Cryptocurrency Trading Terminal: How it Works?
Cryptocurrencies are similar to both settlement and stocks, so they can be called a difficult asset to analyze. A professional cryptocurrency trader needs many tools to assess the market situation. To one degree or another, all trading platforms provide them, but this is not enough for a full assessment of the situation. In this case, special trading terminals, specially designed for comprehensive market monitoring, will come to the rescue.
What is a crypto trading terminal?
The cryptocurrency market is quite new and rapidly developing. Now there are more than 1000 cryptocurrencies, the total capitalization of which is hundreds of billions of dollars. With so many assets, professional cryptocurrency trading is impossible without quality market analysis tools.
Today, traders trading in the cryptocurrency market face several main difficulties:
- lack of professional tools to track the market;
- lack of access to databases of trading strategies;
- technical problems with displaying the exchange interface on different devices;
- lack of full access to trade statistics.
The terminal for trading cryptocurrency solves most of the problems and provides traders with a comprehensive professional tool for making transactions with maximum profit. Trading terminals have long been familiar to those who deal with the stock market, where they are a source of information about the state of the market, and also allow you to make quick deals.
A trading terminal is a special platform, program or script that displays information about the state of the market on the screen.
With the help of the terminal, traders can track the graph of price changes, view the trading volumes and track the glass of open orders. The information obtained allows you to predict further movement of value and conclude profitable deals for yourself.
Terminals can be exchange, online and offline.
On cryptocurrency exchanges, the functions of a trading terminal are performed by a set of scripts, with the help of which the latest information on transactions, charts and trading volumes is displayed for users. Based on the data received, traders can predict further movement of asset values. Such terminals are most often called the trading web interface of the exchange, and the concept of a trading terminal is often meant as separate specially developed platforms, but there is no clear distinction between these concepts.
Trading terminals that operate outside of exchanges usually have more advanced functionality. They are special services, plugins or applications that integrate data from many marketplaces and display their values in their interface.
How the trading terminal works?
Trading terminals allow you to conduct a comprehensive technical analysis of the cryptocurrency market. They contain many tools for successful trading. Users can independently choose the tools they need and customize them, which allows them to create an individual algorithm for tracking the market in accordance with the trader’s strategy.
They allow you to track data on all cryptocurrencies existing on the market, traded on various exchanges, and can be synchronized with one or more exchanges for quick trading operations.
By the principle of operation, they differ little from the tools of cryptocurrency exchanges, but they have more advanced functionality. In particular, in addition to the usual charts, the terminal provides the following features:
- use of all tools for monitoring the market within one platform;
- the ability to customize the user interface by many parameters;
- you can configure information notifications according to individual templates, which will notify the trader of important changes for him;
- systematization of data from several exchanges at the same time;
- customization of tools for individual requirements;
- synchronization with multiple devices.
In addition to basic tools, advanced trading terminals can be equipped with many additional functions that are not available on exchanges:
- automated trading by templates;
- creating your own scripts;
- parallel trading on several exchanges at the same time;
- multilingualism, which allows you to receive data from foreign exchanges in a convenient format.
Browser and mobile terminals
Trading terminals can be divided into browser and mobile app. Browser versions provide all the tools you need for trading in a browser window. All cryptocurrency exchanges are equipped with such web services. As a rule, their functions are to display the chart and order book for the selected cryptocurrency pair. They make it easy to track data from exchanges across any device.
Apps perform all the same functions, but in a mobile format, which provides users with additional convenience. With their help, you can monitor the state of the market and make transactions from any corner of the world.
Pros and cons of working with the terminal
- professional tools for tracking the market;
- allow you to receive information from several exchanges at once;
- support the execution of a transaction in synchronized work with exchanges;
- allow you to customize the graph display interface in accordance with the user’s desire;
- have a high-quality display on different devices;
- advanced terminals support automated trading based on trading strategies.
- communication channels for transactions are not sufficiently secure;
- professional terminals are provided on a paid basis;
- for low-quality services, the gap between the actual market change and its display on charts can reach several minutes.
Cryptocurrency trading terminals are professional tools for tracking market conditions. Mini-trading terminals are available on every cryptocurrency exchange, but standard exchange instruments do not give an idea of the complex state of the market, and in this case, third-party trading tools with advanced functionality and flexible settings come to the aid of traders. They make it easy to work and monitor the situation on several trading platforms at once and provide information about all cryptocurrencies on the market.