- A crypto portfolio contains different investment assets that an investor owns at a given moment.
- A crypto portfolio tracking software helps in managing the crypto portfolio.
The cryptocurrency industry is continuing to thrive more and more. A trader must ideally diversify his/her investment by putting their money in different crypto coins. A versatile cryptocurrency portfolio is recommended to reduce the risks associated with crypto trading. Crypto portfolio tracking is a vital part of one’s trading journey that can be made more efficient with the help of crypto portfolio tracking software.
Let us start with the basics.
What is a crypto portfolio?
The purpose of a cryptocurrency portfolio is to help people manage to have a bird’s eye on all their holdings of online currency investments so that they can have better insights and eventually trade better. The portfolio can be hosted on crypto management software, where a trader or investor can track the performance of the coins with certain analytical tools.
With a portfolio, one can keep an eye on the inventory to limit the risks and take advantage of the profitable investments more effectively. While people may use an excel sheet to keep track of their investments, to do that process without a hassle and much effort, you will need a crypto tracking app.
Tracking your crypto portfolio is an essential part of your crypto trading journey where the best crypto portfolio tracking app can get the most out of your trading profitability. When you are managing more than three crypto coins, a tracker can cut the hassle by supervising the investments.
What is a crypto tracking app?
An app for tracking your crypto portfolio can make you aware of the constant market changes, help you understand the value of your crypto holdings, and make your portfolio more diversified.
With crypto tracking apps, one can efficiently manage your portfolio without the hassle of having information on all trades from different exchanges in one place. People can, in turn, manage the crypto assets in one place and see the profits and losses from the investments you have made. Most apps also come with the feature of setting up important notifications and following the market prices in real-time.
Why do you need a crypto portfolio tracker?
The number of cryptocurrencies is growing each day, and similar to fiat currencies, the values of these currencies are changing as well. This becomes even more intensified by the fact that the crypto market is active 24/7. In such a scenario, the importance of employing a crypto tracker can never be overstated.
Here are the most common reasons for using a tracker for one’s crypto portfolio:
Stay alert to the market changes
Because cryptocurrency is volatile due to drastic swings, investors can often find different opportunities. However, without grasping the true capability of your buying power, it might get difficult in this fast-paced, volatile market. Portfolio tracking software offers an accurate view of investments in a much faster way.
Grasp the value of the crypto holdings
Since the crypto market is active 24/7, tracking multiple coins through several crypto exchanges can be challenging. Tracking apps can be useful in such cases where you can easily get the whole picture of the value of the different holdings at a glance.
Keep a diversified portfolio
Since the crypto market is highly volatile by nature, having a well-diversified portfolio will not only help in reducing the risks but also generate higher returns. Using a competent portfolio tracker empowers you to diversify your portfolio without losing track of your crypto coins.
Now that we have discussed what crypto portfolio tracking is and what tools we need to track them, it is now time to explore how we can track crypto portfolios with tracking apps.
How to track a crypto portfolio with a tracking app?
As almost all the apps are similar when it comes to the operations in portfolio tracking, here is an average how-to guide on tackling your portfolio through a tracking app.
Simply sign up for a crypto tracking app using basic information such as an email address. After signing up, the app will display the portfolio home screen, where funds can be added to the portfolio.
A tracker app gives people the option to choose the data they are willing to view. For example, one can easily glance at the total balance, 24-hour portfolio change, total profit/loss, 24-hour volume, and many more that will help them get a better understanding. Apart from tracking your portfolio, Binocs also helps with calculating taxes on all the trades.
Binocs is a platform that helps with the taxation process that follows after trading with cryptocurrencies in India. Calculate your taxes with Binocs now.
Frequently Asked Questions
What are the common features to look for in a crypto tracking app?
Ease of use, if it supports crypto wallets, exchanges, and currencies, access to analytics, accessibility across devices, security, flexibility, and customer support are the most basic features a tracker app should have. Binocs is a software that provides all of the features mentioned above, which are necessary for a crypto tracking app to provide.
What are the common tips for managing your crypto portfolio?
Analyze the currency, diversify the investments, and plan your risk management thoroughly.