Other Ways To Manage Your Crypto Investment
As much as it is important to use crypto investment management apps and other tools, you wont go wrong by having other sources of information and guidance. One of the easiest ways you can get information crucial to your portfolio management is by being active in the communities of your respective assets. Some of them have very active communities with real-time information on developments that you may not find within your investment tracker.
You can find such communities on social media like Facebook, Twitter, Reddit, and Telegram. You may also follow influencers in the space that give valuable updates on price and other information. So this might help you make the best decision to manage your portfolio better.
What Is An Ico
ICO stands for initial coin offering. Many of the smaller projects in the crypto space and a few of the largest ones raised money from private investors around the world in the crypto equivalent of a crowdfunding campaign. Investors would send funds usually in the form of Bitcoin to the project and receive coin or tokens in return. Most ICOs happened in 2017 and early 2018 and used Ethereum as a platform of operation via the ERC-20 standard. In 2018, the United States Securities and Exchange Commission clarified their rules relating to fundraising for assets, which made it much harder for new cryptocurrency projects to issue their own tokens in this way. Since the appearance of the SEC guidance and the organizations heightened interest in regulating ICOs for U.S. citizens, the number of ICOs has been reduced substantially.
Crypto Portfolio Tracker Apps Review
Different crypto portfolio tracker apps have distinct features and their workings differ. Most allow you to add in all wallet addresses regardless of the host blockchain, so you can track the value of coin holdings and price in real-time and history. Hence, portfolio tracker software may have API integration with exchanges and other wallets.
The best crypto portfolio trackers help investors and traders to make real-time decisions and change their portfolios. Most contain advanced charting and value prediction tools to help users make timely decisions regarding their crypto holdings.
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Track Your Cryptocurrency Trades And Portfolio
Inquisitive, student, teacher and a wanna be story teller. Working on https://learningpaths.io/
I first heard about Bitcoin back in 2011 and spent some time reading about it. I found it interesting but never considered investing in it. Again in 2013 I had a discussion with a friend about working on a startup related to Cryptocurrencies. We did some preliminary research and then dropped the idea as the regulations were not clear in India about cryptocurrencies. I did think of investing some amount in Bitcoin but was not very comfortable with all the money being tied to a Private Key which I could end up misplacing somewhere. I had not heard of any Bitcoin exchanges back then and so I let go off my chance to get into Bitcoin Bandwagon when the price of Bitcoin was around 100 USD. I finally invested in Bitcoin in June 2017.
Understanding And Preempting Major Market Moves
For the purposes of this article, it is not necessary to know how a whale came to possess their coins. Rather, we focus on the existence of entities that have a holding large enough to possibly impact the market with a sizable transaction. Sharp movements in the market are often related to the markets liquidity specifically market depth and spreads. Whales, with their vast supply of coins, are able to temporarily drain liquidity and increase market volatility.
Because these major players are also trading to increase the value of their holdings, it is fair to assume that their transactions are aimed at moving markets in ways that benefit them at the expense of those on the other side of the trade.
A single whale, or a group, could potentially orchestrate a crash by selling a significant number of coins in order to instigate a wider market sell-off, only to then swoop in and buy back coins at cheaper prices. Similarly, they could also trigger a short-squeeze so that the assets price soars and attracts retail investors, whose buying pressure then amplifies the surge even more and thereby increases the value of the whales holdings.
Bitcoin surged on April 2, 2019, due to a 20,000 BTC buy order. Source: TradingView
We will discuss ways to identify such market moves later on in this article.
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Where Can I Track My Cryptocurrency Portfolio
Your crypto assets can be tracked by yourself by maintaining an excel sheet or related document. To make your life simpler, the following are some useful trackers to track your cryptocurrency portfolio.
|Cloud-based platform, completely freeProvides detailed analysis of portfoliosTax calculator||Exchange API sync unavailableApplication not updated regularly has bugs at times.|
Day Trading And Scalping
A crypto day trading strategy allows the trader to take full advantage of cryptocurrency assets price volatility. As mentioned earlier, virtual assets are currently extremely volatile, which works to the advantage of a day trader.
The day trading strategy is a game of numbers strategy. A day trader will make multiple trades within a day, buying low and selling high within little gains that compound to large sums by the end of the day. Typically, sometimes it gets hard to perform this manually. To succeed in thisstrategy, you will need to consider automating your trades using trading applications or crypto trading bots like Coinrule.
Important: It is not recommended that you begin your trading journey as a day trader. This is because this strategys fast-paced nature will require that you make fast decisions, and there is little room for research between trades.
Scalping is a part of day trading but typically involves concise trading periods. Think minutes.
When either day trading or scalping, many trades will result in both wins and losses. The idea is to make sure that the win/loss ratio is in your favor. Score more wins to consider your strategy a success.
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Crypto Etfs To Track As Bitcoin Fluctuates
Crypto ETFs, even if they are just as risky and volatile as the underlying asset, can at least be placed in the registered accounts offering tax benefits.
Bitcoin has dropped over 36% over the last two months. It peaked in early November 2021, but it has been all downhill since then. The Chinese governments breakdown of crypto miners can be considered the primary trigger. And the countrys attitude towards Bitcoin is shared by several other countries.
This negative performance has also given way to a negative long-term outlook. Up until a few months ago, a decent number of people had high hopes that Bitcoin might reach the US$100,000 in 2022. But a JP Morgan report indicates that only 5% of their customers believe its possible, and if we extrapolate from that sample, there is little hope surrounding Bitcoins new potential peak.
The crypto may not have fallen down enough for some value-crypto investors yet, but it is available at a relatively discounted price, and if you are among the minority that believes Bitcoin could hit a six-digit price tag, you may consider investing in the crypto. If you are worried about handling the digital asset itself, crypto ETFs might offer a better investment alternative.
Opening A Cryptocom Account
To create a Crypto.com account, download the Crypto.com app from the Google Play Store or Apple Store. Open the app and start by entering your email and choosing a password. New Crypto.com accounts are verified using your name, a picture of your photo ID, and a selfie. After that, youll need to link a payment method, such as a bank account.
If youre linking a bank account in the United States, youll be prompted to enter Know Your Customer details to verify your identity, including your name, contact information, and Social Security number. Fully verified users can deposit funds and make withdrawals up to Crypto.coms daily and monthly limits.
The new account setup process, including KYC verification, generally takes less than ten minutes. If youre a fast typer and have your ID handy, you can probably do it in five minutes or less.
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Best For Taxes: Cointracker
CoinTracker works on the web and mobile, and it includes free cryptocurrency tracking. Paid subscriptions give you the ability to view your performance over specific time periods, break down results by currency, take advantage of tax-loss harvesting and more.
If you want to generate the tax reports needed to file your annual tax return, you can buy an annual package to generate everything you need. The tax prep package is an additional cost to the portfolio assistant, which is not ideal. But the free portfolio tracker may be useful for you anyway.
I use CoinTracker myself on both the web and my Android phone to check in on my cryptocurrency portfolio balance every day. I like that I can quickly see my total balance, total crypto asset gains, 24-hour performance and balance by cryptocurrencies all in one place with a clean and easy-to-understand interface.
What Are Cryptocurrency Portfolio Trackers
As the name implies, crypto portfolio tracker apps help you monitor all of your crypto portfolios and balances in real time, with one centralized app.
Once youre logged in and have all of your crypto portfolios, APIs and accounts added, your portfolio tracker will automatically update and show your digital currency balances in one place.
Similar to apps like Mint, Personal Capital or Quicken for your traditional bank and investment accounts, crypto portfolio trackers save you a ton of time when you have multiple crypto portfolio balances to check. If youre a serious crypto trader, you likely have multiple crypto exchange accounts, a hardware wallet and perhaps a paper wallet sitting in a fireproof safe for good measure.
Using a crypto portfolio tracker, you can see the holdings of all of your portfolios with just a tap on your phone or click on your computer. Thats a convenient and fun way to track your crypto assets and a major time saver too.
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How Does The Irs Know If You Have Crypto
Many crypto investors are convinced that because of the anonymous, decentralized nature of blockchain and crypto transactions, there is no way for the government to see or know that they are making money trading/buying/selling cryptocurrency.
Itâs important to keep in mind that blockchains are distributed public ledgers, meaning anyone can view the ledger at any time. Figuring out an individualâs activities on that ledger essentially comes down to associating a wallet address with a name.
The IRS uses data matching to crack down on tax fraud. In the past, the agency has worked with contractors like Chainalysis to analyze blockchain transactions and identify âanonymousâ wallets.
A High Level Of Security
Cryptocurrency is digital money that is managed by a decentralized network called âblockchain.â This network isnât owned, regulated, or tracked by any specific authority or institution. This, of course, means that crypto ownership is hard to track and crypto transactions are nearly impossible to reverse once theyâve been initiated.
But what does that mean for cryptocurrency portfolio trackers?
That they better have their security locked down tight.
Since portfolio trackers connect to their customersâ crypto accounts, they have to be careful not to let in any malicious actors that would go through them to get at user logins for a variety of financial institutions.
Itâs not too hard to find out which crypto portfolio trackers take security seriously. Check out their websites to ensure they encrypt the data they manage and that they use two-factor authentication whenever possible. Bonus points for trackers that donât even access their usersâ account credentials and let their trusted aggregator services handle that delicate information instead.
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Tax Reporting For Automated Traders
In the simple example above, its easy to calculate the $300 capital gain that would be associated with Craigs trade however, for traders using automated strategies or trading across multiple exchanges, these calculations can become much more difficult.
Each crypto-to-crypto trade triggers a taxable event , meaning you realize either a gain or loss in the cryptocurrency you are disposing of . As you might expect, tracking the US dollar value of your gain and loss across all of your crypto-crypto trades is difficult. Thus, proper record keeping is important for algo traders who want to simplify their tax reporting at the end of the year.
Zerion For Defi Portfolio Tracking
Are you investing in De-fi via Metamask, Argent or any other decentralized finance supported wallet? Wondering how you can track your portfolio gain or loss? Well, this is where Zerion come into the picture.
This tool let you Manage your DeFi portfolio across multiple accounts in a single place. Some of the popular DeFi wallet supported by Zerion are:
All the solutions I have listed above have their pros and cons. What will work for you is completely dependent on your style of investing and trading.
If you are someone who has been holding long-term coins and has started trading once in a while on Binance, Bitfinex, Binance futures, or any other site, you cant rely on a simple app. For you, the best app is CoinTracking.
For someone who wants to buy a couple of long-term cryptocurrencies and plans to hold it for months or years to come, you are better off with the Cryptocompare portfolio app.
If I have to pick one for someone who is starting out with the intention of getting serious in the crypto investment and trading, I would recommend CoinTracking. It solves the major headache of taxation and even if you are dealing with 100+ cryptos, it magically shows you your profit and loss.
Moreover, the kind of data it provides, you can easily do day trading and make a lot of money just by buying/selling when a coin value has grown or decreased. I will talk more about this in a dedicated post in the coming days.
Also, check out:
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Its Ok But Nothing Seems Better Yet
This app is pretty good, though i think it is displaying some data from apis wrong. Some cost averages are incorrect as well as a few other things. Also, no support for voyager. I really do use this app all the time, but they need to up their game. Id love to have better statistics on all of my portfolios. That whole feature kinda of seems like no thought was put into it. Also, providing better charts would keep me in this app longer, instead of hopping to trading view and tbh staying in that app longer. The coinstats charts are weak and could be improved. I like the api integration and its great that it tells cost average, as some exchanges/brokerages dont show this and i need to do my own math to find it. Those are the 2 reasons keeping me on this app. Tbh, if a newer shinier portfolio app comes around with trading view chart integration and better stats, ill move in an instant. For now, i guess i have to just hope coinstats are working on some nice uptatesFor the cost of this app, it could be a lot better.
Best Crypto Portfolio Tracker Apps
Review and compare the top Crypto Portfolio Tracker Apps with features and select the best Portfolio Tracker for investors and traders:
Cryptocurrency portfolio tracker allows you to track the total amount and value of your cryptocurrencies across all wallets, exchanges, platforms, and blockchains in real-time.
These apps let you track historic transactions, their worth, and destinations or sources. They also give the actual live price of any cryptocurrencies they support. Some support trading assets held on multiple exchanges but on one platform.
This article reviews the top best cryptocurrency portfolio tracker apps for all platforms, whether iOS or Android mobile, web-based or PC-based.
What You Will Learn:
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Best For Premium Features: Coin Marketmanager
If youre willing to put down some coin for a premium crypto tracker, Coin Market Manager is a top choice to consider. The free version includes basic portfolio features. The pro version gives you in-depth trade tracking and analysis thats perfect for serious crypto enthusiasts.
You can view real-time balances, real-time profit and loss data and all digital currency positions from a huge number of supported wallets and exchanges such as ByBit, Binance, BitMEX, Deribit and BITTREX all in one place.
The history view charts and account analytics give you powerful insights into your cryptocurrency portfolio and history. These are beyond what youll see with most competitors. Of course, this comes with a price tag .
The Pro version costs $49 per month when paid monthly, or save $100 per year by paying for a full year upfront. The enterprise version, which most people wont need, costs $59.99 per month when paid monthly or save $120 when paying for a full year at a time.
What Happens If You Dont Report Cryptocurrency On Your Taxes
If the IRS has reason to believe that youâve committed tax fraud, thereâs no limit to how far back they can audit you. Years down the line, investors may be hit with an audit and a tax bill they cannot afford.
You may be wondering whether your past cryptocurrency activity is even taxable. In most cases, the answer is yes.
If you were trading cryptocurrency at any point in the past few years, you need to report these transactions on your annual tax return. To learn exactly how the IRS treats cryptocurrency, read through our detailed guide: The Complete Guide to Cryptocurrency Taxes.
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