Best strategies to track performance of your cryptocurrency investments

Fredrick Awino
28.06.2022
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In recent times, we have all witnessed an increasing number of people investing in cryptocurrency while others too still think hard about it. Whichever of the two sides one belongs to, the reality is that cryptocurrency news is spreading and information becomes clearer with each passing day. Given a chance and with money, so many people would not think twice about trying their luck in crypto. Yet, the chilling news of investors losing crypto fortunes to the tune of billions of dollars may easily confuse ambitious investors. 

WARNING: Investing in crypto, or other markets, can be of a high risk for your savings. Do not invest money you cannot afford to lose, because there is a risk for losing all of your money when investing in crypto, stocks, CFDs or other investments options. For example 77% of retail CFD accounts lose money.

Seasoned investors will tel you that it is never possible to reap big without taking risks. All an investor in cryptocurrency needs to watch out for is that risks are identified and managed correctly. Veteran crypto investors have already publicly expressed confidence that investing in the digital currency is actually a budding option for growing forties. Investors only need to identify areas of risks, monitor performance for red flags and work around volatility trends. 

Important notes for starters in cryptocurrency investing 

Starting investing in cryptocurrency has been a common trend lately. Whether motivated by success in the media or having interacted with someone who has made it big with crypto, the motivation runs deep and it’s to make big money.

Investing in cryptocurrencies is adventurous and keeps you at par with the present developments in digital trading. However, it still remains to be a risky venture. The riskiness of trading in cryptocurrency is caused by two important attributes of uncertainties and fluctuations in the market. 

It is possible that you can make huge profits within a short period of time from your crypto investments. But there is also a huge possibility of incurring a great loss. Among the numerous cryptocurrencies, having the potential of tracking the profits and losses of your investments can prove cumbersome. 

On many occasions, as a cryptocurrency investor, you may miss on a few significant details. In the end, you may experience an issue of mismanaged cryptocurrency investments. This is very true for an investor with a diverse portfolio. Therefore, it is a spontaneous move to use a cryptocurrency investment performance tracker to consolidate all your investments under one roof.

There are several cryptocurrency investment performance trackers that will help you track down your performance. But first, have a look at some of these few key details necessary before learning how to track your crypto investment performance.

Strategies to make fortunes from cryptocurrency investment 

Every cryptocurrency investor hopes to win which means losses are just by bad luck. Like any other investments, it is still possible that things go wrong even after trying all means possible in managing them. While we appreciate that crypto investment may act in the same way, we propose the following strategies that have been tried, at least to reduce chances of losing your money. 

1. Understand the Meaning of a Cryptocurrency Portfolio Tracker 

Often there are numerous success stories of how people make huge profits in crypto trading. For any success story there must surely be a sacrifice to be made by getting to understand the critical details in cryptocurrency. It is also not always easy to understand the complex terminologies used in the world of crypto. 

The terms used in cryptocurrency are confusing and mind blogging. However, the term cryptocurrency portfolio tracker is a simple term that need not to confuse you. A cryptocurrency portfolio tracker simply represents a digital platform. It can either be in the form of a website or an application that enables you to keep track of your investment performance. 

In the end, you can be able to critically manage your investment portfolio accordingly. As an investor who actively trades in more than one type of cryptocurrencies, a cryptocurrency investment portfolio tracker is your best choice. It will help you track and manage your assets appropriately. 

2. Understand the Significance of Tracking Performance of your Cryptocurrency Investments

Cryptocurrency investment represents a progression and not a setback. Cryptocurrency has enabled a possibility of technology to ease transactions and make the exchange process greatly convenient. For this reason, it is essential that you keep track of your investment and other assets.

Often, it is very easy to manage and also achieve growth out of something that you are able to measure and track. There is no any other place that tracking of your investments is as important as it is with cryptocurrency. 

Cryptocurrencies are very volatile. Hence, the need to track performance of your cryptocurrency investments. Moreover, maintaining a well-diversified investment portfolio with a consistent balance is a priority to keep your investments in good direction.

Presently, big players like PayPal have entered into the crypto realm. Seeking for the best performance is the limit. Therefore, it is vital to have tools in place that will assist you in keeping track of your cryptocurrency investment performance. 

3. Master the Available Criteria for Selecting the Best Tool for Tracking Performance of your Crypto Investments

In the present cryptocurrency market, there are numerous tools available for tracking performance of cryptocurrency investment portfolios. In most instances, these tools are presented without clear explanations on their features which actually makes them fit for the role. It is therefore important that there is a criterion against which you can rely on while comparing your available options. 

  • Check if the Tools available Integrate with a Range of Financial Institutions

To enable a cryptocurrency portfolio tracker to integrate into various crypto data feeds, there is need for a third-party aggregator. This will make it possible for a crypto portfolio tracker to display the very information that you need to track performance of your investment. 

Most aggregators will only work in specific countries with specific technology to work on a selected crypto feed. What this means is that, not all the available crypto portfolio tracking tools will work for every case. So, you must be sure to see if the available tool works in your specific region and scenario.

  • Offer a High Security Level  

The blockchain network managing the cryptocurrency digital network is neither regulated nor tracked by any institution. This makes it very complex to track either the ownership or transactions of cryptos. Therefore, a cryptocurrency portfolio tracker of your choosing must ensure a high level of security. This tool should not give room for entry of any malicious actor.

  • Ensure its Usability is Automated

A cryptocurrency portfolio tracker must allow for ease of use through automation. The single reason for having this tool is to allow you to create a single dashboard to keep an eye on all your investments. Why not go for a toll that enables you to see your portfolio performing in a single glance.

  • Ensure a Tool that offers an Entire Portfolio Unification

Cryptocurrency is a risky venture surrounded by lots of uncertainty. Keeping a well-balanced and diversified portfolio is key and this is only possible by keeping a track of your performance. But diversification in cryptocurrency can be very difficult to understand how all the asset classes work to build your portfolio. 

What you have to do is to look beyond the portfolio trackers that are described to be “crypto only”. Narrow your cryptocurrency portfolio tracker search on a more robust solution to unify your entire portfolio in a single dashboard. 

 

Author Fredrick Awino