculations.
Crypto research tools
Crypto research tools provide insights and information on the latest trends and developments in the crypto market. These tools can also help you manage your portfolio effectively by providing real-time insights into your holdings and their performance.
For instance, a crypto portfolio tracker can help you profit by providing real-time updates on your crypto holdings and their performance. These tools allow you to monitor your investments, track your profits and losses, and make informed decisions about when to buy, sell or hold your assets. Based on this, you can adjust your investment strategy and get the best returns.
Similarly, news aggregators can help you identify emerging opportunities and potential risks in the market. Some news aggregators also offer advanced features, such as sentiment analysis and social media monitoring. These features can help you gauge market sentiment and future trends.
A block explorer is another useful research tool that allows you to view and explore data on a blockchain. It allows you to track transactions on the blockchain and see the details of each block and transaction. It can help you determine additional information, such as the current block height, the total number of transactions, and the current difficulty level.
Some popular examples of crypto research tools include:
- CoinMarketCap. This platform provides real-time data and market analysis on cryptocurrencies, including price charts, trading volume, and market capitalization.
- CryptoCompare. It offers comprehensive data and analytics on cryptocurrencies, including historical data, price analysis, and market trends.
- TradingView. This tool is very popular for technical analysis and trading ideas for cryptocurrencies and other financial instruments.
- Blockfolio. It is a portfolio management app that allows you to track your crypto holdings, monitor their performance, and receive price alerts.
As you already know by now, crypto tools and software fall into different categories. When we talk about security, using a secure hardware wallet such as Ledger Nano X is highly recommended.
Similarly, if we are talking about exchanges and trading platforms, Coinbase and Binance are considered to be the best platforms for trading and buying crypto.
If you are looking for real-time technical charts and data, then TradingView and CoinMarketCap are generally very reliable.
Last, TokenTax is one of the most reliable tools for calculating crypto taxes and generating localized tax reports.
In the end, before committing to any crypto tool or software, you should consider what your requirements and end goals are. For instance, long-term investors and crypto day traders may have different goals, and hence, will use different tools for their research and portfolio management.