Crypto Portfolio Tracker - Why Do I Need One?

May 4, 2022 04:21 PM ET
Crypto Portfolio Tracker - Why Do I Need One?

Cryptos are rapidly gaining traction. Because of the increased attention they are receiving, the crypto community's user base is growing exponentially. Keeping track of your cryptocurrency portfolio can be difficult, particularly if you have many coins and tokens to handle. 

Crypto portfolio trackers are one of several tools available today that may help you keep organized, informed, and up-to-date on all the newest developments. One of the most crucial aspects of crypto trading is productivity. We'll look at some of the important features and elements that constitute a solid crypto portfolio tracking tool.

Why is a portfolio tracker a necessity?

They assist in establishing and achieving financial objectives

One of the most significant aspects of a crypto portfolio tracker is that it consolidates data from disparate sources into one easy-to-understand place. This makes one's financial data easier to interpret and digest, which places one in a better position to develop and follow well-informed financial goals.

They enable you to be aware of the worth of your crypto holdings

Every minute the value of each coin varies, often violently. If you have numerous coins to track, it is difficult to add up the worth of your assets across a variety of crypto exchanges before they change, and you have to start over. A comprehensive tracker can help you gain a solid image of the worth of all your different crypto coins at a glance before making a significant trade.

They keep your portfolio well-diversified

Good crypto portfolio trackers allow investors to diversify their holdings without becoming overwhelmed or losing track of all their currencies. When markets have their regular ups and downs, well-diversified portfolios are often insulated from substantial losses and frequently provide higher returns than poorly diversified portfolios.

They keep you informed about market shifts and opportunities

Crypto assets are extremely volatile. They go through wild swings for small reasons, such as the influence of a popular figure. And for investors eager to make a move, these huge swings might present possibilities. But, you can't accomplish that if you don't have a clear picture of your purchasing power. With a robust crypto portfolio tracker, you can get that kind of view and act on them quickly.

Which are the factors to look for in a crypto tracker?

Design and user experience features

A crypto tracker consists of two parts: a price tracker and a portfolio tracker.

The price tracker should feature live price charts and provide real-time information on the prices of over 1,000 coins and tokens, especially the ones you want to invest in. It should also provide information about each coin's overall market capitalization and 24-hour trading volume.

Users should be able to track their holdings of various currencies and tokens using the portfolio tracker, which displays their average cost per coin or token as well as their total holdings. The portfolio should be minimalistic and easy to use.

Number of exchanges supported

With as many exchanges as possible integrated, you'll be able to log in to all of your accounts in one spot and execute trades with only a few clicks. This enables you to react quickly in the event of sudden volatility. One can view their balance easily when all the exchanges they use are integrated into the tracker. The most common exchanges to look out for include Binance, Bitfinex, Bithumb, Bitmex, Bitstamp, Blockchain.com, Bybit, Cex.io, Coinbase Pro, Crypto.com, Exmo, FTX, Gemini, HitBTC, Huobi Global, Kraken, KuCoin, Kuna, Liquid, OKex, Poloniex, and Yobit.

Backup and security

The security and backup features of the cryptocurrency tracker assist you in keeping your investments safe. It should contain a strong password as well as an optional password that can be used to lock down your account in the event of a breach. Some offer fingerprint authentication as well.

It should also incorporate two-factor authentication (2FA), which is an additional layer of account protection. It protects you by making it more difficult for someone who knows your username and password to sign in to your account.

End-to-end encryption (E2EE) should also be included. This is a secure communication mechanism that protects data from being accessed by third parties while it is being moved from one end system or device to another.

Cryptocurrency alerts and news

A cryptocurrency portfolio tracker is just as good as its capacity to keep you informed about your cryptocurrency's performance, trading, and market happenings in real-time. Users should be able to quickly filter down to their preferred categories, as well as add individual cryptos.

Users should be able to see all news relating to specific coins in one spot when they select them. The news information can be provided by email or SMS alerts, allowing you to get the most out of your monitoring experience.

Some trackers have journals on their websites as well. Users utilize them to keep track of their trade settings, risk management strategies and predicted outcomes.

A simple and clear design

The goal of owning a portfolio is to be able to easily examine all of your assets and see how their value fluctuates. On the homepage of a good portfolio tracker, or with just one or two clicks, you should see the overall worth of your portfolio.

Your tracker should be straightforward to use and understand, and you shouldn't have to fight to figure out how much each coin in your portfolio is worth. Look for a tracker that has a simple, clean design that you want to look at and use. This will save you time, worry, and eye strain.

Summary

Managing and tracking the performance of your cryptocurrencies is one of the keys to becoming a successful trader and investor. The purpose of a crypto tracker is to help you set and achieve financial goals, keep track of the value of your crypto assets, diversify your portfolio and stay informed about market moves and possibilities. There are some features to look for in a good tracker, and we've covered the most important ones in this article.

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