Achieving success in the crypto market does not just depend on you investing in the right projects. It also requires you to master the art of managing your crypto portfolio. Proper portfolio management helps you to maximize returns while balancing risks. This article explains the importance of managing your cryptocurrency portfolio and the tools to use.
Understanding Crypto Portfolio Management
Crypto portfolio management is the practice of picking and allocating funds to certain crypto projects to minimize risks and optimize returns. As an investor, you are advised to diversify your investment fund across different crypto assets and make adjustments according to market conditions.
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Why Should You Manage Your Crypto Portfolio?
The concept of managing an investment portfolio was first introduced by economist Harry Markowitz in the 1950s. It advocates optimizing profits and balancing risk based on an investor’s risk tolerance and financial goals.
The first step of crypto portfolio management involves defining your investment goals. After that, you are supposed to find the right crypto projects to help you achieve those objectives. Once you buy your ideal crypto assets, you must monitor your portfolio’s performance to make changes where necessary.
Tools for Managing a Crypto Portfolio
Many crypto investors find it challenging to monitor their portfolios. But don’t worry. There are several tools in the market that can make your portfolio management work easier. They include:
You can use this app to track your crypto, mutual fund, and stock investments simultaneously. Delta supports more than 10,000 financial instruments. It also allows you to connect trading accounts from 250 crypto exchanges and brokers.
On the dashboard, Delta will display the performance of your portfolio, trading fees, and risk levels, letting you make appropriate investment decisions. Moreover, the app displays real-time prices of the assets along with the factors fueling their movements.
You can connect multiple wallets and trading accounts of various exchanges to this app. It supports more than 18,000 crypto assets. Unlike Delta, CoinStats has an in-app exchange that lets you trade digital currencies across multiple platforms, including Coinbase and Binance. The app also gives you access to decentralized finance to explore more income-generating opportunities.
On your CoinStats dashboard, you will be able to see your transaction history, profit/loss, and the balance of your portfolio.
Besides being a reliable crypto portfolio management app, Uphold allows you to trade various financial instruments, including crypto, commodities, and precious metals. Its user interface is beginner-friendly, so new investors do not need guidance in navigating it. What makes Uphold unique is that it does not charge hidden fees. However, it supports fewer assets (250) than its competitors.
With Bitsgap, you can monitor assets held in your accounts of leading crypto exchanges like Kraken and Binance. Bitsgap comes with trading bots to help you automate your trading strategies and maximize your profits. The app supports more than 1,500 assets.
eToro is popular for its copy trading feature, which allows you to follow the trades of successful traders. However, its crypto wallet app comes with functionalities that help you to manage your investment portfolio effectively. As of September 2023, eToro supports over 3,000 financial instruments, allowing investors to diversify.
How to Pick the Right Crypto Portfolio Management App
If you are looking for a tool to manage your cryptocurrencies, here are some aspects that you should consider:
- The app should have the capability of connecting to multiple crypto exchanges.
- It should route your trades to help you get the best deals.
Past and Real-Time Data
- The app should provide past and real-time market information.
- It should also provide insights into the performance of your portfolio.
Types of Assets Supported
- Ensure the app supports different types of cryptocurrencies so that you are not limited to the assets you can monitor.
Whether you are just getting started or you’re a seasoned investor, crypto portfolio management plays a key role in helping you realize your investment goals. Make sure you pick the right tool to enable you to manage your portfolio with ease.