Modern exchanges are making sure that end users have the tools that they need to anticipate market challenges, respond quickly to change, and carefully craft their investing strategies in this rapidly developing sector.
Here are some of the tools that traders value in pursuing portfolio building with cryptocurrencies and digital assets built on decentralized finance.
- Portfolio Tracking Tools
For transparency on an exchange, it’s important to have the ability to manage a portfolio at a glance (i.e. to see what’s up with open positions). Exchanges that offer a user-centric approach are defining the rules of this interaction with multi-language support, sophisticated user profiles and easy-to-use brokerage interfaces that provide a real view of what’s happening with assets at any given time. Tools like Crypto Pro, Kuber and Altrady deliver much of this needed functionality in ecosystems that cover the uniquely fungible nature of coin stocks.
- Tax Reporting Tools
For many investors, one of the biggest barriers to cryptocurrency and digital asset investing is the tax burden.
It’s not just that these transactions will be taxed by government agencies. It’s the inability of stakeholders to fully anticipate how the taxation will work, and how to report cost basis and other data for cryptocurrency and defi trades.
By providing accounting and coin tracking tools and more, modern exchanges help to bridge the divide: Atani allows traders to create portable tax reports in a single-click, coupled with a non-custodial trading functionality, all in one platform. Other platforms like Koinly also aggregate the information that is going to be needed at sale or beyond, allowing traders to integrate with applications such as TurboTax.
- Real-Time Alerts
In a user’s typical market session, trading is happening in real time. Throughout a market day, volatility swings Bitcoin and other assets up and down constantly. In providing trading for many cryptocurrency and fiat pairs, exchanges have to meet the bar of showing traders exactly when formative events are happening. For a miner, that might mean toggling a rig according to whether it’s profitable to mine Bitcoin or not. For a trader, many of these real-time notifications are going to involve market moves and changes in volume for particular assets across a given set of exchange environments.
By providing low latency and high availability, high-performing exchanges are keeping that user activity happening as close to the bone as possible, and it’s part of what makes a modern training terminal tick. Mobile apps like Cryptocurrency Alerting accomplish this handily. Other tools like Coindera work, too, and at places like Alchemy, engineers are figuring out how to fit in this type of notification system for users.
- Liquidity Aggregation
Liquidity is also valuable to traders, and that’s why exchanges are going to the mat to offer cross-platform environments that bring liquidity pools together. This has to be done without fragmentation or bottlenecks in order to provide an open and transparent brokerage ecosystem. The best models look like a connected webwork, with more conduits for the data that illuminates a bigger section of the day’s trading activity across platforms.
With the above types of tools in hand, traders can get better access to some of the models and strategies that drive success in the world of crypto. By streamlining the operational capacity of the user to make money and control assets, these platforms are making names for themselves in the brave new fintech world.