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October 3, 2024
Cryptocurrency Trading 101: What Tools Do Crypto Traders Need? A Full Review
- 1. Trading essentials: the right tools to support your day trading strategies in crypto
- 2. Best crypto exchange
- 3. Using Good Crypto to find your exchange
- 4. Crypto portfolio tracker
- 5. Real-time crypto price alerts
- 5.1. How to set up price alerts in Good Crypto
- 6. Crypto candlestick charts: how to read crypto charts
- 6.1. The candlestick
- 6.2. How to read crypto charts
- 7. Сryptocurrency market data
- 8. Other benefits Good Crypto can bring you
- 8.1. Trading with Good Crypto
- 9. Summing up
Cryptocurrencies represent the birth of a financial revolution. For the first time ever, data and computational energy became valuable. Bitcoin is not only the world’s biggest computer, it’s also the most profitable asset of this age. Bitcoin is the mother of “the internet of money”, as Andreas Antronopoulos describes.
Following the birth of Bitcoin in 2008, cryptocurrency trading emerged. Only a few years later, one alternative currency after the other would enter the market. Now, speculators can trade tens of thousands of market pairs, against BTC, ETH, or simply USD.
How can you navigate yourself in this fast-paced environment? How do you find the newest and fastest-growing markets? How can you create an overview of all your exchange accounts?
This article outlines the most important tools you need to get started with trading cryptocurrencies. Tools that help you with creating an organized analytics, as well as a profitable decision making and strategy execution environment. This trading 101 article is dedicated to making you feel less overwhelmed in the hectic crypto world and highlight the best way to trade cryptocurrency.
Good Crypto offers you all the tools in one place. It’s the only application you’ll ever need. It’s with you in your pocket and available any time of the day. No matter how you interact with the market, as a long-term investor, or a short-term crypto trader, you will find great benefit in using this free application.
We’re convinced that this application will make it possible for you to make profits easier, and it will create a more peaceful relationship with trading cryptocurrency even if you feel like just checking out crypto 101. So, if you’re eager to know how to trade crypto successfully, welcome to cryptocurrency trading 101 by Good Crypto.
Trading essentials: the right tools to support your day trading strategies in crypto
Before exploring every aspect of cryptocurrency trading, it’s important that you approach the markets with a plan. The difference between a successful beginner in trading and a losing trader is your cryptocurrency trading strategy. Consider reading our Portfolio Management article, and decide the size of your investments carefully.
Proper cryptocurrency trading strategies are based on a set of rules that you consistently respect. This is the key to a profitable, long-term trading system. Let’s touch on a few important subjects of what was described in the Portfolio Management article.
To start, you decide the total amount of money you want to invest.
Secondly, you decide if you want to be an active trader, a passive investor, or both.
Once you have decided this, you can start going into depth, and learn about how to create the best trading strategies.
Listing out a few important elements of a successful cryptocurrency strategy:
- Create a plan that pre-decides the size of your total investment
- Use liquid exchanges, and understand liquidity
- Diversify your investments
- Enter markets with the Dollar-Cost Averaging method
- Understand basic technical analysis indicators (MAs, RSI, Bollinger Bands, etc)
- Trade with proper risk management, following the 1% risk rule
- Use Good Crypto, the only tool you need for tracking your portfolio performance and performing
- successful trades with risk management
This list should help you on your way. It’s especially important to understand basic charting and technical analysis indicators when creating a day trading cryptocurrency strategy, or swing trading cryptocurrency.
We’ll continue covering the most important cryptocurrency tools, along with the best crypto trading app on the market.
Best crypto exchange
Anyone can sign up to a cryptocurrency exchange and start trading. Most people that are trading cryptocurrency have accounts on different crypto exchanges. Why? Because each crypto exchange has its own perks, and when you want to trade a certain cryptocurrency you simply create an account on the platform where it’s traded. And, very important, a cryptocurrency exchange has to be liquid.
One of the most important aspects of a good Bitcoin exchange is liquidity. Liquidity will decide how much you can buy or sell without influencing the market too much. High liquidity is good, while little liquidity can have a negative influence on the price. Good Crypto has published an article on liquidity and even created a Liquidity Checker.
If you want to know where to buy Bitcoin, this page will give you a good indication! The top crypto exchanges are usually providing the best liquidity. But the best places to buy cryptocurrency also need to offer enough altcoin markets or at least the ones that you want to buy or sell.
As you can tell, identifying the best cryptocurrency exchange depends on what you find most important. Either way, we will provide a shortlist of the best crypto exchanges of today:
- Coinbase Pro
- Binance
- Huobi
- Bybit
- Uniswap
- Kraken
- BitFinex
- OKX
- KuCoin
It’s important to clarify the difference between a Centralized exchange (CEX) and a Decentralized exchange (DEX). In the above list, every exchange is a CEX, except Uniswap. So, what is the difference?
A CEX acts like a bank, it controls the keys to your funds and has ownership over your currency. It contradicts the cryptocurrency philosophy by taking away the custody of your Bitcoin, or altcoins. However, a CEX is generally much faster and cheaper for trading. Often a CEX will offer you a way to transfer your fiat money from your bank into the market, making it the first bridge to interact with cryptocurrencies.
A DEX will never take control over your funds, because you trade peer-to-peer with other participants, straight from your blockchain wallet. It’s not only corresponding with how crypto works but also aligned with the idea of Satoshi: to own your financial value at any time by owning the keys to your blockchain wallet. This is what the digital financial revolution is all about.
You can learn more about Decentralized Finance (DeFi) in crypto here.
Using Good Crypto to find your exchange
How can you find the best market and the best cryptocurrency exchange for your favorite altcoins?
When opening the Good Crypto application, you can explore the never-ending list of cryptocurrencies in the Prices section. When opening a market, you find a list of exchanges providing this cryptocurrency. Do you wish to trade for BTC or another currency like EUR or ETH? Press the tab, and you’ll see where to find a market, as well as an asset price and trade volume of each market updated in real time.
If you have created your cryptocurrency exchange account, you can link it to Good Crypto and trade instantly from your phone. If you haven’t created an account on one of the top cryptocurrency exchanges yet, you can do so via Good Crypto. By doing this you secure a decent discount on trading commission for yourself. Go to Settings -> Exchanges -> A desired crypto exchange -> Create an account on… That’s it. Fast and simple.
Crypto portfolio tracker
No matter whether you are HODLing, trading, or both, a portfolio tracker is one of the most important tools for your cryptocurrency portfolio management.
The best crypto portfolio tracker needs to provide you an automated overview that is sexy and in the meantime instant. As described in our Crypto Portfolio Tracker article, Good Crypto has both of those features. Moreover,
- Every trade made is instantly updated and reflected in your portfolio history
- The value of your crypto portfolio can be shown in whichever currency you want
- Good Crypto supports over 35 exchanges, not only to track your balance but also to trade on
- The free app includes blockchain wallet tracking (on BTC, ETH, NEM, XYM, and Celo networks), and thus also tracks your passive investments or your DEX trades
- The portfolio tracker interface is pretty yet advanced and shows every trade made
- It’s the best free crypto portfolio tracker on the market that allows trading with every account that is connected
- The app provides you many more crypto tools along with the best portfolio tracker
- The following exchanges are supported by Good Crypto: Binance, BinanceUS, Bitfinex, Bitflyer, Bithumb, Bitmex, Bitstamp, Bittrex, Blockchain.com, Bybit, CexIO, Coinbase Pro, Crypto.com, Exmo, GateIO, Gemini, HitBTC, Huobi Global, Indodax, Kraken, KuCoin, Kuna, Liquid, OKex, Poloniex, and Yobit.
Real-time crypto price alerts
Can you trade crypto 24/7? You may notice that timing is one of the most important things when interacting with crypto markets. Yet, it’s impossible to track every single move. That’s why one of the best cryptocurrency trading tools is crypto coin price alerts, which are received as an instant push notification on your smartphone. Tradingview alerts can help you, but they only provide one free alert, and the monthly plans of the app are very expensive.
There’s a few types of notifications that can give you a real edge while trading crypto.
- Receive a notification when markets move intensely. For example when BTC or ETH makes a 5% move in either direction.
- When an exchange lists a new market.
- When you have received a deposit on your blockchain wallet.
- When your trade orders are filled.
- A daily summary.
Good Crypto offers all of these notifications, and more.
A BTC price alert will make sure you look at the market exactly at the right time, and not waste your energy waiting for the perfect moment to engage with it. When you get price alerts, you can simply make opportunities come to you. Getting notified when markets move intensely, you can go in on the action and trade volatility.
Notice: The Good Crypto team released alerts based on technical indicators. Smart TA Signals use market data and analyze each coin based on 25 Indicators, predicting further crypto price trends or direction with the main goal – help traders decide where to enter or exit the market.
How to set up price alerts in Good Crypto
Let’s look at the Settings section of the application in the Alerts tab, and explore how to get price alerts for one of the thousands of markets that the app provides.
Different types of Alerts are provided:
- price change alerts,
- a market or portfolio summary,
- order fills,
- or even new exchange listings!
Good Crypto crawls the code of exchanges, which makes it able to regularly notify you of listings that aren’t even announced officially. The advantage given makes it very profitable for you.
The Good Crypto team is constantly up-to-date with the latest market trends. This is reflected in the DeFi alerts basket, for which you can enable notifications of significant price changes. On the left, you see that daily summaries can be programmed for any time you want.
Moving on, let’s take a look at how you can enable price alerts. Find the cryptocurrency you want to program an alert for. In this example, Polkadot (DOT).
When picking a specific market, make sure you go for the market you will trade. Prices can vary depending on the exchange.
Next, enter the price you want to set the alert for. Once decided, you can choose to repeat the notification. Every time the price crosses 6.7 USD, it will be triggered. You can change the cooldown to either 5 minutes, 30 minutes, 1 hour, 6 hours, or 1 day.
Do you thrive on market volatility? In that case, you can enable price notifications solely based on strong price changes. Or do you want to trade a breakout? You can place notifications above and below a channel, and get notified when the price breaks up or down.
Crypto candlestick charts: how to read crypto charts
Charts are like a window into the markets. It’s the historical representation of the price of an asset. The oldest crypto trading chart is Bitcoin, going all the way back to 2009. The Bitcoin candle chart is the chart that represents the whole cryptocurrency movement.
A candlestick chart is important to understand, and before we can get an idea of how to read crypto charts, it’s important to know how to read candlesticks.
The first candlestick charts were created in Japan, by Mr. Homma Munehisa, a famous and very successful rice trader from the 17th century. According to Mr. Homma, emotions and psychology are the foundation of price changes. Eventually, around 1980, candlestick chart flew over to the USA, and became the worldwide standard for showing the price history of any kind of market.
Let’s take a look at some examples and how to read candlesticks and specifically how to read cryptocurrency charts with the candlestick charts.
Usually, candles are green and red. However, some traders prefer to change the colors to avoid having a psychological effect. Green often represents good, and red represents bad, which can cause distraction while trading.
The candlestick
When looking at a “daily” chart, one candle represents 24 hours of data. When looking at an hourly chart, one candle represents 60 minutes of data, and so forth.
This example shows 24 hours of data per candle. A candle is green when the Closing value is above the Open value, and the market has moved in a positive direction.
A candle is red when the Opening price is above the Closing price, because the market moved down during these 24 hours of trading.
The thin lines of the candle which do not have a body, are called the wick. A wick is made when the market moves in that direction, but eventually turns into the other direction. In the example show, the price moved above the open price of the last candle. It used to be green, too! But then the market went back down, it made this once green area a wick, and the candle became red when the price eventually moved below it’s Open value.
Don’t forget that candles can easily change color if they aren’t closed yet.
How to read crypto charts
Crypto trading charts are known for their volatility. This is exactly what attracts speculators.
At the bottom of the chart, we see the time axis. The vertical axis represents the value.
TIP: dragging your finger along an axis will scale it up or down!
Would you like to learn how to see support and resistance levels? Read our guide!
Would you like to dive into RSI, Moving Averages, or the Ichimoku Cloud indicator? Click the links for our guides!
Tapping the “+” button in the menu will give you drawing options, and much more. Tapping the “fx” button will open a whole world of technical indicators! Good Crypto offers everything you need for crypto trading.
Сryptocurrency market data
The growth of the cryptocurrency ecosystem seems to be unstoppable. Cryptocurrencies are being created every day, and keeping track of every one of them is impossible. Undoubtedly the versatile and well structured market data is one of the main pillars of profitable cryptocurrency trading. Luckily, Good Crypto keeps track of all the cryptocurrency market data. Coins, value, price change, market cap, everything is aggregated in an overview.
When going to the Prices tab in the application, you can find the live crypto market data. The top cryptocurrency is decided largely by the market cap and also takes into account the quantity and quality of the exchanges the coin trades on. Bitcoin as “the king” has the first position.
TIP: by swiping a certain cryptocurrency, you can easily add it to your watchlist or program an alert!
When opening a certain asset, you receive details of the market cap, the total supply as well as the circulating supply, and the worldwide 24h traded volume.
Are you specifically looking for liquidity? Good Crypto has created a Liquidity Checker!
Below this information, you find every market that exists which trades the currency, and you can filter it by its pair. Tapping the exchange icon will take you to the trading page of that specific pair with live crypto charts.
Other benefits Good Crypto can bring you
When it comes to trading and interacting with the market itself, Good Crypto performs like no other. The application offers traders the best trading engine on the market, live order books, and full trading history.
Trading with Good Crypto, a rundown:
- Runs across 3 platforms (iOS, Android, Web)
- Both spot & derivatives can be traded
- Normalized (works across all exchanges in the same way)
- Advanced order types:
     – Stop Market
     – Stop Limit
     – Trailing Stop
     – Trailing Stop Limit
     – Reverse Trailing Stop
     – Reverse Trailing Stop Limit
     – Auto Take Profit
     – Auto Stop Loss
     – Trailing Take Profit
     – Concurrent Take Profit and Stop Loss - All conditional orders do not lock your balance until triggered allowing multiple orders/grid trading, etc.
- Sophisticated trading bot strategies, such as DCA, Grid, and Infinity Trailing
- Smart technical analysis signals
- Order execution and status change alerts
Summing up
If you find the right tools, cryptocurrencies become less overwhelming and less chaotic. With Good Crypto you can replace all your exchange apps, your price trackers, your alert apps, and portfolio apps with a single one and have day trading cryptocurrency with profit.
The app informs you when the market is volatile, when your orders are filled, or when a new project is being listed on a crypto exchange. This is the edge that you need to get one step ahead of the rest of the market.
The application is constantly being updated with new features and the developers listen to specific requests. The basic functionalities described above are completely FREE.
Good Crypto PRO is available for $9.99/month or $79.99/year. Lifetime access is offered for $299.99.
Find Good Crypto on both the iOS App Store and the Android Play Store and discover the most advanced cryptocurrency application on the market!
Do you have any questions?
Connect the public chat room in Telegram and ask anything, 24/7.
Get the App. Get Started.
Keep your portfolio in your pocket. Trade at any time, from anywhere, on any exchange and get the latest market insight & custom notifications
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March 17, 2023
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