What you need to know about cryptocurrency portfolio management.
Whether you hate it or love it, cryptocurrency has made a huge splash in the way we see currency today. More establishments are accepting cryptocurrency as a form of payment. From real estate to a simple dinner out, the uses are growing. Further, fintech developers are creating more currencies every day, each promising to be the best. It is hard to keep track of not only the uses of established crypto, but also to stay on top of new and developing coins.
If you are someone who is rooting for the success of crypto, you may already have some digital assets of your own. As you collect more, it may become more and more difficult to keep track of not only how many you have, but their value, and the information from around the world involving your crypto coins.
In this article, we will examine the best crypto portfolio trackers Alpen Partners is on top of the latest crypto and blockchain developments. For more information about crypto or what is next in fintech, contact us below!
What is cryptocurrency?
Cryptocurrency is the digital money that uses cryptography for security and has spread across the world. Cryptography is writing and solving puzzles. With the cryptography step, it is difficult to counterfeit. The currency does not have a central authority and can be used for a variety of things, such as buying goods and investing. The history of cryptocurrency begins with Bitcoin in 2008, and as of 2015, there were 14.6 million bitcoins in circulation. Since its launch, cryptocurrency has found its way into many aspects of our everyday lives that we may not even be aware of. There are now several different kinds of cryptocurrency. Cryptocurrency has the ability to make transferring funds easier between two parties. The transactions don’t cost much and allow users to avoid high fees experienced when using most banks and wire transfers.
Crypto Portfolio Trackers
With this new kind of currency that is growing in popularity, many are realizing it is not as easy as just opening a bank account and holding the funds. Also, for those who have more than one kind of crypto in their wallet, it can be hard to manage. It can be hard to track how many of which coins one has or how much each digital asset is worth. As one diversifies their crypto portfolio and obtains more tokens, it can be increasingly hard to manage, especially for those who are using multiple exchanges at one time.
Pen and Paper
I am sure this looks like something archaic. Why would we track a digital asset on paper? For some, keeping track of their crypto manually is the easiest way to track things. By writing down your crypto information in a notebook or journal, you have a handy crypto portfolio where you can find all of your transaction information and organize it in the way of your choosing.
Here you can keep notes and a thorough crypto portfolio that cannot be accessed by others. The downside to this option is that the physical copy can be lost or stolen. Having a paper copy of your crypto portfolio should be paired with at least one digital portfolio tracker.
For those who are not interested in keeping a tangible crypto portfolio, the next well-known management technique would be using spreadsheets. Most are familiar with Microsoft Excel, Google Sheets, or another digital spreadsheet system. Familiarity means that crypto portfolio management can occur without a learning curve.
Similar to pen and paper, spreadsheets allow users to manually record their transactions and organize their crypto in a way they see fit.
The downside of manually tracking is that there is no way of seeing the current prices of each crypto.
For those looking for a less hands-on portfolio or a portfolio manager that comes with handy tools like price tracking, many tracking apps can be downloaded that allow users to track their crypto, their value, and transactions easily.
Alpen Partners Opinion
The shift we are seeing is that of a digital age. Tech-savvy individuals are seeking easy access, convenience, efficiency, and speed in every part of their lives, including their finances. Having the ability to make transactions from the convenience of a phone or other electronic platform is what is creating this strong push towards Fintech. Looking beyond blockchains, we are seeing technology have a hand in simple things such as payment and holding money, and more complex life aspects like investment advising. Some companies are even developing ways artificial intelligence can assist in hedge fund managing!Alpen Partners