12 Essential Tools Every Crypto Enthusiast Should Know Abou

If you’re wanting to get into crypto, know that everything goes at a fast pace. Things are constantly changing and adapting, and you’ll want all the help you can get as you enter into things for the first time. 

This article will assume you already know the very basics of crypto, so rather than offering a beginner’s tutorial, you’ll learn about 12 essential tools you should get to grips with if you want to be successful.

Without further ado, onto point number one!

1. Crypto Wallets

One of the most fundamental digital tools you’ll need is a cryptocurrency wallet: your wallet allows you to store and send crypto and manages your private and public keys.

They come in two different types: hot wallets and cold wallets. If a wallet is ‘hot’, that means it’s connected to the internet – these are used for making quick transactions. Cold wallets, on the other hand, are managed with private keys offline – they’re more secure making them ideal for currency you want to leave alone and don’t require frequent access to. 

There are many different wallets available, so do some of your own research to discover which is most suitable for you and your needs. 

2. Price Tracking Tools

A large part of being successful in crypto is about keeping up-to-date with the current market, and price tracking tools are there to help you do that. The best price trackers provide real-time tracking as well as historical data, so you can easily compare the numbers from then to now to make the best judgment (CoinMarketCap provides this feature, for example). 

Over time, these services will help you develop the intuition you need to make concrete choices.

3. Cryptocurrency Exchanges

When it comes to actually buying and selling crypto, understanding how cryptocurrency exchanges work is key. These are the primary online platforms for digital currencies and work a lot like stock exchanges.

Of course, not all exchanges are created equally, and you’ll want to look for ones that offer high liquidity (lots of buyers and sellers trading) and have proper security measures in place given that crypto exchanges can be prime targets for hackers (two-factor authentication is a must).  Coinbase and Kraken are great choices for beginners. 

4. DeFi Platforms

A fundamental component of crypto, Decentralized Finance (DeFi) platforms allow users to borrow and lend without any intermediaries or ‘middlemen’ involved. This is highly beneficial for the end user as it means that you can engage in your activities without having the hassle of having to go through the banking system. 

For example, Yearn Finance is one of the most popular DeFI platforms available, offering similar services to banks but without all the fluff. 

5. Blockchain Explorers

Blockchain explorers are incredibly useful tools. They essentially function as a search engine that allows users to view and analyze various elements relating to their crypto activities, such as reading transactions and wallet balances. There are different explores for different types of coins: for example, if you use Ethereum, Blockscout’s eth block explorer is a powerful option for detailed insights. 

They can also help users analyze gas fees – the costs associated with processing transitions on the blockchain network.

6. Crypto Tax Calculators

If you’re dealing with crypto, tax calculators are a must. Just like regular currencies, your crypto is subject to strict regulations, and these tools help you quickly and easily do the math. Koinly, for example, has become popular for its ability to automatically calculate the tax owed by merging its features with your wallets. 

As crypto becomes more popular, governments and authoritative bodies are enforcing strict penalties for those who don’t adhere to proper practices, so tools that allow you to seamlessly generate reports are valuable assets. 

7. Yield Aggregators and Staking Platforms

Yield aggregators and staking platforms are each tools you can utilize to earn extra income. They have you participate in ‘staking’ (holding crypto in a wallet to support the operation of the blockchain) or by using other types of investment strategies. 

Essentially, these platforms offer a viable alternative to traditional storage, allowing you to gain a return on your investments while simultaneously supporting the global infrastructure.

8. NFT Marketplaces

NFT stands for non-fungible token: they’re one-of-a-kind digital items that cannot be exchanged for another of identical value (on a one-to-one basis), meaning that each NFT is wholly unique. This is different to ‘fungible’ tokens like cryptocurrency, because your one Bitcoin, for example, is always worth the same value as another person’s one Bitcoin.

Further explanation of NFTs is beyond the scope of this article, but NFT marketplaces are where you can buy, sell, and trade these special blockchain assets. Many people who are interested in crypto get into NFTs as well, so do some further research to see if it’s something you might like to explore. 

9. Crypto News Aggregators

As a crypto investor, you’ll want to be updated on the latest news as it happens, and this is where crypto news aggregators come into play. They work a lot like regular news aggregators in that they collect a wide variety of crypto-related news and centralize it, making it easy for enthusiasts to see the latest trends and important updates at a glance. 

For example, you have CryptoPanic: this aggregator offers analysis and real-time updates to help you stay one step ahead and adapt as quickly as possible.

10. VPNs

A Virtual Private Network (VPN) is something that’s becoming increasingly popular in all areas of everyday internet activity, but they’re especially useful in regards to crypto. Essentially, VPNs create a secure, encrypted connection by routing your data through a private server – this offers you an extra layer of protection for all your activities, protecting you from scams, fraudsters, and hackers. 

NordVPN and ProtonVPN are both highly regarded options, and you can go one step further by using something like Wasabi Wallet – a wallet with extra built-in security features to ensure your data remains hidden (a great pairing with a VPN).

11. Smart Contract Auditing Tools

Getting involved in crypto requires you to be savvy. As has been discussed in some of the sections above, you have to be careful what services you use and who you interact with. 

If you’re working with developers eventually and are setting up projects, smart auditing tools are another link to your overall security. These tools review blockchain code to spot any vulnerabilities before it’s utilized further, and ensure there’s a good foundation to be worked on. They can greatly reduce the risk of hacks and fraudulent attempts on the system. 

12. Web3 Browsers

Decentralized identity – that is, securing your digital identity without relying on a central authority – is at the core of what cryptocurrency represents, and Web3 Browsers are built from the ground up to support it. Browsers like Opera and Brave support high-level blockchain functionality, allowing secure access to the DeFi platforms and NFT marketplaces described above.

Web3 browsers also often come with built-in wallets and special security features, making staying safe as a beginner far easier and offering experts much greater control over how their data is used. 

A Few Closing Tips

Keep Your Private Keys Secure

Under no circumstances should you share your private keys – always store them in a cold wallet that’s for your eyes only.

Enable Two-Factor Authentication

It was touched on briefly above, but always turn on two-factor authentication for as many operations as you can. It’s an incredibly simple asset that can save you a lot of potential problems. 

Research Platforms Before Using Them

When it comes to using a new platform, always do your research before jumping in. As you’ve no doubt learned by now, crypto is much more volatile than most activities you can engage with online, so always verify the validity of whatever you’re using – the Crypto Currency subreddit is a great place to get help if you’re unsure.

Always Double-Check Wallet Addresses Before Sending Funds

This is a mistake a lot of people make and it’s easy to let slip, but it can have big consequences so far as losing assets. Always carefully check an address before you hit send.

Start Small

And finally, don’t bite off more than you can chew; you should be reading far more than you’re investing in the beginning. When you think you’re ready to purchase some crypto, only get a small amount until you can properly gauge the risks. Even when you think you know what you’re doing, there’s a certain amount of experience required before you can make lucrative decisions. Remain eager to learn, reach out for help, and make sure you have all your ducks in a row.  

Wrapping Up

This article has given you a rundown of some of the most important crypto-related tools available – but that doesn’t mean there isn’t more to discover. In fact, there’s always more to learn about cryptocurrencies, so do as much research as you can to put yourself in the best position to be successful. Good luck!