If you are in the cryptocurrency market, whether as a trader or an investor, you know that building your digital assets is the most important thing you can ever do. You need the right tools that help you achieve that, such as a cryptocurrency portfolio tracker that helps you monitor your crypto performance and trading. A cryptocurrency portfolio comprises all the digital assets you hold, trade-in, invest in, and your selected trading platforms. In simple words, it is like a basket of all the cryptocurrencies that you own.
If you are a digital currency investor, it is absolutely a good idea to use a cryptocurrency portfolio tracker to monitor your performance. Lets us look at the various reasons why you need a cryptocurrency portfolio tracker.
Track your crypto holdings and performance
Many cryptocurrency traders always aim for one thing; growing their portfolio by increasing the value of their investments. To establish a portfolio, you must consider the following things as a crypto investor or trader; your time horizon, trading style, risk tolerance, and asset allocation. Note that your cryptocurrency portfolio can never be the same as another trader’s portfolio. Your choice of digital assets may depend on several things, such as the technology running the token, the team behind its development, among other factors. Even an element such as your tolerance for crypto price volatility affects the way you build your portfolio.
With that in mind, you need a crypto portfolio tracker to effectively track your cryptocurrency holdings and monitor your trades’ performance. It would be best to have the most feature-rich crypto tracker software or tool to manage your portfolio. Cryptocurrency prices are always changing in the highly volatile market so, manually updating your portfolio with the real-time value of the digital assets you hold can be challenging.
You can also fail to track your current crypto holdings without a proper portfolio tracker if you are a frequent trader and use crypto trading bots. The crypto trading technology is continually evolving, with changes always coming to the market. Every crypto portfolio tracker or software tries to solve the traders’ problems by introducing various features and updates.
Uses of a crypto portfolio tracker
- A cryptocurrency portfolio tracker enables you to successfully monitor your crypto investments and tradings via a single up, which means more convenience.
- It enables you to monitor your asset allocation and trade orders.
- It helps you compare coin performance.
- It gives you real-time updates on crypto value movements and balances.
Types of cryptocurrency portfolio tracker
Different types of crypto portfolio trackers are available in the market, some of which are automatic and others manual. Most of them are in the form of apps that you can easily download on your phone. Some more advanced trackers require you to pay a small fee for their advanced metrics, such as pie charts and graphs. Some will even execute tax calculations for you.
You can either choose an automatic or manual app, although an automatic app saves you time and offers you convenience. Apps that automatically give you alerts help you to see changes as soon as they occur and act upon them.
The final words
If you are a trader and is involved in the risky game to invest in many cryptocurrencies, a portfolio tracker app is necessary to monitor your performance.