Cryptocurrency trading is more significant than ever and, with a total market capitalization valued at $155 billion, it’s showing no signs of slowing down. The digital asset market now comprises a broad range of cryptographic assets that include stablecoin, security, reward, and utility tokens.
This wide range of assets makes the market even more attractive to investors, especially those with limited access to traditional capital markets, to attain investment exposure to asset classes they are usually unable to access.
The trend, however, started with bitcoin, which was the first decentralized currency and is now valued at $6 billion of daily online transactions. In fact, many businesses today accept many kinds of cryptocurrency as a means of payment for goods and services.
If you’re interested in cryptocurrency and want to be a part of this massive market, then you’ll need to invest in a useful trading tool. Many excellent crypto trading tools can help you succeed at crypto trading and ensure you get the hang of it quickly.
Where these trading tools are concerned, there are certain features you need to look out for. Here are a few factors that can help you choose an excellent crypto trading tool:
Some people would prefer sharing their crypto wallets with other users, requiring confirmation from all parties when a transaction needs to be configured. Known as a “MultiSig” account, this feature is comparatively new and grants users the ability to set up several private keys for one wallet. It’s an excellent option for wallets owned by multiple business partners or family members.
This feature is critical in today’s fast-paced world. Your wallet should be accessible across different platforms and if this is really important to you, then you need to find out if it’s possible on the tool you’re exploring.
A lot of people use different wallets on multiple devices to secure their assets because this helps them ensure that if one wallet has security issues, their entire chunk of savings isn’t compromised in one instance.
Determining how long the company has been operating for, who runs it, and who holds the private keys are all crucial factors in determining its reputation. Additionally, it’s also essential to know how securely your data is stored on its server and whether it’s been vulnerable to any previous incidents of cryptocurrency losses or insider hacking. These issues could occur to faulty software or poor data management practices. Regardless of the reason, though, it’s essential to do your due diligence in selecting the right one.
Another critical factor that determines which crypto tool you need to select is the technology it uses. Third parties are allowed to review the codes of open source wallets. This freehand means that if something is wrong with the code, then it will be public.
Many cryptocurrency users aren’t comfortable using wallets with proprietary codes due to the barriers involved. In fact, new wallets may potentially have issues and may not be ready for public use.
Additionally, the technology also involves how your private key may be stored, whether it’s held by you or on the server. Storing it on the server is definitely a riskier option. Moreover, it’s also crucial for the trading tool to use two-factor authentication to maximize the security it offers you.
Lastly, many cryptocurrency holders are also concerned with privacy. If it’s something that you’re interested in, too, then you should take a look at the FAQ to determine whether your chosen wallet can work over TOR without any issues.
The ability to convert cryptocurrencies is a vital integration your wallet should ideally have. With this feature, you can trade between two cryptocurrencies directly, such as bitcoin with ethereum and vice versa.
The cryptocurrency market is quite volatile as prices change rapidly. Hence, it’s for the customer service of any platform to be extremely responsive in case something goes wrong. This aspect is crucial for cryptocurrency exchanges.
When you’re conducting research, you should find out what the customer service experience has been like for other customers since this could potentially get frustrating in case of unforeseen circumstances.
QR Code Scanner
If you’re in the search for a mobile wallet, then it must be equipped with QR code features. An excellent mobile crypto wallet should have the ability to generate and scan QR codes for coin transfers. This QR code prevents the hassle of typing out a long public key for money transfers.
Hardware failure is a common issue and, unfortunately, can happen to anyone. In this case, to prevent yourself from losing all the progress you’ve made, it’s vital to opt for your wallet to be equipped with a backup mechanism in place.
Several exchanges and wallets give you the flexibility to work with various cryptocurrencies on one account. Knowing which cryptocurrencies are supported is something you should know before you set up a new wallet or verify your account. While some wallets are only compatible with mainstream altcoins, others are purpose-built for one specific cryptocurrency.
Conducting extensive research is a crucial aspect of selecting the right crypto trading tools to jumpstart everything. By, first, determining what you require and what are the best options available, you can easily find a trading tool that matches your needs and helps you achieve your goals.