How to Track Your Crypto Portfolio
Keeping track of your digital assets and investments is crucial when it comes to measuring your success as a cryptocurrency investor. As the crypto market grows, the number of exchanges available offers fantastic investment opportunities but can make keeping track of your portfolio difficult.
In recent years, many portfolio tracking systems have hit the market with tools and abilities to help every investor – from beginners to even the most experienced – manage their cryptocurrency.
Why Use a Cryptocurrency Portfolio Tracker?
There are several reasons why active investors should use a portfolio tracker, but we’re going to focus on how they can help you to set and meet goals, understand the value of your holdings, stay ahead of market changes, and keep your portfolio diversified.
Set and Meet Goals
One of the most important features of a portfolio tracker is its ability to organize your financial information into a single account. This can make it easier to understand where your cryptocurrency holdings are and what they are being used for, which will allow you to set and follow through on your major financial goals.
Understand the Value of Your Holdings
Just like the stock market, the cryptocurrency market fluctuates daily. If you have invested in several different types of coins, monitoring the value of each and adding them together can be tricky since the value of each coin changes constantly. A portfolio tracker will display the value of all your different coins at once so that you always know how much your portfolio is worth at any given time.
Stay Ahead of Changes in the Market
The cryptocurrency market is still relatively new, with constant market developments offering new opportunities for investors. If you want to make a move fast, you need to have an accurate view of your buying power, which can be hard to achieve if your assets are spread across multiple platforms.
Keep Your Portfolio Diversified
The more diversified your portfolio, the greater protection you have from major losses when the market is down. Well-diversified portfolios tend to generate higher returns than poorly diversified ones, so it’s no wonder why investors stress the importance of diversification. Cryptocurrency portfolio trackers allow investors to pursue diversification without losing track of coins across various platforms.
What to Look for in a Cryptocurrency Portfolio Tracker?
With so many crypto portfolio trackers available today, how do you know which one is the best for you? Most portfolio trackers offer different features and incentives to their users, but there are certain functionalities that should be present no matter what. In this section, we’ll talk about the criteria you should look for when comparing different portfolio trackers to empower you to make the best choice for your needs.
A high level of security is a must since portfolio trackers connect to its users’ cryptocurrency accounts. Without property security protocols in place, it’s possible for accounts to be hacked. Luckily, it’s typically easy to tell which portfolio trackers take security seriously. When choosing a tracker, take a look at their website to ensure that they use two-factor authentication and encrypt all of the data they manage.
Portfolio trackers allow you to track different kinds of coins – such as both BTC and ETH – at once. They do this by utilizing third-party aggregators to connect with different cryptocurrency data feeds. Unfortunately, many aggregators only work with certain cryptocurrency feeds, which means that not every portfolio tracker will work with every crypto exchange or wallet available.
Look for a portfolio tracker that integrates with and automatically syncs to as many cryptocurrency exchanges as possible. A portfolio tracker with great integration capabilities will allow you to stay as connected as you can, both to your own assets and to the market as a whole.
The point of a portfolio tracker is to create a single dashboard to monitor all of your investments. However, not every portfolio tracker is created equally, and some just don’t offer the same level of usability as others. Whichever portfolio tracker you choose should be easy to use, provide a clean interface, and automate tasks like re-updating your assets in real-time.
The purpose of cryptocurrency portfolio trackers is to make it easier to manage your digital assets but selecting the right one to meet your needs can be a challenge when there are so many to choose from. This guide should serve as a jumping-off point to help you choose the best portfolio tracker for you.
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