Investing in anything means having the right tools in place before wading into the markets. When it comes to digital assets, having the proper tools for crypto investing is absolutely essential. Modern investing is entirely digital, and success is often predicated upon having the right digital infrastructure at your disposal. What’s more, cryptocurrencies are entirely digital assets, so analogue trading and investing isn’t even an option.

Getting safely and responsibly into the cryptocurrency markets requires not just a significant amount of self-education and understanding, but some technology in place before you can begin successful buying, selling, storing and analyzing your assets. Below are 5 tools to have in place before investing in crypto.

A Compound Interest Calculator

There are different compound interest calculators available for different coins. They help you arrive at how much interest you can expect to receive over a specific period of time, how compound interest adds to your savings, how to arrive at the compound interest amount for a particular cryptocurrency, and your total profit (interest plus capital appreciation) over time.

Many sites that specialize in crypto news and investing have compound interest calculators available for download or that are already part of the site. It is a good idea to have one of these bookmarked and easily accessible before you start trading.

A Trading Terminal

Most serious investors seeking short-term crypto gains use a trading terminal. These terminals connect to major exchanges to execute trades. They are similar to those used by traders at big investment banks and financial institutions. The terminals provide up-to-the-minute information on prices and market movements.

Experienced traders often use more than one terminal. They may have a dedicated desktop screen for each terminal. This setup helps maximize trading efficiency and save time. Many all-in-one crypto platforms offer trading terminals as part of their package. These platforms often include bot portfolio allocators and investor tools.

A VPN

There have been some unfortunate crypto hacking stories and massive thefts that have occurred over the last couple of years which, for good reason, have put investors on edge. Among the essential tools for crypto investing is strong security, as crypto is not insured like other assets held at a bank or other financial institution would be, so if you lose everything, it’s gone for good.

Most exchanges use HTTPS end-to-end encryption, which makes it hard for hackers to intercept your data, but a good VPN is added protection that many investors and traders insist on. There are both free and paid VPNs that help hide your data from cybercriminals.

A Portfolio Manager/Tracker

Portfolio managers are important because they let you track which coins you have invested on which exchanges. Without a portfolio manager, it is more difficult to make important portfolio allocation decisions.

There are some ok free portfolio managers available, but the best ones are usually a paid service. The bottom line, however, is that whether you are holding crypto long-term or are trying to take advantage of short-term price swings, a portfolio tracker is a must-have.

A Crypto-News Aggregator

Markets can change quickly and unpredictably. Crypto markets move even faster. Trading fiat currencies is already a volatile business. Trading cryptocurrencies is even more unpredictable. They are not institutionally-backed and are often influenced by speculation and rumors.

To stay up to date with coins and exchanges, you need a centralized source of information.

A crypto news aggregator collects daily, weekly, and even hourly updates. It includes news, social media buzz, and expert commentary in one place. Sites like Coinsutra, Newsbtc, and Bitcoinist are popular examples. These are checked daily—sometimes obsessively—by crypto investors and traders.

Conclusion

Cryptocurrencies are either terrible investments or a once-in-a-lifetime opportunity to take part in a genuine monetary system revolution, depending on who you ask. Regardless of what kind of investor you’re talking to, however, anyone who makes a living or even just plays around in the market (with cryptocurrency or otherwise) will insist that you have the necessary investing infrastructure and processes in place before using real currency, fiat or crypto.