If you are interested in cryptocurrencies and want to become a crypto investor/trader, you need to manage the transactions as well as monitor the prices. But, it is not that easy. You shall need software, which can help you. Some people may think that they will be able to manage all the operations with Excel spreadsheets without spending money on third-party software. However, you shall realize that Excel will not meet all your expectations due to the several manual entries. Most often you may miss out buying or selling time. Crypto portfolio managers help occasional and full-time traders and investors for managing and monitoring their portfolios.
A portfolio may have 3-9 different cryptocurrencies. Their rates and prices change often. So you cannot be sure of the amount of money you have. Prices go up and down in percentages on a weekly basis. A month in cryptocurrency is similar to a year in the real world. Even with small trade amounts it is very difficult to track your profits as well as losses. This is where you will wish to use a crypto portfolio tracker to centralize the coins at a single place- in a crypto app. There are several platforms that can track a cryptocurrency portfolio.
Features of a portfolio tracker
A cryptocurrency tracker is software that tracks the price changes of a crypto coin. Most cryptocurrency trackers are able to do other things such as sending out alerts and say whether your portfolio is losing or earning money. Some of the common cryptocurrency features are as follows:
- Analytical tools- Some trackers are able to produce a detailed chart that can help you conduct more research and look deep into price fluctuations.
- Customizable price alerts- Alters trigger when prices of cryptocurrency coins reach a certain threshold.
- Import functionality- Most of the cryptocurrency trackers are able to import data. Importing allows you to gather data from crypto wallets, cryptocurrency exchange accounts, and CSV files.
- Loss/profit tracking- The basic cryptocurrency portfolio trackers report only crypto coin prices; however, the advanced ones can say how well a crypto portfolio is doing.
- Crypto news- Most portfolio trackers offer the latest crypto industry headlines and news along with your portfolio data.
- Cross-platform sync- Some of the portfolio trackers that support more than a single platform such as web, mobile, and desktop have the features of data sync. Syncing enable you to view and update your portfolio data on multiple channels.
Why use a crypto portfolio tracker?
A cryptocurrency portfolio is convenient because it allows you to know how much worth is your portfolio without accessing your cryptocurrency wallet. If you have set up two-factor authentication, then you can access your wallet by using two passwords. Another reason to use a crypto portfolio tracker is that it can help you go deeper and locate the trading trends that you may have missed. Many cryptocurrency exchanges give the users access to technical charts. The cryptocurrency portfolio trackers can be used to offer adequate technical charts.