When you’re just starting your crypto journey, you may feel lost. You don’t know what to do, and there’s no one to ask or no tool to help. Didn’t this happen to all of us in the beginning? If you’ve been struggling to find the right tools, then read thoroughly, and you may find just the answers you’ve been looking for.

Firstly, it’s important to emphasize that tools not only are a way to get an edge in the market but can also save you money and let you spot scams before you fall for them. That’s why without the right tools you’re doomed to fail. So as not to let this happen, let’s explore the available crypto tools and why you should utilize them.

Crypto wallets

The app you’re going to use every day is your crypto wallet. While your funds are stored on the blockchain, it allows you to access and manage them. The wallet of your choice will be dependent on what you will use it for.

Cold wallets

If you plan to store Bitcoin for a long period of time and leave the funds untouched, a cold wallet, also known as a hardware wallet, like Ledger or Trezor, will be a perfect match. It offers unparalleled security since all your assets are stored offline, and in order to perform a transaction, you need to physically approve it. However, it may be bulky and not come in handy when you send coins every day.

Hot wallets

On the other hand, hot wallets like Exodus allow users to DCA crypto on a daily basis and manage their portfolios efficiently. Despite being extremely convenient, they are not the best when it comes to security, and hacks sometimes happen.

Hot wallets are more convenient, but cold wallets offer better security.

Multi-coin wallets or network-specific wallets?

Hot wallets are also divided into multi-coin wallets, which support a wide range of different cryptocurrency networks and enable you to use them as your go-to app for crypto. Then there are also network-specific wallets like Metamask or Phantom. These wallets tend to focus on that blockchain and provide you with different functionalities like staking, DEX routers, NFT galleries, and others.

Crypto exchanges

You may receive a crypto airdrop if you’re lucky enough, but the conventional way of acquiring crypto is by buying it. In order to purchase your first crypto, you need a cryptocurrency exchange like Binance, Coinbase, or Kraken, which act as a middleman between the buyer and seller. Their business model is focused on generating fees, which are a percentage of their volume.

Decentralized exchanges

Crypto is all about freedom and enabling individuals. DeFi and decentralized exchanges called DEXs are two of them. These exchanges are not regulated, and there are no KYC procedures. You may swap how much you want whenever you want, and nobody can stop you.

A better way to buy crypto

To get your hands on your first crypto, you may also alternatively use an onramp platform like Swapped.com, which supports various payment methods, and you get your crypto assets delivered in minutes. Click here to make your first purchase.

Price tracking

No matter where your coins are sitting—whether it’s an exchange or a wallet—you would probably like to track the value of your investment. After all, what’s the point of investing if not growing your wealth?

There’s a multitude of tools available for you to choose from. CoinMarketCap and CoinGecko have built-in portfolio trackers, but if you feel like experimenting a bit and expanding your horizons, on-chain trackers like DeBank or Nansen can be useful. Their possibilities aren’t endless, however, since these platforms mainly focus on EVM-compatible chains.

Educational resources

As a beginner, your top priority should be learning and educating yourself. The meaning of DYOR, which is a popular saying in crypto, is do your own research. Still don’t see why it’s important? Think about learning as an investment in yourself that can help you prevent losing money in the long run.

Social media as a source of knowledge

Watching YouTube educational videos from trusted sources, such as our channel, is a great starting point. Later you may move on to reading X and Reddit posts as well as engaging in conversations, which can be beneficial to your knowledge development.

Influencers—a double-edged sword

Following trustworthy influencers may be advantageous in many realms as long as you remain skeptical. Being self-interested is a natural quality of humans, and even the ones you think are reliable and noble may have hidden motivations and biases, like having personal stakes in the market. Balance skepticism and enthusiasm, seek diverse viewpoints, and perform due diligence when it’s needed.

Information is the most precious thing. If you know something others don't, you can easily outperform the market.

Blockchain explorers

Have you ever wanted to check your crypto transaction? That’s precisely the purpose blockchain explorers serve. Obviously, it’s much more than just that.

Do you want to check your Bitcoin transaction? Head over to Mempool and enter your transaction ID. Then you should see all the information.

Or maybe you have the desire to check your Ethereum address? Go to Etherscan, paste your address, and hit enter.

On-chain research

At the later stage of your journey, looking for crypto research websites is considered a good idea, which yields results in the not-so-distant future.

Nansen provides a way to track wallet connections, which may let you spot scams from far away or get an idea of which coins are in the accumulation phase.

The moment you click that green button, a decision is made. What effect would the data you could’ve seen have had? You never know—that’s why you should scan contracts to understand what rules are set for a certain token. Can you sell? Does the token have any taxes? Can the developer mint new coins? These are all important questions, which shouldn’t be left unanswered. Dexscreener may help you with this.

Don't let FOMO control you - before putting any money in a token, answer these questions.

Tax and compliance

Once you’ve realized some profits or exchanged one coin for another, depending on the jurisdiction you reside in, you are required to pay tax. Adhering to deadlines is critical if you wish not to incur any penalties.

The most widely tax tool is Koinly—it supports multiple cryptocurrencies, and transactions can be added manually or automatically, allowing for a certain level of freedom and flexibility.

TokenTax is also a solid alternative to Koinly. Their features mostly overlap, but TokenTax also offers access to tax professionals for more complex situations.

Security

Best security practices include bookmarking trusted websites to avoid fake crypto apps. Using 2FA prevents unauthorized access, and utilizing available VPNs in public helps protect your details and further secure your accounts. Remember also that under no circumstances should you share your private keys with anyone!

Keep an eye on your crypto accounts and transactions for any suspicious activity. Another thing is keeping your software up-to-date to patch potential bugs and minimize exploits.

Thinking ahead

The right tools will empower you to make smarter decisions. On the other hand, lack of information will slow you down and lead to regretful decisions. 

If you’re ready to level up your crypto skills, explore these tools and take advantage of all the resources available. The choice is yours, and remember—never stop learning and strive for more!