The cryptocurrency market is extremely complex and highly volatile, causing confusion for newcomers. Therefore, equipping useful tools will help a lot for researching, as well as storing, buying, selling and trading, help you better understand the crypto market, protect your assets and trade more effectively.
Here are the 5 tools you need when you join cryptocurrency market: cryptocurrency wallet, crypto tracking tools, Telegram, Google Authenticator, và block explorers.
Just like a normal wallet you use to hold cash, crypto wallet is the wallet used to store your cryptocurrencies. Each crypto wallet has at least two keys (multisig wallet may have more): a public key and a private key. Basically, the private key is a password, and the public key is an address that people can see and send coins/tokens to you. You must protect your private key, because if anyone has your private key, they can access to your crypto wallet, and you will lose money. You should not provide your private key to anyone, nor store it on a cryptocurrency exchange (the weakness in keeping the private key secure is one of the factors that contribute to theft and scams related to cryptocurrency).
There are 2 types of crypto wallet: hot wallet and cold wallet. Each type has its own advantages and disadvantages, so make the choice that is right for you.
A hot wallet is used online through platforms who offer the storage services. In hot wallets, the user entrusts their private and public keys to the platform who then manages and secures both keys. It is not recommended to leave large amounts of cryptocurrencies in a hot wallet as the systems could be vulnerable to hacking. It is also advised that you do thorough research into the wallet provider before signing up – there are malicious scam projects which are looking to steal funds from vulnerable users.
A cold wallet, on the other hand, is entirely offline. Generally, a cold wallet can come in software forms such as apps which are used on a computer or smartphone, or as a hardware device, which is plugged in but remains offline. Cold, hardware wallets are considered the most secure method of keeping your cryptocurrencies safely stored.
Criteria when choosing a crypto wallet
Crypto wallets need the following factors to ensure the security and good for users.
- Private key: Defined as a password for you to login to your crypto wallet. And of course, make sure that only you know your private key.
- Easy to use: Has a friendly interface, especially fast speed.
- Development community: There is an active development community and long-term support.
- Backup and security: This is a necessary function when customers want to protect their accounts better and more flexible.
- Compatibility: The wallet must be programmed to be compatible with the current popular operating systems such as Windows, Linux, mac, Android, iOs.
Make sure the crypto wallet you choose meets the above criteria before selecting. If it does not meet the above requirements, you should consider more carefully.
Here are some of the best crypto wallets:
- Hot wallet: Coinbase, Blockchain.com, CoinPayments, MyEtherWallet (MEW), Trust Wallet, Tiktakbtc
- Cold wallet: Trezor, Ledger Nano S, Keepkey
Crypto tracking tools
In a volatile cryptocurrency market, we certainly need tools to track the market: price history, trading volume, capitalization, social network updates of coins, etc.
Here are some of the most popular crypto tracking tools:
- CoinMarketCap: CoinMarketCap is one of the most useful sites for getting an overview of the cryptocurrency market. CoinMarketCap lists the market cap, price, volume, supply, 24-hour price change, a graph of that price over 24 hours. In addition, CoinMarketCap also provides general information, social network updates of coins/tokens, trading volumes of exchanges, etc.
- Coin360: Coin360 is a project of CoinTelegraph, the world’s leading blockchain and cryptocurrency news site.
- Other prominent websites: Onchainfx, Coincodex, CryptoCompare, Bitinfocharts, Coincheckup, Coingecko, etc.
Telegram is a free cross-platform messaging app that may also be regarded as a combination between Whatsapp’s messaging speed and Snapchat’s security. Telegram is currently considered the hottest messaging app in the world, integrated across multiple platforms and operating systems.
Telegram is widely used in the blockchain and cryptocurrency world.
Another tool you must have is Google Authenticator application on your smartphone. This application creates the code used to login to any account of any application, adds an extra layer of security to your account.
A block explorer is an online tool to view all transactions that have taken place on the blockchain, the current network hash rate and transaction growth, and the activity on blockchain addresses, among other useful information. (CoinMarketCap)
With a block explorer, you can explore recently-mined blocks and transactions in any block that has attached itself to the blockchain.
You can also check the history of any public cryptocurrency address. This means you can audit the numbers of transactions it received, check its balance, etc.
Some block explorers contain data on the biggest cryptocurrency transactions of the day. You can also find out which mining pool found the block.
The tool can also show you a blockchain’s first block, i.e., its genesis block.
“A block explorer allows you to explore the whole entire blockchain of the platform you are using.”
Here are the Top 5 block explorers today: