How to Track Your Cryptocurrency Portfolio
In the often chaotic world of cryptocurrency investing, it is not out of place for investors to hold several kinds of crypto assets. Casting a wide net has been recommended as an investment strategy under the tag of diversifying one’s holdings. While this increases your chances of returning a decent profit, it is fraught with the challenge of making operations incredibly complex.
Some cryptocurrencies might only be available on lesser-known decentralized exchanges, forcing investors to skirt through multiple platforms to keep track of their holdings. Despite the hassles, there are some ingenious ways for investors to keep an eye on their cryptocurrency portfolios across different exchanges.
There is the option of a crypto portfolio tracker which has simplified the process with the push of a few buttons. This article will cover the reasons why cryptocurrency portfolio trackers should be part of your trading arsenal, the steps to track your holdings, and the pointers to bear in mind before choosing a cryptocurrency portfolio tracker.
What we are going to learn?
Why Should You Track Your Cryptocurrency Portfolio?
Tracking your cryptocurrency portfolio is important for several reasons. First of all, the volatile nature of cryptocurrencies means prices are always changing by the minute. With assets scattered across different platforms, keeping pace with the price swings would be a handful.
Furthermore, a bird’s eye view of holdings will allow individuals to quickly assess whether or not they are making a profit or a loss across the board. Keeping proper tabs on portfolios is often instrumental in deciding if a particular crypto trading strategy works or not.
Tracking assets also has the benefit of preventing investors from being taken off-guard by sudden, sharp price movement. For those with a preference for diversification, a process for tracking asset prices plays an instrumental role in the success of this strategy as they split their holdings between lower risk and higher risk investments.
Using a Crypto Portfolio Tracker
One of the easiest ways for individuals to keep tabs on their assets is through the use of a crypto portfolio tracker. A crypto portfolio tracker is a digital platform in the form of a mobile application or website that allows users to track the price changes of assets seamlessly. The process is usually automatic and seamless with a few of the assets allowing users to integrate directly with multiple agencies.
The general rule of thumb is that investors should use a crypto portfolio tracker if they use multiple exchanges or hold more than three kinds of crypto assets. Several crypto portfolio trackers are proliferating the space, giving curious investors a hard time in deciding the right one. Before choosing one from the lot, there are some factors to be considered.
Security of the platform
Security should be a priority for every crypto investor and the choice of a portfolio tracker should reflect this fact. The right tracker should use military-grade encryption to prevent bad actors from breaking into the system which could be fatal for investors. An ideal crypto portfolio tracker is one that has no contact with the details of customers, choosing a trusted aggregator service to handle the sensitive information.
Ease of use
The whole point of a crypto portfolio tracker is for its usability and a tracker that falls short of this feature should not be considered. At its core, the tracker should allow for an intuitive user interface showcasing all the holdings of the user from one singular dashboard.
To achieve this, the tracker should feature high-level automation to streamline processes and show important information at a glance.
With the basics covered, a proper portfolio tracker should feature other impressive perks to make usage of the platform an enjoyable experience. Features such as an automatic profit or loss calculator, 24/7 customer support, a wide range of supported assets and exchanges, a thriving online presence, and others.
One of such leading cryptocurrency portfolio trackers is CoinStats, a coin price tracker that meets the criteria stated above. CoinStats goes ahead to include features such as ease of integration, a crypto news aggregator, and military-grade encryption for an added layer of security.
CoinStats features over 400 popular cryptocurrency exchanges and has tracked and managed over 500 million transactions worth over $100 billion. Furthermore, there is the option for the platform’s 1.5 million users to earn up to 20% APY on the platform and extensive learning resources for individuals to learn the ropes quickly.
Tracking Assets Using Crypto Portfolio Tracker
Connecting your exchange to a crypto portfolio is often a simple, straightforward process. The process usually involves the use of application programming interfaces (APIs) that allows applications to gain access to data and interact with external components.
While it may sound technical, it’s as easy as ABC. The first step involves logging into your cryptocurrency exchange account and navigating to API management which can be found under your profile option. Users typically have the choice to label their API key with a name of their choice.
Selecting the “Create API” option will most likely trigger a two-factor authentication (2FA) on the account. After passing the verification process, the API code and secret key will be displayed with users advised to store their secret keys in a private place.
The next step in the process will involve going to the crypto portfolio manager, scrolling to your preferred cryptocurrency exchange, and pasting the API Key and API Secret.
Trading cryptocurrencies is exciting but the intense volatility faced by investors takes away the shine from investing. The wide berth of available crypto assets and the need to diversify the holdings compounds the problem.
A way out of the debacle for crypto enthusiasts is through the use of crypto portfolio trackers to keep pace with rapidly changing asset prices and see all their holdings from one platform. In choosing a portfolio manager, there are several factors to be considered such as security, ease of use, and the availability of other perks on the platform.