Cryptocurrencies are an emerging asset class with $1.2 trillion in market value and this figure looks to increase in the future because of heavy retail and institutional interest in the market. The interest in crypto has been fueled by an increasing distrust in fiat currencies and the incredible growth that the asset class has generated over the years.
As more investors flock to the space and invest in the widening pool of cryptocurrencies, it may be difficult to keep an eye out on all your investments. Several factors make it difficult for investors to track their crypto investment such as the volatility of the crypto markets and the use of multiple exchanges or crypto wallets.
Nevertheless, it is still possible to track and manage your crypto investments using a few tips and tricks of the trade to make the most out of the ecosystem.
Reasons to Track Crypto Investments
There are several reasons to track your cryptocurrency investments across several platforms and they include;
1. To Check Trading Strategy
Having several cryptocurrency holdings across several exchanges and wallets makes it difficult to know whether a trader is making profits or not. First of all, the assets are spread out, and opening multiple platforms to check prices is almost an impossible task because of rapidly changing prices.
The use of a proper cryptocurrency tracking system would help investors have an overview of real-time prices, making it easy for users to easily ascertain if they are making gains or losses and adjust their trading strategy to that effect.
2. Tax Purposes
With regulations around cryptocurrencies becoming stricter, investors across several jurisdictions are required to file taxes on their crypto holdings. The use of proper crypto trackers would make calculating taxes a seamless process for investors.
3. Monitoring Assets Not Listed On An Exchange
Some cryptocurrencies may not have been listed on an exchange and investors might be keen on tracking the performance of the asset. There are several reasons for tracking the performance of an unlisted cryptocurrency asset including plans to add it to a portfolio upon listing. A crypto portfolio tracker makes it possible to track rare cryptocurrencies that have not yet been listed on popular exchanges.
Tips To Track And Manage Crypto Portfolio
1. Making A Personalized Watchlist
The best cryptocurrency portfolio trackers allow users to customize their watchlists. This is one of the oldest tricks in the book because it allows investors to focus only on the cryptocurrencies that they are interested in. Although the investors do not own the assets yet, they can gauge the performance to tell if it is worthy of forming part of their portfolio.
Amid all the noise, investors can create a portfolio of all their cryptocurrency holdings across all platforms. Users should take advantage of the immense customization features of the crypto portfolio tracker to narrow the assets they are interested in for increased focus.
2. Use Price Alerts
Trading cryptocurrencies revolves around asset prices and keeping close tabs on fluctuating prices would send your trading to the next level. Tracking portfolios have a little-known feature that allows users to set crypto price alerts on cryptocurrencies of their choice.
The tracking platform sends the price alerts automatically to the devices of the user. Investors can choose whether they want to receive price alerts as notifications on their applications or they will want to receive alerts through emails.
Traders can send automatic price alerts at either support or resistance levels or even long-term price projections. While it may be easy for investors to forget their prices, portfolio trackers do a great job at helping traders keep an eye on prices.
3. Keep An Eye On The Fundamentals
Most cryptocurrency traders solely rely on technical analysis to make investment decisions. However, fundamentals are an important part of trading and the prices of assets can swing wildly from big announcements and other breaking news.
In order to properly manage your crypto investment, users must pay attention to the fundamentals by following the social media handles of interesting projects and checking cryptocurrency news publications regularly.
If this seems like a hassle, leading crypto portfolio trackers aggregate the latest and trending news stories for users to stay informed. Oftentimes, there is the option for investors to sort through news based on the coins instead of wading through hundreds of headlines. This is a sure-fire way to get ahead on cryptocurrency trading and investments.
4. Diversify Your Portfolio
Diversifying your cryptocurrency portfolio is one of the important tips for crypto traders to know. Putting all your eggs in one basket might be fatal if the price of that particular asset tanks.
Traders can diversify based on the market capitalization of assets with a healthy mix of coins in the top 10 largest cryptocurrencies and other coins with smaller market caps. Investors can make the most of their investments by purchasing cryptocurrencies with different use cases like Bitcoin which is a store of value, stablecoins, and Ethereum for its expansive smart contract functionality.
Managing crypto investments is often seen as rocket science to the uninformed but with the right tips and tricks of the trade, users can deftly navigate through the space. The use of a crypto portfolio tracker makes the entire process seamless with the ability for traders to be able to track their holdings in one intuitive dashboard.
Crypto tracking portfolios come loaded with a ton of features like profit calculator, aggregated news, price alerts, and others to help traders manage their investments. Get an edge in the game and try your hands at CoinStats, one of the leading crypto portfolio trackers with over 1.5 million users, 400 supported exchanges, and over 5,000 cryptocurrencies being tracked.