Strategizing Bitcoin Investments: Tracking For Success

Bitcoin and other cryptocurrencies have become increasingly popular investment options, but their volatile nature makes it challenging to manually monitor your investments and their performance. A crypto portfolio tracker is a powerful tool that allows you to manage and monitor your cryptocurrency investments in one place. These trackers provide real-time updates on your investments' value, help you balance your portfolio, and make informed decisions about buying, selling, or holding. They also simplify tax reporting by providing detailed records of your trades, profits, and losses.

When choosing a crypto portfolio tracker, it's essential to consider security features, the range of coins and exchanges supported, user-friendliness, and cost. Some popular options include CoinStats, Delta Investment Tracker, Blockpit, Altrady, and Kubera. These tools can help you effectively manage your Bitcoin investments and make strategic decisions to grow your portfolio value.

Use a crypto portfolio tracker app

Crypto portfolio tracker apps are a powerful tool that allows users to monitor the performance of their cryptocurrency investments in real time. By connecting to various wallets and exchanges, these trackers can provide a comprehensive view of your crypto holdings and help you track your net worth over time.

CoinStats

CoinStats is an all-in-one portfolio tracker that enables you to buy crypto directly on the platform, connect your wallets and exchange accounts to track investments, as well as earn from your holdings by staking or by beating the NFT market through their CoinStats Midas tool. The platform supports over 20,000 tokens, 300 crypto exchanges, and 1,000 DeFi protocols on 10+ chains. CoinStats also offers a free basic plan, with paid plans ranging from $13.99 to $62.91 per month.

Delta Investment Tracker

Delta Investment Tracker supports over 10,000 tokens and 300+ crypto exchanges, allowing you to see how your tokens are performing without signing up for multiple accounts. It is an eToro product that allows you to track your stocks, ETFs, and other investments alongside your crypto. You can see pricing in your local currency and sync multiple devices. Delta offers a free plan, with the Delta Pro plan costing $12.99 per month.

Blockpit (formerly Accointing)

Blockpit connects to your cryptocurrency exchange accounts and supports over 300 different exchanges and wallets, making it easy to track your portfolio and file taxes. Instead of manually entering every trade, you can simply connect your crypto wallets and exchange accounts, and Blockpit will track your whole portfolio precisely. Blockpit offers four pricing plans, ranging from $49 to $639.

Kubera

Kubera lets you connect all your financial accounts, including crypto, in a single space, making it simple to understand your net worth with crypto. Kubera offers a personal plan for $150 per year, a white-label plan for $150 per month, and a black plan for $999 per year.

The Crypto App

The Crypto App offers an expansive tracking tool with customizable crypto watch lists, dynamic overviews of coin performance, and powerful advanced charting. Its portfolio manager lets you centralize data from all your self-custodial wallets and accounts on various exchanges into one place. The Crypto App also offers a personalized news feed powered by top media names in the crypto space. The basic plan is free, with the Pro and Pro+ plans costing $8.99 and $14.99 per month, respectively.

Monitor your trades and transactions

Monitoring your trades and transactions is essential for keeping track of your bitcoin investment. Here are some tips to help you stay on top of your crypto activities:

Use a Crypto Portfolio Tracker

Crypto portfolio trackers are powerful tools that allow you to monitor the performance of your cryptocurrency investments in real time. They connect to your wallets and exchanges, providing a comprehensive view of your holdings and net worth. Examples include CoinStats, Delta Investment Tracker, and Blockpit. These platforms offer enhanced security, portfolio analytics, financial planning, and tax reporting tools.

Manual or Automated Tracking

To track your trades and transactions, you can either enter them manually or use automated methods. Manual tracking involves recording all your purchases, withdrawals, and trades in a spreadsheet or similar tool. Automated tracking, on the other hand, involves using APIs or exchange imports to sync your trades directly from exchanges or wallets. Some platforms, like Cointracking, offer both manual and automated tracking options.

Track Across Multiple Exchanges and Wallets

If you trade on multiple exchanges or hold bitcoin in different wallets, it's important to track your activities across all platforms. Ensure that you can import data from all your exchanges and wallets into your chosen tracking tool. This will give you a comprehensive overview of your portfolio's performance.

Utilize Notification Features

Some crypto portfolio trackers offer notification features that alert you when transactions occur in your wallets. This can be helpful for staying on top of your trades and investments, especially if you have multiple accounts to monitor.

Keep an Eye on Fees

When tracking your trades and transactions, don't forget to consider the fees involved. Different exchanges may charge varying fees for trades, withdrawals, or other activities. Keep track of these fees as they can impact your overall profits and losses.

Regularly Review Your Dashboard

Most crypto portfolio trackers provide a dashboard that gives you an overview of your portfolio and current holdings. Make it a habit to review your dashboard regularly to stay updated on the performance of your bitcoin investments. Customize your dashboard to include the widgets and information most relevant to you.

By following these tips and utilizing the right tools, you can effectively monitor your trades and transactions, enabling you to make informed decisions about your bitcoin investment.

Keep records of your trading history

Keeping records of your trading history is essential for understanding your investment performance and making informed decisions. Here are some detailed instructions on how to keep track of your Bitcoin investment:

Firstly, it is important to choose a reliable crypto portfolio tracker that suits your needs. These tools allow you to monitor the performance of your cryptocurrency investments in real time and provide valuable insights. Examples of popular crypto portfolio trackers include CoinStats, Delta Investment Tracker, and Blockpit. These platforms offer features such as enhanced security, portfolio analytics, and tax reporting. Some are free, while others offer premium features for a monthly fee.

Once you have chosen a platform, connect all your financial accounts, including crypto wallets and exchange accounts. This will enable you to track your entire portfolio in one place. Make sure to enable two-factor authentication and other security measures to protect your sensitive financial information.

Most crypto portfolio trackers allow for automatic imports of your trading history through API connections with exchanges. You can also manually enter your trades, purchases, and withdrawals to keep your records up to date. Ensure that you record all relevant details, including dates, amounts, and any additional data that may be useful for future reference.

By using a crypto portfolio tracker, you will be able to view important metrics such as diversification monitoring, profit/loss analysis, and tax reporting. Diversification monitoring shows the percentage of each coin in your portfolio, helping you balance your investments and reduce risk. Profit/loss analysis allows you to assess the performance of your portfolio and make informed decisions on buying, selling, or holding. Tax reporting simplifies the process of filing taxes by providing detailed reports of your trades, profits, and losses.

In addition to using a crypto portfolio tracker, it is essential to maintain accurate records of your trades. You can do this by keeping a spreadsheet or using dedicated investment tracking software. Record all your trades, including the date, time, quantity of Bitcoin bought or sold, and the price per coin. It is also helpful to include any relevant news or events that may have impacted the market on that day.

By following these steps, you will be able to keep detailed records of your Bitcoin investment journey and make more informed decisions. Remember to review your records regularly and consider seeking professional financial advice before making any significant investment decisions.

Choose the right exchanges and be secure

Choosing a Bitcoin exchange is a crucial step in your investment journey, and it requires careful consideration of various factors. Here are some guidelines to help you select the right exchanges and ensure your security:

Conduct Thorough Research

Before settling on a Bitcoin exchange, it is essential to conduct extensive research. Avoid relying solely on the recommendations of "gurus" who may be biased and receiving commissions for their endorsements. Instead, seek out independent reviews from websites like Trustpilot and Yelp, which offer unbiased opinions from actual users. Additionally, utilise social media platforms like Reddit and independent forums to gather insights and experiences from a diverse range of individuals.

Evaluate Security Measures

When selecting a Bitcoin exchange, prioritise platforms that implement robust security measures to protect your personal information and financial transactions. Look for exchanges that offer two-factor authentication (2FA), SMS or email alerts, and encrypted communication. Ensure that the platform follows standard user verification procedures and investigates any dubious rumours or security concerns.

Assess the Track Record

It is crucial to scrutinise the track record of a Bitcoin exchange before entrusting them with your investments. Look for success stories and testimonials, but also be cautious of any past security breaches or hacks. Understand how the company responded to such incidents and what measures they took to enhance security afterwards. A reputable exchange should be transparent about addressing security vulnerabilities and prioritising user protection.

Understand the Transaction Workflow

When assessing a Bitcoin exchange, pay close attention to the transaction workflow. Consider factors such as transaction speed, associated fees, deposit and withdrawal requirements, and any transaction limits. Be wary of platforms that impose excessive restrictions or fees, as these could impact your trading strategy and profitability.

Prioritise Privacy Protection

Authenticity and privacy protection are non-negotiable when dealing with your finances. Choose an exchange that values and safeguards your privacy. Ensure they have measures in place to prevent phishing attacks and protect your personal information. A legitimate website will only request personal details during the signup phase, and they will send email notifications for any transactions or withdrawals.

Consider Decentralised Exchanges (DEXs)

Decentralised exchanges, or DEXs, offer several advantages over centralised alternatives. DEXs provide increased privacy, direct transactions, lower fees, and access to restricted areas. They are independent of any bank or financial institution, giving traders more freedom and control. However, DEXs may also pose challenges for newcomers due to their decentralised nature, and dispute-resolution mechanisms may not always be as efficient.

Enable Additional Security Measures

Regardless of the exchange you choose, it is essential to enable all available security measures to protect your investments. Enable two-factor authentication, use secure networks, and avoid sharing your data with anyone. Additionally, clarify trade terms, document transaction details, and report any suspicious activity to safeguard yourself and the wider crypto community.

Remember, investing in Bitcoin and other cryptocurrencies carries inherent risks due to market volatility. Always conduct thorough research, understand the blockchain technology underpinning these currencies, and never invest more than you can afford to lose.

Stay aware of updates on exchange policy

Staying aware of updates on exchange policy is an important aspect of keeping track of your Bitcoin investment. Here are some key considerations:

• Choose a reputable exchange: Opt for well-established and regulated exchanges, such as Coinbase, Crypto.com, or Kraken. These platforms offer strong security measures and are legally compliant.
• Security and reimbursement: Assess the security measures implemented by the exchange. For instance, determine how much of their crypto is stored in "hot wallets" connected to the internet. Prefer exchanges that keep only a small portion of crypto in hot wallets, as it limits potential losses in case of a hack.
• Two-factor authentication (2FA): Enable 2FA on your exchange account for added security. This will require you to enter a code from a text message or mobile app each time you log in or make a withdrawal, protecting your account from unauthorised access.
• Withdrawal and storage options: Understand the withdrawal options and storage solutions offered by the exchange. Consider transferring your crypto from the exchange to a personal wallet, especially if you plan to hold it for the long term.
• Stay informed: Regularly check for updates and notifications from the exchange regarding policy changes, new features, or security enhancements. This will help you stay aware of any adjustments that may impact your investment strategy or the security of your Bitcoin.
• Diversify your holdings: Don't keep all your eggs in one basket. Diversify your Bitcoin holdings across multiple secure exchanges and wallets to reduce the risk of loss in case of a security breach or exchange failure.

Frequently asked questions