Dos and Don’ts of Using a Crypto Portfolio Tracker Like a Pro
Just like stock investors, crypto investors need to keep track of all their investments. A crypto portfolio tracker is a type of application using which one can monitor the overall performance of their digital assets. That is not all; an app like that enables users to take necessary chances whenever required. But not all crypto market participants have knowledge about how to use crypto portfolio trackers properly. For this reason, many crypto enthusiasts find it difficult to avoid losses when the broader market suffers from bearish sentiment.It is a bit difficult to choose among the crypto ad netowrks
In the age of internet money, it is difficult to take even a step further without a crypto portfolio tracker. To assist crypto enthusiasts, we have shared 5 dos and 5 don’ts of using crypto portfolio trackers in the following. Consider the information below as “best practices” and make your decisions accordingly to experience better results overall.
Dos for using crypto portfolio trackers:
- Making sure that the user always has ownership of their keys is of paramount importance. There are different types of crypto wallets and portfolio trackers available in the market, but if you wish to avoid having your funds stolen, then self-custody is appropriate for you.
- The crypto market is considered to be highly volatile and constantly changing. Now that it has gone mainstream, investors from around the world are pouring money into buying and holding digital assets. As market movements can be easily swayed, make sure to check the market overview often.
- A balanced crypto portfolio is always one that is appropriately diversified. But how does a beginner investor find the best-performing cryptos to invest in the first place? An ideal crypto portfolio tracker shares real-time news and accurate market data, enabling one to choose a coin and add it to their portfolio.
- Most crypto portfolio trackers have been integrated with a third-party aggregator from which their feed receives market-related data. All of this real-time data is then displayed on each user’s feed. So it becomes necessary for one to prefer a tracker app that has been integrated with a range of data aggregators and shares error-free data.
- People who have been using crypto portfolio trackers for a long time understand that their dashboards take a while to perfect and personalize. Your crypto portfolio dashboard should be created in such a way that it gives you all the information and data you need in a short amount of time. But instead of setting it up by yourself, you can take advantage of automation to do the job quickly and expertly.
Don’ts of using crypto portfolio trackers
- Sharing your password as an investor who owns a crypto portfolio could be the worst mistake you make. Among several other risks, crypto investors are always at risk of having their funds stolen or their accounts hacked. To avoid such a thing, one should keep a backup of their passwords, passphrases, keys, etc.
- If your crypto feed is too crowded with irrelevant information, then it could be difficult to notice important alerts that affect your crypto portfolio. You must tap into the best features of a crypto portfolio tracker and customize it in a way to provide only what you are interested in.
- There are many alternatives to crypto portfolio trackers within the crypto industry, but not all of them are ideal for use. Many scam portfolio trackers target mostly new crypto traders who have limited knowledge about how to choose an ideal portfolio tracker. Do not trust over-marketed applications and tools; make a sensible choice.
- Not accepting the unification of your entire crypto portfolio can be a mistake when you have a hard time understanding what could influence your digital wealth. Just like portfolio diversification is important for crypto investors, portfolio unification also requires a place in your investment plans. Through unification, a crypto portfolio tracker can unify your entire crypto portfolio on the dashboard. Unification can also condense your total net worth and other important statistics.
Having a crypto portfolio tracker to keep track of all your crypto holdings is ideal for all crypto market participants. Similarly, with the help of aforementioned knowledge anyone can make the most out of it.