Following your crypto portfolio should be as simple as a walk in the park, right? In the always changing crypto market, where innovations and new features are offered on a rapid pace by different players, crypto portfolio tracking is becoming a more complex topic.
What is a Crypto Portfolio?
A crypto assets portfolio is a series of investments across a number of digital assets. It could be a combination of Bitcoin, Litecoin, Ethereum, Dogecoin or others, with different weights to suit the risk appetite of the investor.
The exact mix of assets isn’t relevant to the definition, but you may want to focus on the exposure you get and on the weights that are right for you.
How to set up a Crypto Portfolio?
Step 1: Asset allocation
Since the goal of a financial portfolio is to optimize returns for your tolerance of risk, you need to know how to best determine an asset allocation that conforms to your personal investment goals.
Step 2: Build portfolio by choosing the initial weights for each asset
As with more conventional investments such as stocks and bonds, crypto assets portfolios should contain a good balance between investments. In the case of the crypto market, this can mean splitting those investments between more established projects like Bitcoin or Ethereum and more innovative new providers.
Step 3: Rebalance portfolio based on market conditions
Once you understand how to set up a portfolio, the next step is to keep pace with the ever changing crypto market.
What is a Crypto Portfolio Tracker?
A crypto portfolio tracker is an application (mobile or web) that lets you know how much your portfolio is worth at any given moment. It will track and display your investments in multiple crypto assets in real time.
The software connects with various exchanges to provide updates and to display current balance to the users. Many will also connect your crypto wallets.
Why do You Need an App to Follow Your Net Worth?
As mentioned in the beginning, crypto portfolio tracking becomes more complex with diversification. And we know you should diversify.
Many crypto exchanges deal with a restricted number of crypto assets while others offer different functionalities. You may use staking on Kraken or Earn on Binance and at the same time trade Futures on FTX. In order to build a diverse portfolio, multiple exchanges are needed. That’s why crypto portfolio trackers come to the rescue: they offer a unified dashboard where you can follow your entire net worth, just one click away.
With a rising number of crypto assets and exchanges, it makes sense to utilize a crypto aggregator to easier follow your investments. Of course it’s possible to use traditional spreadsheets, but this is time consuming and requires constant monitoring and manual updating.
In contrast, by having all crypto in the same place, you can instantly assess your net worth overview and automatically monitor profit and loss. Essentially, a crypto tracker gives back your time. Now you can put more focus on your investment decisions or simply enjoy your profits.
How to Track Your Crypto Assets Portfolio
It’s important to know how to manage a crypto assets portfolio effectively, without giving away most of your time. As hinted at in the previous section, there are really only two ways in which to do this:
One option would be for you to undertake the task yourself by utilizing spreadsheets and updating your results manually. There are crypto traders who keep track of their crypto in this way and some may prefer it. It may feel that it gives them a greater sense of control, but in the end it’s just Excel :)
Obviously, a better solution lies in finding a tracker. The most flexible of these can be used as an app for iOS and android, as well as the web, and they return real time results. You can monitor as much as you want, as the platform will automatically sync your balances across exchanges.
How to Choose the Best App to Manage Your Portfolio?
There are many crypto trackers on the market. So how do you choose the right one?
You should be looking for a portfolio tracker that ticks a number of boxes:
- It should integrate with an extensive range of financial institutions. As we’ve seen, there are many potential exchanges and an increasing number of outlets where crypto can be purchased.
- There are more than 11k tokens on the market at this point so an effective crypto tracker should integrate as many assets as possible.
- New assets should be added as soon as they hit the market. Make sure your preferred solution reacts fast.
- Real time results with 24/7 monitoring is a must. Needless to say, the data gathered from those various exchanges should be accurate.
- A crypto tracker should be secure. In a crypto world where hacks are tried every day, you want to work with the best technology.
Why Choose Vestinda to Track Your Crypto Portfolio?
Vestinda successfully checks all of those essential requirements. On top of that, it’s free for new sign ups during Private Beta.
Meet Vestinda’s portfolio tracker superpowers:
- Accurate history of the portfolio shown on a chart from the moment you connect your exchanges.
- Automatic syncing of assets from the connected Exchanges – you don’t have to manually enter each of their assets balance or trades.
- Great UX – you can monitor your portfolio both on desktop and mobile, 24/7 at one click. Multiple charts and different views give you a simple and crisp overview of your holdings.
- The portfolio tracker will allow you to isolate and monitor a specific exchange. With a click of the button you can switch back to the unified dashboard which outlines all of your investments in full.
Want to check out these superpowers?
Create your account and follow your net worth smarter with a best in class crypto portfolio tracking app!