Cryptocurrency trading is impossible without the appropriate software. To some extent, all crypto exchanges provide it. Everywhere you can, for example, conclude deals; most resources have simple graphics. But for full-fledged trading, this is usually not enough. The way out is special platforms - trading terminals for trading cryptocurrency. What are they and what is their specialty? Let's find out in this article! What are cryptocurrency trading terminals and how do they work? A trading terminal for crypto trading is any program or set of scripts that displays data about the crypto market and allows you to make deals on it. Any exchange is equipped with such scripts, and we can say that any exchange has its own mini-terminal.
But in practice, a trading terminal is called: An online platform that is not an exchange, but provides a wide range of trading functionality and the ability to connect to exchanges. Offline application with the same features. However, there is no clear boundary between the concepts of "trading web interface of the exchange" and "trading terminal", so the designation "terminal" can sometimes be seen in relation to the exchange trading functionality. For trading on crypto exchanges through the terminal, it is necessary that it be “compatible” with the exchange. Supported terminals are usually listed on the exchange itself. For example, Poloniex once offered TerminalCoin, and BTC-E was one of the first exchanges to support MetaTrader 4, the most popular terminal in traditional markets. The exchange may offer an offline terminal for a computer, tablet or phone, or may provide links to recommended online terminals.
In the first case, the user just needs to download and install the program. In the second, register in the online terminal and connect the desired exchange to your account via the API. API stands for "Application Programming Interface" and is a set of software 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. In this case, the terminal gets access to the user's profile on the exchange and to the exchange's public data - a list of cryptocurrencies, their prices, and so on. The terminal works with this data - it makes charts, substitutes the necessary parameters into the indicators, and so on.
Despite the apparent complexity, connecting via the API is simple: you usually need to copy the API key from the exchange and paste it into the required field in the terminal. Technically, you can connect via the API not only the terminal recommended by the exchange, but any other terminal that supports such a connection. To do this, the API on the exchange must be open. They are open on many exchanges, but not on all, so you need to find out in advance if the exchange allows you to do this. Terminals for cryptocurrency trading: advantages First of all, the functionality of the terminals is used by traders who need to conduct a full-fledged technical analysis. Large terminals contain the maximum number of technical analysis tools. A trader can choose the tools he is used to and needs, configure them, disable unnecessary functions, use additional plugins, and more.
The terminal provides maximum opportunities for conducting a comprehensive technical analysis and allows you to customize the algorithm for its implementation in accordance with the needs of the trader. Terminals are also used to track the market situation. Through them, you can view data on all cryptocurrencies that are traded on an exchange or on several exchanges, set up data output for some of them, systematize 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 widespread due to their user convenience. For example, a trader may find the charts provided by the exchange uncomfortable. He selects a terminal that matches his idea of convenience and makes the same graphs more visual for himself.
The same goes for other instruments. In terminals, you can usually resize blocks, 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. The most important for a trader, therefore, are the following terminal features: The ability to use the maximum number of analysis tools, trading tools, and more. Ability to customize the maximum number of parameters. The ability to sort, organize data from an exchange or several exchanges. Ability to install on multiple devices.
Ability to change the interface. Guided by the presence of these parameters, you can choose the terminal that suits you. However, it is also worth paying attention ie on the speed of its work (how quickly data is exchanged between it and the exchange) and security. What is the difference between exchange and independent terminals for cryptocurrency trading? Despite the foregoing, many traders make do with exchange functionality. It is enough for a superficial assessment of the market, for a minimum technical analysis of the asset and for the trading itself. It usually includes: Standard timeframes are linear or Japanese candlesticks. The minimum stock order book is limited to a few lines.
But an extended list of prices is usually available on a separate page. Graphs of trading volume and other market indicators. The simplest technical indicators are, for example, based on moving averages. They are not found everywhere, and usually there are up to five indicators on one exchange. Exchanges also 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 - convert 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 features of the exchange mini-terminal are united by one thing - simplicity. Exchanges do not embed tools that consume a lot of memory or take a long time to load, otherwise they will unduly slow down the resource and make it inconvenient and unsuitable for traders. Moreover, even the simplest instruments are placed only on exchanges, which are initially provided with high server power. Small crypto-exchanges located on weak servers cannot work quickly even with the listed minimum, so they usually have only a couple of standard charts - and no indicators. Another thing is the terminals. They are initially tailored for significant loads, so they either operate on the basis of equipment appropriate for the loads (if we are talking about online terminals), or use the power of a user computer (offline terminals). From here - a lot of additional functions, for example: Automation of actions up to creating templates of trading strategies (the latter can be done by MetaTrader 4, automation of certain actions is available in most terminals).
Creation by the user of his own scripts that can, say, display certain data on an asset, and so on. Functionality for parallel trading on different exchanges or arbitrage. Several exchanges are connected to the terminal (leonArdo, for example). A trader can trade from one program independently on each of the connected exchanges, or maybe between them. You can set up template notifications from one exchange when a trader is on another, and so on. Simultaneous output of a huge amount of data, simultaneous operation of several relatively complex and "heavy" indicators, output of an extended version of the tools, and so on. (Basically, Coinigy, Tradingview, MetaTrader can boast of this.
) Multilingual (Tradingview), which allows you to receive data from any exchanges in your language. This is not a complete list; in fact, trading terminals provide a lot of opportunities from creating your own asset bases to participating in referral programs (Coinigy, for example, has one). The difference between a trading terminal and exchange functionality is about the same as between professional graphics editing software and a simple graphics editor built into sites that are far from graphics. Is it worth using trading terminals for cryptocurrency trading? But terminals also have their drawbacks compared to exchanges: Work speed. Developers are striving to reduce the time gap between the actual appearance of data on an asset and the display of this data in the terminal. But the gap in seconds still exists, and in little-known terminals it can reach up to a couple of minutes. For high-frequency trading, such intervals are catastrophic, and any trader can lead to serious losses.
Most fast terminals with good performance and a convenient set of functions are paid. For example, for Coinigy, which has gained popularity in the cryptosphere, you will have to pay $18.66 per month. The license for other terminals is for life, but it costs at least $80, it goes up to $300 and more. Of course, craftsmen bypass this shortcoming. But using a hacked program that has access to a money account is at least unreasonable. Insecurity.
This lack of terminals is relevant not only for hacked, but for any trading platforms. Terminals that have proven themselves in traditional markets do not always work with crypto exchanges. Cryptocurrencies that work with most exchanges are new and do not inspire confidence. Especially the free ones. If it makes no sense for the creators of the same Coinigy to steal money from users and damage their reputation, since they already have sufficient income, then the creators of free terminals do not receive anything, and it is easy to assume that the program may not have been created out of good intentions. Same cus There are also relatively cheap terminals. Terminals have a vulnerability compared to exchanges - their communication channel with exchanges.
If it is not secure enough, an attacker can get the data at the time of its transfer between the terminal and the exchange. Whether it is secure enough is a question that only a specialist can answer if there is an open source terminal code, and its developers rarely provide it. Of course, both free, and cheap, and expensive terminals can be reliable, but this is only verified by experience and time - at the risk of traders' funds. Therefore, some traders prefer to limit themselves to the minimum functionality of crypto exchanges. It's free, it's as secure as the exchange is, and often faster. Major exchanges regularly update their technical base and seek to expand and / or speed up their built-in mini-terminals. Looking at how traditional exchanges have evolved and observing trends in technology, it can be assumed that for the foreseeable future, crypto exchanges will have fast terminals with a relatively wide range of functions.
Of course, trading on the stock exchange is less convenient than in the terminal, and experienced traders usually prefer terminals. But 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 switch to the terminal when the need for it becomes obvious and the income allows you to buy a license to use a reliable platform. .