Crypto Basics Crypto Metrics

Five Reasons To Use A Portfolio Tracker

As the crypto market is becoming more mainstream, diverse and complex, and you feel yourself becoming eager to invest in a variety of cryptocurrencies, it is probably wise to turn to portfolio trackers to keep tabs on your performance. The global cryptocurrency market is open 24/7, with plenty of liquidity available for crypto assets competing for investor attention. Staying on high alert about the latest crypto news without a portfolio tracker is a full-time job in itself. And still you may miss some important info about cryptocurrency prices, trading activity, supply fluctuations, market capitalization, breaking crypto news and other key metrics. Furthermore, there are advanced tools a crypto tracker will offer, giving you an edge over other non-tracker users such as personalized portfolios, conversion rates between different cryptocurrencies, or strategic filtering.

What are the different types of portfolio trackers?

There is a large variety of cryptocurrency portfolio trackers out there. Some of the most popular ones available today are CoinMarketCap, CoinGecko, Blockfolio, CoinCodex, and CoinCheckup. Most of them are free-to-use and come in the form of an app, however others are paid and provide enhanced performance metrics, including graphs and pie charts. Some even provide tax calculations as well.

Of course, if you choose to go without them because you want to get really deep into the crypto space by researching on your own, have a lot of free time on your hands and value your security above all else, then keeping track of your portfolio performance manually is the way to go.

Having said that, let’s get right into it with the important question:

How can a crypto tracker improve your cryptocurrency trading?

1. Monitoring coins that are not listed on your exchange

Laying all eggs (coins) in one basket is generally speaking a questionable asset allocation strategy. Diversification of your investment portfolio maintains a healthy risk tolerance, bringing you closer to your financial goals. There are thousands of cryptocurrencies to consider in your investment account, ranging from top assets like Bitcoin and Ethereum to alternative altcoins with market capitalization of $10 million or even less. Portfolio trackers may help investors make better informed decisions and in turn help you reach your investment goal faster. Coins which are not as popular but are forming a strong buy momentum are tagged by the portfolio tracker offering good buying opportunities.

2. Creating personalized watchlist and portfolio

Crypto trackers offer portfolio management tools such as creating a personalized watchlist of cryptos you’re interested in. This allows your investment strategy to be optimized with the coins you like, filtering out your favorites. Personalized watchlists are a great tool to keep an eye on coins you don’t own yet, but think that they will have value in the future. Most of the crypto trackers also offer a portfolio feature to help you track the performance of your already owned cryptocurrencies. Portfolio trackers may also support you in your personal finance if you’re holding crypto funds across several exchanges, they can easily track the aggregated performance of your holdings in one place.

3. Setting up cryptocurrency price alerts

Just like in the stock market, crypto market users can set up automatic alerts when price thresholds are met by any asset class, however only for assets that users already own. Crypto trackers make it possible to set up alerts for coins that you might not own yet but are interested in. These notifications can be received via email, text message or both, making it hard to miss. Furthermore, you can set up price targets that you believe are short-term support or resistance levels or other more “ambitious” alerts that will most likely take weeks or even months to trigger.

4. Monitoring the latest news from the cryptocurrency sector

In addition to these features, portfolio tracking provides real-time crypto news updates to keep you informed about the latest crypto investment opportunities. Typically, most trackers will allow you to filter news on a coin-by-coin basis, supporting you with swift decision-making opportunities about your tracked coins. In that light, monitoring crypto news can also be beneficial to determine when cryptocurrencies are making price moves on fundamentals, or whether the price action is primarily driven by speculation factors. This, in turn, will lead to better trading and investing decisions in the future.

5. Swiftly identifying the best and worst performers

Time is of the essence and crypto trackers make sure that your investment research is swift and targeted, providing you with a big-picture view of the crypto market. Traders would typically check their crypto trackers multiple times a day to see which coins are making waves across the market. This way you can easily identify coins which have strong past performances, as well as any current ones making waves.

Whether you are an ETF or crypto trader, one thing is sure, portfolio trackers make life easier. Crypto trackers are very popular among the crypto community and if you are not using one yet, trying them out would most probably enhance your investment management strategy.

Let’s face it, trading any market can often be a difficult and risky endeavor. This is especially true for the crypto market. Day traders, swing traders and long-term investors need all the useful information and tools they can get. Glassnode, the crypto industry’s leading blockchain data and intelligence platform, equips investors and traders with the most comprehensive on-chain insights to help them make better investment and trading decisions.

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