Crypto investing is a technically demanding part of the market, compared to stocks or bonds. Crypto is a still relatively new market, and investors must learn how to juggle several tools before they can become competent traders.
- Choose the Right Exchange – There are many types of exchanges available in the market. Centralized exchanges, such as Binance or Coinbase dominate the market, because they are relatively easy to use and because the price you see on centralized exchanges is the price you get. Decentralized exchanges are becoming increasingly popular, because they are anonymous and secure, and new crypto projects often appear first on Defi and will only appear on centralized exchanges after they mature and succeed. Eterna Hybrid Exchange offers the best of both worlds, because it’s a centralized exchange that offers access to the top decentralized trading platforms. It may take you weeks of experimentation to find the exchange or set of exchanges that you are most comfortable with and that provide the best array of features and services.
- Choose the Right Wallet – Crypto wallets can be divided into cold wallets and hot wallets. Cold wallets, like Ledger Nano and Trezor only store your keys or seed phrases offline where hackers cannot access them. Cold wallets do not actually store crypto, which is stored exclusively on blockchains. Hot wallets, like Metamask and Trust wallet, exist only online, and can give you direct access to your crypto and the blockchains on which they are stored. Many wallets are available in the market, and its important that you choose one that meets your needs. Never give your seed phrases to anyone, as they are the keys to your crypto kingdom and once you reveal your seed phrases, others can access and control your investments.
- Find a Good Charting Tool – chart reading is one of the most important tools for successful investors. Learning how to read charts is essential if you want to become a professional trader. Anyone can learn how to read a chart, and there are many approaches for doing so. Further, there are plenty of articles and youtube videos available that teach chart reading, from A to Z. Both novices and experts depend extensively upon chart reading to define their trading strategy. Traders who use charts usually outperform those who are just guessing at the market’s next move. Chart reading is used on Wall Street and in the largest financial centers of the world. Its relatively easy to learn and a-theoretical, so you don’t need to learn any fancy finance theory.
- Find Good Market Intelligence Websites – The market is driven by information, especially if the information is new and particularly relevant. You should begin each trading day by collecting all the information possible, so that your trades will be well-informed. coindesk.com www.cointelegraph.com www.seekingaplpha.com and www.theblock.co are some of the best websites to begin your day with.
- Find Social Media Groups devoted to Crypto – Social media is often where news appears first, and it’s the best source of support. You can make friends, connections, and often talk directly to the developers of new crypto projects (and some well-established firms) on Twitter, Telegram and other social media platforms. If you are not connected to these social media groups, you are essentially out of the game. News often appears there first, and is quickly disseminated to other venues. AMAs (Ask me Anything) sessions occur on Telegram and Twitter on a daily basis, and developers will often present their projects to social media users first, before the public gains knowledge of their existence. Find good social media groups and you will be well-connected to all the action before others who are not involved in these groups. Social media connections are often the difference between success and failure in the crypto world.
The 5 tools listed above are essential for any successful crypto investor or day trader. Master them and you are well on your way to success.