Cryptocurrency trading is not possible without the appropriate software. It is provided by all crypto stock exchanges to some extent. Everywhere you can, for example, enter into transactions of most resources that have the simplest graphs. However, for full trading, this is usually not enough. The output is a special platform – trading terminals for trading cryptocurrency. What are they and what are their features? We will describe in this article!
A trading terminal for crypto trading is any program or set of scripts that display data on the crypto market and allow you to enter into transactions on it. Any exchange is equipped with such scripts, and it can be said that there is a mini terminal on any exchange.
However, there is no clear boundary between the concepts of “exchange web trading interface” and “trading terminal”, therefore the designation “terminal” can sometimes be seen in relation to the exchange trading functionality.
For example, Poloniex at one time offered TerminalCoin, and BTC E was one of the first exchanges supporting MetaTrader 4 – the most popular terminal in traditional markets.
The exchange may offer an offline terminal for a computer, tablet or phone and may provide links to recommended online terminals. The user will simply need to download and install the program in the first case. Register in the online terminal and connect the necessary stock exchange to your account via API – in the second case.
The API stands for “application programming interface” and is a set of program elements of a specific resource — in this case, an exchange — that can be integrated into third-party applications.
As a result of integration, a third-party application gets the opportunity to work with the data of the connected resource. Not with everyone, of course. The terminal gets access to the user profile on the exchange in this case and to the publicly available data of the exchange – a list of cryptocurrencies, their value, and so on.
The terminal works with this data – it composes graphs, substitutes the necessary parameters in the indicators, and so on. Despite the seeming complexity, the connection through the API idle time usually requires copying the API key from the exchange and pasting it into the required field in the terminal.
Technically, you can connect via API not only a terminal recommended by the exchange, but any other terminal that supports such a connection. To do this, the API on the exchange is open. They are open on many exchanges, but not on all, so you need to find out in advance whether the exchange allows it.
Large terminals are collected the maximum number of technical analysis tools. A trader can choose his usual and necessary tools, customize them, can disable unnecessary functions, use additional plug-ins and more.
The terminal provides maximum opportunities for comprehensive technical analysis and allows you to customize the algorithm of its implementation in accordance with the needs of the trader.
Also, terminals are used to monitor the market situation. Through them, you can view data on all cryptocurrencies that are traded on the stock exchange or on several exchanges, customize the output of data on some of them, organize them, and so on.
There are also browser plug-ins or mobile applications that do not have all the functions of the terminal, but, say, notify the trader about certain events on the exchange.
Terminals are common due to their user convenience. For example, the trader may seem inconvenient graphics provided by the exchange. He selects the terminal, which corresponds to his ideas about convenience, and makes the same graphs more visual for himself.
The same is with other tools. You can usually resize blocks in terminals, move blocks, change colors and so on. Some terminals allow you to view a number of already downloaded data offline and provide other useful features.
Guided by the presence of these parameters, you can choose a suitable terminal for yourself. However, it is also worth paying attention to the speed of its work (how quickly data is exchanged between it and the exchange) and security.
Notwithstanding the foregoing, many traders cost the exchange functionality. It is enough for a superficial assessment of the market, for a minimal technical analysis of the asset and for the trade itself. It usually includes
Also, exchanges provide the ability to use standard trading tools such as stop loss and take profit. In some places you can adjust the graphs to a minimum – transfer the interval to non-interval and vice versa, change the color and so on. Occasionally there are other additional features – depending on the exchange.
All the possibilities of the mini exchange terminal are united by one thing – simplicity. Tools that consume a lot of memory or require a long load are not built into the exchanges, otherwise they will slow down the resource and make it inconvenient and unsuitable for traders.
Moreover, even the simplest tools are available only on exchanges that were originally provided with high server power. Small crypto exchange stocks located on weak servers can not work quickly even with the minimum listed, so they usually have only a couple of standard charts – and no indicators.
Another thing is the terminals. They are initially sharpened for significant loads, therefore, they either operate on the basis of equipment corresponding to the loads (if we are talking about online terminals), or use the power of a custom computer (offline terminals). From here – a set of additional functions, for example
This is not a complete list. In fact, trading terminals provide a lot of opportunities from building your own asset bases to participating in referral programs (Coinigy, for example, has one).
The difference between the trading terminal and the exchange functionality is about the same as between professional graphic editing software and a simple graphic editor embedded in sites far from graphics.
Of course, both free and cheap and expensive terminals can be reliable, but this is verified only by experience and time – with the risk for traders’ funds.
Therefore, some traders prefer to be limited to the minimum functionality of cryptobirth. It is free, it is as reliable as the exchange, and often faster.
Large exchanges regularly update the technical base and seek to expand and / or speed up their built-in mini terminals. Looking at how traditional exchanges evolved, and watching the trends in technical progress, it can be assumed that in the foreseeable future, crypto exchange stocks will have fast terminals with a relatively wide range of functions.
Of course, trading on the exchange is less convenient than in the terminal and experienced traders usually prefer terminals. However, beginners should think a few times before taking it.
In fact, beginners most often use in the terminals exactly the functionality that the exchange provides. Against this background, it seems appropriate to sacrifice the convenience of the interface and start trading on the stock exchange and go to the terminal when the need for it becomes obvious and the income will allow you to buy a license to use a reliable platform.