There is a shift in the way we see investment with the coming on board of digital currencies like Bitcoin, Ethereum, Litecoin, Ripple, and other cryptocurrencies.
Backed to blockchain, cryptocurrency has triggered a new wave of investment opportunities that are not only lucrative but also challenging to navigate.
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While you might want to explore this new wave of investment, it becomes very important in knowing how to effectively track your cryptocurrency investments. This will help you to manage risk and maximize returns.
A new entrant into the digital investing landscape should be aware that cryptocurrency investment is not just about buying and holding, it is a dynamic process that requires regular monitoring, being responsive to shifts in the market, and understanding market trends.
Not just that, crypto investors need proper tracking to help them stay on top of their game to enable them to make informed decisions based on the performance of their assets.
In this article, we will explore the importance of tracking your cryptocurrency investments, various tools to use to monitor your digital assets portfolios, and methods you can explore to assist you in your crypto investment journey.
If you are new or have little knowledge, this guide aims to provide valuable insights that will help you navigate the volatile crypto markets.
Understanding cryptocurrency investments
Cryptocurrency is a decentralized virtual currency that uses cryptography for security. It operates on blockchain technology, which is a distributed ledger enforced by a network of computers (nodes).
Almost everyone who is yet to get on board asks at a time, “Why are people getting interested in digital assets?”
After the Bitcoin boom, other cryptocurrencies like Ethereum (ETH), XRP, Solana (SOL), Dogecoin (DOGE) etc have gained significant attention due to their massive potential for returns.
For instance, when 1BTC was just $0.003 in 2009 when Bitcoin was basically nothing, a Norwegian Engineering student bought 5,000 Bitcoins for just $27.
In today’s market, one would need over $151million USD to buy, that’s how profitable investing in cryptocurrency could be.
However, it isn’t always rosy as it seems because of its volatility. For instance, Bitcoin went from $350 in November 2013 to $68,789, on November 10, 2021.
That sounds sweet, right? Yeah, it attracted thousands of investors, but the frenzy lasted for a few days. From $68,789 in Nov. 2021, Bitcoin crashed to $17,769 by June 18, 2022. That’s why it’s important to understand how cryptocurrency works before investing diving in.
Reasons to track your Investment in cryptocurrency
With the potential returns with considerable risk in cryptocurrency due to volatility, you need to monitor and track your investments.
For instance, let’s take the story of someone who bought BTC in November 2021 when the price was soaring, thinking it would only keep rising. However, in January 2022, Bitcoin’s value plummeted to $35K and crashed below $17K by November 28, 2022.
Anyone who invested within this period incurred a significant loss because they didn’t track the market or adjust their investment strategy.
1) Minimize losses:
Tracking your investment helps you to minimize losses in cryptocurrency. You must monitor your investments regularly, use the right tools, and take advice from investment advisors.
2) Price movement:
Unlike stock exchange or forex trading which observes public holidays, the cryptocurrency market is open 24 hours a day. This means that prices can fluctuate drastically within a day.
Therefore, keeping an eye on your investments allows you to understand the price movements and take calculated risks and decisions.
3) Risk management
Tracking cryptocurrency investments allows investors to track how their investment is performing in relative to the market.
For instance, if a particular coin isn’t doing well, you can consider selling it to prevent further losses. Tracking helps you effectively manage and minimize your investment risks.
4) Helps identify opportunities:
You can only spot new investment opportunities when you regularly track them. for instance, some investors were able to observe Dogecoin was gaining traction simply because they were tracking the crypto market and trends. A tweet from Tesla founder Elon Musk could cause a spike in the value of DOGE.
For instance, DOGE witnessed a sudden 22% spike in value in May 2021, when Musk tweeted that he was working with Dogecoin developers to improve efficiency. You can seize opportunities early by staying updated, potentially increasing return.
5) Preparing for tax obligations
In some jurisdictions, gains from crypto are taxable. As such, tracking your cryptocurrency investments can help you to accurately calculate your tax obligations on crypto profits and avoid potential legal implications.
Different methods to track crypto investments
There are several methods available out there to track your investment in Bitcoin or altcoins. These include:
- Manual tracking
- Crypto exchanges
- Dedicated apps and websites
- Portfolio management tools
Manual tracking:
This method may be tedious, but it can put you on top of your game.
How does this work? Using spreadsheets, this method gives you full control over how you want to view your data. If you have a large crypto portfolio, it may be time-consuming.
Crypto exchanges:
Some cryptocurrency exchanges through their built-in features show you how much of each Crypto you own, its value, and its performance over time.
The limitation of this method is that it isn’t suitable for someone who has investments on multiple exchanges.
Portfolio management tools:
Using tracking tools such as Altpocket, CoinTracking, and CoinTracker offer more sophisticated options to manage and monitor your portfolio across different exchanges.
It provides detailed performance reports, and could even help with tax reporting.
Dedicated webs and apps
There are websites and applications that are designed to help you track Crypto investments real. They help you track changes in price and market value, news, and trends I’m cryptocurrency market.
Some of them include coinmarketcap and crypto Pro. They simplify tracking across multiple devices.
Best tools to track your cryptocurrency investments
There are more than 20 crypto portfolio trackers, but here is a list of top 10 apps you can use to manage and track your crypto assets portfolio:
1) CoinTracking:
CoinTracking portfolio management tool supports more than 24,000 coins. It has a free and premium plan. If you are just starting out and need a free crypto portfolio tracker, this tool lets you import CSV file of up to 5MB and gives you access to track 200 transactions.
You can upgrade to the premium plan if you are satisfied with the free plan to enjoy more than two portfolio backups. CoinTracking’s app is available on iOS and Android and it is available worldwide.
2) Delta App:
Delta mobile app allows you to track not just your crypto portfolio, but also traditional investments in one place. It supports over 7,000 cryptocurrencies and allows you to sync your portfolio across multiple devices.
Launched in 2017, Delta app attracted thousands of users around the world within its first year of its entry into the market.
With the free version of Delta App, you can sync up to two different devices, link two wallet connections, and link two exchange connections.
3) CoinmarketCap App:
CoinmarketCap portfolio tracker is one of the best in the market, but the recent update shows that the app can only track for 90 days. With more than 5 million downloads, the app has the largest convergence of digital assets. It is a great tool for staying updated with market trends and discovering new investment opportunities.
4) Altrady:
Available as a free and premium plan, Altrady crypto tracker supports more than 7,000 coins, partnering with exchanges such as Coinbase, Kraken, and Binance. However, the free plan last 14 days.
Altrady app constantly updates its charts, thereby making it easy for users to track the performance of crypto in the market and make decisions on when to dive in.
5) The Crypto App:
This digital asset management platform is available on iOS and Android and you can choose to trial with the free plan.
Apart from supporting over 6,000 coins, with the free plan of thecrypto app, you can get 100 real-time alerts and five wallet connections.
Not just, you will also have access to connect three crypto exchanges. The app’s widget allows users to track their portfolios without opening the app
6) Crypto Blockfolio:
Tracking investment in Bitcoin, XRP, EOS, Bitcoin, Ethereum, and hundreds of altcoins is made easy on Crypto Blockfolio. It with over 100,000 downloads on Google Playstore, Blockfolio allows you to track your cryptocurrency investment over time.
7) CoinStats:
This is the ultimate crypto portfolio tracker, including CeFi, and DeFi. It allows you to track your assets held on exchanges, wallets, and your NFT holdings.
CoinStats has more than 1 million downloads on Playstore alone. It also available on iOS. The free plan allows you to connect 10 crypto portfolios and the ability to track 1,000 transactions in a month.
The option to buy digital assets through third-party exchanges makes it all in one place app for a new entrant into the crypto investment terrain and even experienced investors.
8) CoinTracker:
This app has many features such as auto sync with unlimited exchanges and wallets, transactions history, and capital gains which can be downloaded as CVS etc, cointracker is one of the best crypto portfolio trackers out there. It supports over 2,500 coins.
9) CoinGecko:
If you want to track your cryptocurrency investments, it is imperative to stay on top of the news and trends in the crypto market. CoinGecko’s free crypto price tracker is great for you if you want to get real-time market data for Bitcoin, Dogecoin, ETH and over 10,000 other cryptocurrencies.
With CoinGecko App, you will be able to track NFT collection floor prices for Milady, Azuki, Bored Ape and other NFT collections.
It even gets interesting on the app when you build your own portfolio and track profits and losses real-time.
10) Cova:
Cova is all in one app to track crypto assets, ETFs, loans, stocks, real estate, and startup investments. It makes it easier to assign recipients to receive your wealth records in case of unexpected happens.
Strategies to track your Crypto assets portfolio
Now that you are familiar with the best tracking tools for your investment in digital assets, let’s take a quick look at the best strategies that can help you optimize the tracking process and minimize losses:
1) Understand market trends:
If you’ve been following crypto news, you realize that any digital asset Elon Musk tweets about, the asset enjoys a spike in price. It happened with Milady and Dogecoin when he tweeted about the two assets.
Crypto market price reacts to news and market sentiment. You have to keep an eye on the trends and follow crypto influencers to help you predict price movements.
2) Review investment strategy:
Trading requires regular review of strategies. You have to make adjustments to your portfolio. This could involve selling underperforming assets and investing in promising new ones.
3) Regular update of your portfolio:
If you are an active trader, regularly updating your portfolio is important to provide you with a real-time snapshot of your investments. This will enable you to make informed decisions.
4) Diversify your investments:
You’ve probably heard and read about the volatility of Bitcoin and other digital assets, how BTC crashed from nearly $70K to below $20K. So, investing all your money in one cryptocurrency is risky. It’s advisable to diversify your cryptocurrency investments to spread the risk.
5) Set up alerts:
Most crypto portfolio tracking tools have the option to set up price alerts. This can be unbelievably be useful where prices can change drastically in a short period.
Conclusion:
Profits from investing in crypto can be exciting. However, it also comes with its share of risks. That’s why it is crucial to monitor your crypto investment using tracking tools and never to put all your eggs in one basket. You should stay updated when trading and investing in digital assets.