A cryptocurrency portfolio represents all your investments across different types of investment assets. If you own ten types of coins, then your cryptocurrency portfolio is said to have ten cryptocurrencies.
Every sane crypto trader or crypto investor, inexperienced or seasoned, desires to maintain an excellent cryptocurrency portfolio. The point of signing up on a cryptocurrency or exchange is to build a well-rounded and robust cryptocurrency portfolio.
While there is no set formula for success in the crypto-world, you, as a crypto trader, can certainly go about it smartly and make wise decisions that will ultimately benefit you.
Things to consider while building a Cryptocurrency Portfolio
The following describes the factors you ought to consider before you create your cryptocurrency portfolio.
As you build your cryptocurrency portfolio, it is critical to consider the essential elements of tokens and coins trading. This way, you are likely to know what to do when the market goes red, and movement is trending negatively.
The general idea is to buy when the market is down and sell when the market goes up significantly. Timing is all about knowing what to do in the face of volatile market prices, as opposed to predicting the market prices themselves.
Considering there are over 2,000 coins and tokens to choose from and the volatility of the crypto world, you ought to make sure you do your research while building your cryptocurrency portfolio.
Number of Cryptocurrencies
While it can be tempting to purchase multiple crypto coins, to avail the various benefits that come with them, succumbing to those temptations may prove to be detrimental to your efforts in building a stellar cryptocurrency portfolio.
A crypto investor’s risk tolerance is difficult to assess. Crypto investors often overestimate the amount of risk that they can handle. Learn from bitcoin online broker.
Also, the effectiveness of diversifying your cryptocurrency portfolio highly questionable, as you may just be adding trading fees to your portfolio.
Therefore, limiting the number of cryptocurrencies you invest in is the best way to go in this situation.
Familiarize yourself with the Basics
If you’re new to the crypto world, be sure to read and find out as much as you can on cryptocurrencies before you take the plunge and build a cryptocurrency portfolio.
Given the volatility and complexity of cryptocurrencies, making an uninformed decision will only do you a lot of harm.
Analyze the investment required
The importance of analyzing your investment cannot be emphasized. With all the information out there, it is easy to get confused about which cryptocurrency to go for. Looking up a variety of sources before you take the plunge is vital.
Cryptocurrency Portfolios worth looking into
Beginners and seasoned crypto traders need a portfolio tracker that is both accurate and prompt. Unfortunately, excel sheets may not do the trick. Having a sound portfolio management system is crucial for making prudent investment decisions.
That said, trying each available crypto software to find the one that works best may not be a feasible solution. Here are some cryptocurrency portfolio trackers that may be just right for you.
Blockfolio is a well-known portfolio tracker. It has millions of downloads under its belt. It boasts an intuitive design that allows the tracking of multiple portfolios.
Blockfolio is available for free. However, it does not have the exchange synchronization capability, which means all trades have to be added manually.
Blockfolio allows users to create an account if they wish to access advanced features like backup and sync between devices. It also lets you import your portfolios on the off-chance that your handheld device gets replaced or stolen.
CoinTracking is a cryptocurrency portfolio tracking app that offers a multitude of features. It is meant for serious cryptocurrency investors and full-time crypto traders who wish to avail something more than just a spreadsheet that displays their cryptocurrency portfolio. This app is available for both Android and iOS, but registration has to be completed on the CoinTracking website first.
It allows you to import all your trades from major exchanges by merely importing the .csv files with the trade details. It also allows the interaction with significant exchanges using API keys to import the latest portfolio and trading information.
Keep in mind that these features are available only for customers who are willing to pay them. The free version allows you to enter only up to 200 trades and does not let you import data from your Blockchain wallet.
Delta is known to be one of the most popular cryptocurrency portfolio tracking apps on the market.
It is primarily a mobile app that supports both Android and iOS. However, it also caters to desktop clients for Windows, Mac, and Linux.
Aside from its usual portfolio tracking features, it allows you to set up a watchlist to track coins that you wish to purchase. Delta comes in two versions – free and paid.
The paid version offers advanced portfolio analysis tools. The free plan allows you to connect with only two exchange accounts or wallets, but the Delta PRO version will enable you to connect with as many exchange accounts and crypto wallets as you wish to.
Staying true to its name, Gem is claimed by many to be the best cryptocurrency portfolio tracker there is. It is simple to use, and its aesthetics are a bonus.
Unlike other crypto trackers, Gem allows the exchange sync functionality. This means you do not need to enter trades anymore manually. Gem is entirely free, and has no hidden terms, conditions, or paid plans.
There you have it. These are a few stellar crypto portfolio trackers to simplify the process of maintaining your crypto portfolio.
Krishna Murthy is the senior publisher at Finance XOD. He is not only the senior publisher but also the owner of Tricky Finance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.