Nov 2023#Traders#MarketResearch

Must-Have Trading Tools for Crypto Traders –Market Research

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Authors

Marat Gizatullin

Analyst, R&D

Ksenia Alikova

Analyst, R&D

Alexey Sidorowich

Partner

Alisa Tkach

Editor

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9 min

 

$40 to $60 billion was the remarkable monthly turnover for prop-trading platforms (banks and other financial organizations that trade with their own funds) in 2023. 

Hedge funds preferring less risky strategies are catching up with $45 to $56 billion per month. What is more, 60% of prop-trading platforms intend to expand their cryptocurrency trading, with 15% expecting a significant increase in crypto trading.

Meanwhile, big trading enterprises are also seeing a spike in crypto trading. About 8% of institutional traders now work with crypto, and at least 20% are planning on giving it a go. 

We’ve talked to dozens of traders, and the majority of them admitted that the lack of professional crypto trading software is one of the biggest problems in the current market. In this guide, you will discover the most popular solutions that crypto traders are using, as well as the most common problems they face.

Burnout and other major issues

Lack of time and inability to sift through mountains of historical data, including tick-by-tick quotes, are two of the most prevalent complaints from traders. Backtesting, analysis, and idea generation usually take a lot of time. Risk management, which is often done manually, is yet another major concern. 

The majority of the traders we spoke with cited burnout as a big concern, and all of the aforementioned factors contribute to it. Traders often struggle to keep a high-performance indicator running smoothly.

In addition, several tools are typically required for analysis, backtesting, and transactions; thus, there are no firm universal solutions. Only bitcoin exchanges and aggregators provide somewhat comprehensive solutions. 

Software solutions

Backtesting and data analysis software like TradingView and MetaTrader 4 and 5 are the most common options. 

Data analysis in several markets, including futures and cryptocurrency, is done using TradingView. When dealing with cryptocurrency, you'll need to hop between TradingView and your exchange, and it's not ideal for backtesting. 

MT4 and MT5 might work great for FOREX but are not too convenient for crypto assets.

Psychological overload, risk management, trading journal 

There is still no comprehensive solution to the pressing issues of psychology and risk management. Several choices are available in the present market. 

 

Edgewonk is a tool for note-taking, mental health tracking, and trading performance. A cloud platform allows users to import reports from MetaTrader, provides statistics, and has the ability to add tags. However, the interface is overloaded and hard to use.

Edgewonk is only suitable for professional traders. 

In addition to a trade optimizer and a strategy backtester, the platform lets users add any markets they like. It also offers a simulation of account growth and decline based on current statistics.

Advantages:

  • Availability of a backtester and modeling of scenarios for “future” portfolio growth;
  • Connected to different markets (Forex, crypto, etc.);
  • Cloud solution with access to all devices;
  • Emotional analytics;
  • Visualization of risk and trading efficiency;
  • Generation of “tips” for optimizing trading;
  • Affiliate program.

Disadvantages:

  • Lack of demo account and monthly subscription; 
  • Needs large amounts of data for effective work. 


Tradevue is a trading journal with a strong analytical system designed for businesses.

It focuses on trading firms, and the software is fully adapted for them.

Tradevue provides a plug-and-play solution for B2B companies, including API, onboarding, trader reports, an admin panel, comparison reports, and more. Users can share their signals, trades, and posts.

Advantages:

  • Full integration into a trading company: management, restrictions, etc;
  • Free version;
  • The opportunity to share results and make forecasts directly on the website;
  • Wide functionality for trading analysis.

Disadvantages:

  • No product demonstration directly on the website;
  • Gets more expensive over time.

 

TradersDiaries is a free service for storing trading data.

It is primarily aimed at individual traders, including beginners.

The program has a signal service and a built-in cryptocurrency screener that chooses volatile instruments automatically.

Advantages:

  • It’s free; 
  • Simple interface and the ability to share your transactions;
  • Access to signals directly from the interface and currency screener;
  • Emphasis on security and anonymity.

Disadvantages:

  • Poor functionality;
  • Primitive website.

Analyzing big volumes of data 

FX replay helps with backtesting and assists when working with large amounts of historical and tick data. It’s based on TradingView via API, making everything familiar and connected. On the negative side, you will not find any session indicators, news or events featured, or a way to save templates on this platform. 

DOM (Depth of Market)

Bookmap is a platform for visualizing market liquidity that creates a dynamic heat map based on orders from exchanges.

Suitable for professional traders, the product is arguably complicated for beginners.

​​DOM is exclusively supported by Rithmic and CGQ providers and is only available as part of the platform's most expensive subscription, Global Plus. 

Advantages:

  • Free version;
  • Training materials and courses on working with the platform and market;
  • Mentors and teachers;
  • Can be connected to many data providers (futures, stocks, crypto).

Disadvantages:

  • Requires powerful hardware;
  • Complicated UX;
  • Lack of mentors’ commitment;
  • Does not connect to all declared data sources;
  • Slows down in case of high volatility.

 

CScalp is a completely free platform with the ability to trade on several platforms simultaneously (multi-account). 

The product is suitable for all traders.

With just one click, you can access up to forty different order books and charts. A total of six exchanges are compatible with CScalp: MOEX, Binance, ByBit, Bitmex, and another one. 

Limit, market, and stop orders are available, and non-position stops are only available on Binance. The graphs are standard and simplified, and cluster analysis is implemented. In addition, you have the option to integrate with the trading journal and a window for transactions. 

Advantages:

  • Completely free;
  • Many connections;
  • Free training;
  • Good reputation;
  • Access to signals from other traders.

Disadvantages:

  • Minor technical problems;
  • Poor functionality and interface;
  • Cups are only available for Windows.

 

Tiger.trade enables the ability to trade all types of assets: crypto, stocks, futures, forex pairs, and options.

It is more suitable for experienced traders since many features may be difficult for beginners to understand.

The platform offers a dynamic cup with wide customization options. The order book has an information panel that shows the position's price and volume, along with transactions. You can select accounts, configure the chart area and levels, and perform cluster analysis. The platform has a risk management system (limit limiter), a deal simulator, a deal feed, an analytical and statistical module, and more. 

Advantages:

  • Extended functionality;
  • Strong partners;
  • Good and confident presentation;
  • Active team;
  • Free crypto plan;
  • Related by-products.

Disadvantages:

  • Occasional freezes;
  • Complicated UI/UX.

Algorithmic trading 

Algorithmic trading is popular among institutional and other large traders who build their software. However, there are a few solutions that can help beginners get started with algo trading without incurring high development costs. 

3Commas is a platform optimized for making money at any market phase.

It is suitable for both individual traders, beginners included, and B2B.

3Commas has options, DCA bots, and a separate enterprise program. It features the ability to create auto-balancing portfolios, copy trading, and notifications.

Advantages:

  • Tracking app for iOS/Android;
  • Marketplace with signals;
  • Demo account and option bots;
  • Advanced analytics;
  • API integration into your software;
  • Access to manual trading, trading journal, crypto signals.

Disadvantages:

  • Poor technical support;
  • Problems with canceling subscriptions;
  • Expensive for traders with a small turnover;
  • No PC app.


 Cryptorobotics enables manual and algorithmic trading with a direct connection via API.

It is suitable for B2B, but individual traders may find it not so useful.

Apart from the WL franchise for B2B clients, the platform has an autofollowing bot for trades based on signals from analysts. It also offers copy trading, AI bots, risk management bots, and smart orders.

Advantages:

  • Apps for all platforms;
  • Trial version;
  • AI bots learning;
  • Crypto signals and copy trading;
  • Solutions for B2B clients; 
  • Ambassador program.

Disadvantages:

  • The website needs to be improved;
  • Occasional freezes; 
  • API crashes.


Cryptohopper is one of the most solid algo trading platforms with simple trading automation.

It is suitable for all levels of traders and provides a social trading platform for beginners as well as no-code bot creation for algorithmic traders 

Cryptohopper provides several useful features, such as a backtester, social trading, AI-powered bot training, the ability to link multiple exchanges, and arbitration as an option.

Advantages:

  • Affiliate program and trial version;
  • Mobile app;
  • Loyalty program;
  • Access to the API;
  • Academy. 

Disadvantages:

  • Additional payment for signals;
  • Poor technical support.

Newsfeed

To make educated and prompt trading decisions, traders utilize newsfeed platforms to keep themselves updated on trends and events that may affect financial markets. Artificial intelligence has just been introduced to a handful of these platforms.

Uptrends.ai is a platform for filtering news, tracking market sentiment using AI, and automatically identifying news that affects the market.

It is suitable for news traders.

Advantages:

  • Free trial version;
  • Low cost (from $10);
  • Extended functionality;
  • Custom notifications.

Disadvantages:

  • Not all sources are currently connected.


 Newsquawk provides real-time audio news with the ability to communicate with a team of analysts.

It is suitable for B2B and individual traders.

Advantages:

  • Trial version;
  • Filtering news and sources through analysts;
  • Direct communication with analysts;
  • Access to market research and economic calendar;
  • AI for media monitoring and Twitter Scanner.

Disadvantages:

  • Restrictions on individual settings;
  • High price.

 

Tradeui’s entire product ecosystem is built on AI.

Not too relevant for B2B clients, the platform might be useful for news traders.

Advantages:

  • Ecosystem uses a news feed, so a trader can combine the benefits of several products;
  • Trial version.

Disadvantages:

  • Cannot use the news feed separately.


 Benzinga Pro is a fully-fledged trading software with exclusive news from Benzinga.

It is suitable for professional traders, including beginners, although the interface looks overloaded.

Advantages:

  • Extended functionality; 
  • Exclusive news;
  • Mobile app;
  • Can choose a plan with mentorship.

Disadvantages:

  • The trial version was removed; 
  • High price.

Cryptocurrency exchanges

Without getting too bogged down in the cryptocurrency exchange scene, we will highlight the most important aspects of the platforms that are not as well-known as Binance, Bybit, Kucoin, and Huobi. 

With a 90% market share of options on BTC and ETH, Deribit is an institutional-grade cryptocurrency derivatives exchange that enables the creation of a test environment.

When it comes to major cryptocurrency exchanges, Bitfinex boasts of being the most liquid and longest-running. It charges no commissions when listing new tokens, and provides infrastructure for institutional clients and access to Market Synergy.

Bitmex specifically caters to traders who deal in crypto derivatives, providing an insurance fund to prevent the automatic closure of liquidated positions. The platform offers derivatives with leverage x100 and increased security.

iMax Digital presents itself as a cryptocurrency exchange for institutional clients. A regulated exchange (GFSC) built on LMAX Group's own and proven infrastructure, it offers low latency (90 µs) and high throughput (100K m/s). It also promises high security and “deep” institutional liquidity, while its orders are measured in microseconds.

Conclusion 

Although there’s no lack of trading software, it is scattered and inconvenient. The psychological aspect is crucial, but trading journals, the only tool that helps currently, only provide a partial solution. Understandably, not all traders are disciplined enough to keep them up to date. Therefore, not only do large companies need systems of external control and risk management, but also private traders must monitor their actions, keep logs, and track their progress.

These days, there are a plethora of innovative options to consider, such as algorithm software and artificial intelligence neural networks that can assist with news selection. 

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