What Tools Do Modern Crypto Trading Platforms Offer?

1 3 minutes read

Modern crypto trading platforms like Binance have become more than simply a way for traders to access crypto exchanges through a clean interface; they’ve become financial ecosystems that try to provide a range of different functionalities to users. From basic tools that allow live tracking of the Bitcoin to USD price, or any other listed cryptocurrency on the platform, to educational tools and tools for automation, every tool that these platforms offer is designed to make trading crypto easier, more understandable and smoother.

Let’s take a closer look at some of the most popular tools that modern crypto exchanges provide to their users.

Table of Contents

Price Charts With Advanced Functionality

Price charts are some of the most basic tools that exchanges provide, but they are also some of the most valuable and heavily used. Modern platforms try to incorporate as many advanced features and functions into these charts as they can, to heighten their usefulness for traders. Most modern charts can be adjusted for short- or long-term views, and can include a range of integrated technical indicators, such as:

Moving Average Convergence Divergence (MACD).
Relative Strength Index (RSI).
Moving averages.
Volume indicators.
Bollinger Bands.

The easier and more integrated these indicators become, the better that traders who understand them can identify trends and make better decisions about how to trade, without needing to have 15 different windows open.

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Market Data That Updates In Real-Time

One thing that is perennially true in cryptocurrency trading is that speed matters. In particularly volatile times, prices can fluctuate heavily in just minutes. This makes it absolutely crucial that the market data that platforms present is live and adjusts itself live.

Market data such as the following is typically continuously updated by the best modern crypto trading platforms:

Recent trades.
Price movements.
Market capitalisation.
Gains and losses expressed as a percentage.
Trading volume over the last day.
Order book depth.

Once again, the more this information is delivered in a single, easily readable space, the better decisions it allows traders to make.

Notifications and Alerts

It might seem basic, but the ability to customise and set a variety of alerts and notifications about price movements and other events is very important. Most traders aren’t constantly plugged in to their trading platform, and it is common to have long-term strategies that are waiting on coins hitting certain highs or lows before action can be taken.

Notifications and alerts that let traders know when events occur allow them to quickly jump back into the market and make the necessary changes in their portfolio.

Automation and Copy Trading

In a similar vein to notifications and alerts, automation can also help traders to enact strategies without spending their entire waking life glued to their trading platform. Trading bots allow users to set certain conditions for trades to be made, allowing them to execute strategies while they sleep or are otherwise away from their devices. Trading bots are also well-known as facilitators of greater discipline, helping traders stick to strategy, rather than giving in to emotion.

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Copy trading is a different sort of automation, one at the higher strategic level. While each trader should come up with their own strategy, as only they know what their financial situation and goals are, copying the successful strategies of traders in similar positions is a time-tested tradition. As such, some modern platforms provide a certain level of copy trading functionality.

Risk Management Tools

Modern exchanges also typically give users tools to help them learn about the risks that volatile markets present, and how best to manage them. These tools can include things like:

Stop-loss and take-profit orders.
Tools for position sizing.
Portfolio performance tracking tools.
Information about liquidation prices.

The idea is that these tools should help traders to understand what sort of limits they should be establishing around their trading, and how much capital exactly they are comfortable risking at any one time or on any one trade.

Modern portfolio dashboards are often designed to give users an instant snapshot of what exactly their exposure is across different assets, and help them to understand the percentage amount of their capital that is being held in each asset.

Risk can never be removed from crypto trading, but it can be better understood and prepared for.

Research and Market News

Another truism about the cryptocurrency market, and one that can be applied to traditional finance as well, is that information is valuable. The best crypto trading venues are well aware of this, and are happy to provide a range of news and research feeds that plug directly into their platforms where they are most relevant. This allows traders to get information about things such as the following:

Announcements about new tokens.
Articles for education.
Market analysis articles.
Updates on crypto projects.
News about regulatory changes.
Upcoming relevant economic events.

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When this information is presented within the trading platform, it saves traders from needing to juggle 15 news subscriptions to keep on top of the news relevant to their coins.