Cryptocurrency trading terminal – working principle, advantages and disadvantages

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What is a terminal for cryptocurrency trading

In essence, cryptocurrencies are similar at the same time to a means of calculation and stocks, so they can be called an asset difficult to analyze. A professional cryptocurrency trader needs a lot of tools to assess the situation on the market. To one degree or another, all trading floors provide them, but this is not enough to fully assess the situation. In this case, special trading terminals designed specifically for integrated market monitoring will come to the rescue.

The cryptocurrency market is quite new and rapidly developing. Now there are more than 1000 cryptocurrencies with a combined capitalization of hundreds of billions of dollars. With so many assets, professional cryptocurrency trading is impossible without quality tools for market analysis. Today, traders trading in the cryptocurrency market face several main difficulties:

  • Lack of professional tools to track the market;
  • Lack of access to the bases of trading strategies;
  • Technical problems with displaying the exchange interface on different devices;
  • Lack of full access to trade statistics.

The terminal for cryptocurrency trading allows you to solve most of the problems and provide traders with a comprehensive professional tool for transactions with the maximum benefit. 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 conclude quick transactions.

A trading terminal is a special platform, program or script that displays information on the state of the market. Using the terminal, traders can track a chart of changes in value, view trading volumes and track a glass of open orders. The information obtained allows us to predict the further movement of value and conclude transactions that are advantageous to ourselves.

Terminals are exchange, online and offline.

On cryptocurrency exchanges, a set of scripts performs the functions of a trading terminal with the help of which the latest information on transactions, charts and trading volumes are displayed to users. Based on the data received, traders can foresee a further movement in the value of assets. Such terminals are most often referred to as the web-based trading interface of the exchange, and the concept of the trading terminal often means separate specially developed platforms, but there is no clear distinction between these concepts.

Trading terminals operating outside the exchanges usually have more advanced functionality. They are special services, plugins or applications that integrates data from many trading platforms and display their values ​​in their interface. With their help, a trader can trade on one or several exchanges at once, including making arbitrage transactions. It should be noted that for trading on exchanges through third-party terminals, they must be compatible with exchanges.

The principle of the trading terminal

Trading terminals allow for a comprehensive technical analysis of the cryptocurrency market. They have collected many tools for successful trading. Users can independently choose the tools they need and configure them, which allows you to create an individual market tracking algorithm 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 conducting quick trading operations.

By the principle of operation, they are not much different from the tools of cryptocurrency exchanges, but they have more advanced functionality. In particular, in addition to the usual schedules, the terminal provides the following features:

  • The use of all tools for market monitoring within one platform;
  • The ability to customize the user interface for many parameters;
  • You can configure informational notifications according to individual templates, which will notify the trader about changes important to him;
  • Systematization of data from several exchanges simultaneously;
  • Customization of tools to individual requirements;
  • Synchronization with multiple devices.

Advanced trading terminals, in addition to the basic tools, can be equipped with many additional functions that are not available on exchanges:

  • Automated template trading;
  • Create your own scripts;
  • Parallel trading on several exchanges simultaneously;
  • Multilingualism, allowing you to receive data from foreign exchanges in a convenient format.

Exchange and independent terminals

The vast majority of traders use exclusively exchange terminal tools to track the market. They are available to everyone on a free basis and usually include several basic tools:

  • Standard line charts or candlestick charts;
  • Stock exchange glass;
  • Trading volume;
  • Simple technical indicators.

This functionality is quite enough to conduct an initial analysis of the market, but not enough to make a comprehensive analysis. The limitation of exchange instruments is due to the need for high-power servers. Moreover, even in order to give traders a minimal set of tools, the exchange must have large server capacities, while small crypto exchanges are often limited by a basic set of tools, the speed of which is not maintained at a high level.

The difference in the functionality of the exchange and third-party terminal can be compared with the difference between a simple graphical editor and a professional Photoshop.

Trading terminals, originally developed and tailored specifically for market monitoring, have more advanced functionality compared to exchange ones and provide complex information based on data received from many sources. Their servers are designed for high-quality performance of their functions and does not cause difficulties for users.

Developers seek to minimize the time period required to update information. For high-quality trading, the gap between the actual change in the market situation and its display in should occur almost instantly, but since the terminals work with several trading platforms at once, the gap in the most unsuccessful terminal options can reach several minutes.

Unlike standard exchange terminals, third-party services are less accessible. High-quality and fast-working tools are usually provided on a paid basis, while anyone can use the exchange tools.

Trading through the exchange is less convenient than through the terminal, but the communication channels for concluding a transaction are a security vulnerability. Therefore, the choice of a payment terminal must be approached with responsibility.

Browser and mobile terminals

Third-party trading terminals can be divided into browser and mobile applications. Browser versions provide all the necessary tools 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 the glass of exchange for the selected cryptocurrency pair. They make it easy to track data from exchanges through any device.

An example of a browser trading terminal is the WebTrade service, which cooperates with such large cryptocurrency exchanges as Kraken, Poloniex, EXMO.

Applications 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 anywhere in the world.

Advantages and disadvantages of working with the terminal

Benefits:

  • Professional market tracking tools;
  • Allow you to receive information from several exchanges at once;
  • Support the completion of transactions with synchronized work with exchanges;
  • Allow you to customize the graph display interface in accordance with the desire of the user;
  • Have high-quality display on different devices;
  • Advanced terminals support automated trading by trading strategies.

Disadvantages:

  • Communication channels for transactions are not sufficiently protected;
  • Professional terminals are provided for a fee;
  • For poor-quality services, the gap between the actual change in the market and its display on the charts can reach several minutes.

Conclusions

Cryptocurrency trading terminals are professional tools for monitoring market conditions. Mini-trading terminals are available on every cryptocurrency exchange, but standard exchange tools 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 at once on several trading floors and provide information on all cryptocurrencies on the market. Despite all the advantages, third-party programs have great security vulnerabilities, so you need to be fully responsible for choosing them.

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