The success of your crypto investments doesn’t just rely on picking the right coins; it also involves the intricate art of crypto portfolio management. Drawing from financial theories that date back to the 1950s and the advent of digital asset strategies, managing your portfolio is essential for balancing risks and maximizing returns. This article explores the importance of managing your crypto assets, covers portfolio management basics, and provides tips for optimizing investments.
Methodology
Our tests for selecting the best platforms for managing your crypto portfolio were conducted over seven months. During this period, we assessed a variety of exchanges; however, only the best options were selected based on various criteria. Here’s a breakdown of why each one was chosen:
Uphold
- Trade across multiple asset classes
- Instant and fee-free conversions between different assets within the platform
- Multi-asset Uphold Debit Card allows users to spend cryptocurrencies, metals, and fiat directly from their balance
- Integration with Apple Pay, Google Pay, and Samsung Pay for seamless transactions
- End-to-end encryption, two-factor authentication, and SOC 2 Type II compliance
Delta app
- Detailed portfolio analytics, including profit/loss statements, historical performance, and advanced metrics
- Real-time price alerts for customized notifications on price movements, portfolio value changes, and significant market events
- Syncs across multiple devices, ensuring access to updated portfolio data anytime
- Extensive exchange and wallet integrations, supporting 300+ exchanges
- Customizable watchlists and coin details, including whitepapers, social media links, and relevant news
- Dark and light mode options for better user experience
CoinStats
- Real-time price updates and historical market data for in-depth market analysis
- Aggregated news from top crypto sources and social media for comprehensive market insights
- Customizable alerts for specific price points, percentage changes, and market cap shifts
- API integrations for automatic transaction syncing with leading exchanges and wallets, including Binance, Coinbase, and Ledger
Bitsgap
- Automated trading bots with customizable strategies for market, limit, and stop-limit orders
- Advanced charting tools with technical indicators, supporting informed trading decisions
- Demo mode allows users to test trading strategies without risking real funds
- Secure platform with API key encryption, ensuring the safety of user data and funds
eToro
- Social trading features, including CopyTrader™, allow users to replicate the trades of top-performing investors
- Commission-free trading for stocks and ETFs, with competitive spreads on other assets
- Educational resources, including eToro Academy, webinars, and market guides to enhance trading skills
- Integrated news feed, market analysis tools, and professional research reports for informed trading decisions
- Regulated by top-tier authorities, including the FCA, ASIC, and CySEC, ensuring a high level of security and compliance
To learn more about BeInCrypto’s verification methodology, click here.
- What tools are used to manage a crypto portfolio?
- 1. Uphold
- 2. Bitsgap
- 3. eToro
- 4. CoinStats
- 5. Delta app
- What is portfolio management in crypto?
- Why manage a crypto portfolio?
- How to choose a good crypto portfolio tracker
- Crypto portfolio management mistakes to avoid
- What is the best cryptocurrency portfolio tracker?
- How do I track my crypto portfolio?
- Crypto portfolio management apps are essential tools
- Frequently asked questions
What tools are used to manage a crypto portfolio?
1. Uphold
Uphold offers a comprehensive range of financial products and services that allow you to buy, sell, and trade crypto and other assets like precious metals. Its transparent fee structure eliminates surprise costs, and its user-friendly interface suits those new to crypto trading. Uphold facilitates safe, easy, and intuitive crypto portfolio management. However, remember that it may offer fewer cryptocurrencies or advanced trading features than other platforms.
- Comprehensive asset range
- Transparent fees
- User-friendly platform ideal for beginners
- Offers a cashback debit card
- Limited cryptos
- No advanced features
- High spread fees
2. Bitsgap
Bitsgap is a versatile and intuitive crypto portfolio tracker. It supports over 25 leading exchanges, including giants like Binance and Kraken, offering comprehensive market coverage.
Bitsgap’s trading bots offer automated strategies to optimize your crypto trading. Its Grid Trading Bots excel in markets with sideways momentum, allowing you to profit from small price fluctuations. The app also offers advanced risk management tools, making your trading strategies more resilient. It also operates 24/7, so you can earn even offline.
- Comprehensive trading tools including signals, arbitrage, and bots
- Simplifies portfolio management across multiple exchanges
- User-friendly interface integrates with popular crypto exchanges
- High-end technology ensures secure growth of crypto investments
- Some features can be confusing
- Bots may not always execute as expected
- Non-flexible refund policy
3. eToro
Don’t invest unless you’re prepared to lose all the money you invest.
This is a high-risk investment and you should not expect to be protected if something goes wrong.
eToro shines as a social copy trading platform, allowing users to learn from and mimic the strategies of successful traders. The platform offers a flat 1% fee for trading physical cryptocurrencies, making it cost-effective for trading many crypto assets. The eToro Money wallet app makes managing and transferring your cryptocurrencies easy.
The mobile app offers a seamless experience across devices, and VIP perks such as access to Trading Central and discounted fees can significantly enhance your trading experience. Overall, eToro’s combination of social trading, cost-efficiency, and strong mobile experience makes it a solid choice for managing your crypto portfolio.
- Social copy trading
- Flat 1% fee for trading cryptocurrencies
- eToro Money wallet app for easy crypto management and transfers
- Seamless mobile experience across devices
- Slightly higher spreads on EUR/USD compared to industry average
- Limited charting tools on the mobile app
- Algorithmic trading not supported
4. CoinStats
CoinStats is another great crypto portfolio management app. It syncs with multiple exchanges and wallets, giving you a centralized view of your portfolio’s balance, profit/loss, allocation, and transaction history.
Users can track prices and charts for over 20,000 supported coins, plus set custom alerts for price movements and news events. The app’s built-in swap feature lets you conveniently trade crypto assets across various platforms, including Binance and Coinbase, without leaving the app.
With CoinStats Earn, you can capitalize on high DeFi interest rates of up to 20% APY, offering safety and low fees. The app is also a multi-network DeFi wallet, where you can store and manage all your crypto holdings in one wallet that supports multiple blockchain networks. It even allows you to swap assets and adjust network fees within the app.
- Comprehensive portfolio management
- Real-time price alerts
- Built-in trading
- Multi-network DeFi wallet
- Strong security measures
- User-friendly interface
- Some features only available for paid plans
- Past API sync issues
- Limited Support for new exchanges and wallets
5. Delta app
Use the Delta Investment Tracker app to track your investments all in one place effortlessly. With support for over 10,000 different assets like stocks, crypto, and mutual funds, Delta provides a comprehensive view of your financial sector. Connect accounts from over 300 crypto exchanges, wallets, and brokers, or add holdings manually for real-time updates.
The app offers personalized notifications and watchlists, detailed insights into your portfolio’s performance, risk levels, and trading fees, allowing you to make informed investment decisions. Compare your portfolio’s growth against benchmarks and fine-tune your investment strategy using real-time data and analytics. Delta even keeps you updated with live asset prices and their driving factors.
- Supports a wide range of assets (over 10,000 assets)
- Comprehensive portfolio overview
- Benchmark comparisons against various market indices and other portfolios
- Investment analysis
- Real-time price updates
- User-friendly interface
- No in-app trading
- Limited sync support and potential issues
- Data delays
- Limited regional support
What is portfolio management in crypto?
Portfolio management in crypto involves strategically selecting and allocating various digital assets to optimize returns and minimize risks. It often includes tracking the performance of your investments in real-time, diversifying across different types of cryptos, and making adjustments based on market conditions.
Effective crypto portfolio management also helps you make informed decisions. By using various tech tools for tracking and analysis, it’s easier to keep emotions in check and make decisions based on data, not FOMO or fear.
With an exponential increase in the number of blockchain transactions and the growth of web3 in general, crypto investors might find it more difficult than ever to keep track of their investments. Having a crypto tracker where users can connect their different wallets can offer a more insightful perspective on a portfolio’s performance and value.
Why manage a crypto portfolio?
Essentially, managing a crypto portfolio with a dedicated tool allows traders to tailor their goals, implement strategies, and be more aware of their assets.
Beyond simply buying and selling assets, managing a crypto portfolio involves meticulous planning, such as setting investment goals, defining risk tolerance, and allocating assets based on diversification strategies. Such strategies may include investing in different types of tokens or asset classes within the crypto ecosystem, employing crypto staking or derivatives for hedging, and even spreading holdings across multiple crypto wallets for additional security against hacks.
Measuring and monitoring portfolio performance is another key aspect, given the fast-paced and highly volatile nature of the crypto markets. Portfolio management software, ranging from free to institutional-grade tools, enables real-time tracking and provides analytical capabilities for performance evaluation. Regularly reviewing this performance data ensures that the portfolio stays aligned with its investment goals and adapts to market changes.
Finally, rebalancing a portfolio is essential to executing a disciplined strategy of buying low and selling high. This action keeps a portfolio aligned with its initial objectives and market performance, making it resilient to market volatility.
How to choose a good crypto portfolio tracker
If you’re looking to improve your management of crypto assets, consider using a portfolio manager. Many crypto portfolio trackers are on the market in 2024. But unless you’re a professional with a large portfolio, stick to something straightforward.
For a top-notch crypto portfolio manager, look for trading features, real-time data, and types of assets offered.
Trading features
- Connects to multiple trading platforms
- Compiles order books from various exchanges and dealers
- Routes your trades to get you the best deals
Real-time and past data
- Offers real-time and past market information
- Provides insights into your portfolio’s performance and risks
- Consolidates trades from various platforms for easier analysis
Types of assets covered
- Includes spot markets
- Covers futures and related costs
- Supports options and loans
Strategic asset allocation: Balancing risk and reward
Strategic asset allocation is crucial for achieving a balance between risk and reward in your cryptocurrency investments. This involves regularly reassessing and rebalancing your portfolio based on market trends, emerging technologies, and global events.
Portfolio diversification is also an important part of balancing risks and rewards. By diversifying across major cryptocurrencies like Bitcoin and Ethereum, as well as promising altcoins, you can manage risk and optimize returns.
How to manage a crypto portfolio
A few simple guidelines can make a big difference when managing your crypto assets. First, aim for a well-rounded portfolio. The allure of crypto can make it tempting to put all your money in one place or trade with excessive leverage. However, having a diverse portfolio is the first step to managing your crypto. Portfolio diversification helps you spread the risk, making you less prone to emotional, rash decisions.
“Firstly, you need to build a portfolio, which is a rare thing for most people to do. They instead prefer to gamble one token at a time. Secondly, study the market in depth.”
Clem Chambers, Founder of Umbria Network: BeInCrypto interview
Secondly, diversification in crypto can be challenging because many assets tend to move in sync. A smart move is to invest a significant chunk of your portfolio in established coins like Bitcoin. While you may not see skyrocketing gains, you’re less likely to face steep losses, especially in a bear market.
Lastly, keep tabs on your investments. If your capital is spread across various assets and platforms, it can be tricky to monitor performance. Utilizing crypto portfolio management tools can help you keep track and adjust as needed. Ultimately, conducting your due diligence and in-depth market research is essential.
Using a portfolio tracker
Let’s take a look at how to use a crypto portfolio management app. For this example, we’ll use the Delta Investment Tracker app, but most crypto tracker apps will present similar functionalities.
However, before you start using trackers, here is what you must know:
Regularly rebalancing your portfolio is essential to maintain alignment with your crypto investment strategy. This involves periodically reviewing and adjusting your asset allocation to ensure it meets your long-term investment objectives and risk tolerance.
Rebalancing helps in capturing gains from well-performing assets and reinvesting in underperforming ones, thereby optimizing portfolio performance.
Now it is time to discuss the steps:
Step 1. Sign up for an account
Before you can start using a portfolio management app, you’ll need to sign up.
With Delta, the app is exclusively designed for mobile use. So, you can get an account only by installing the app on your device.
After you get the Delta app, you can sign up for an account.
Note that the Delta mobile app is powered by eToro. If you already have an eToro account, you can choose to sign up using the same account. In this case, your public profile and personal information shared on eToro will also be shared with Delta.
Step 2. Connect to your wallets and crypto exchange accounts
After creating an account, you can connect your portfolio to the chosen tracker app. This is the step where you connect your wallet to see your crypto investments or any other assets in real-time using only one app.
In the case of Delta, if you signed up with an eToro account, you can choose to import your eToro holdings. On the Delta mobile app, you can choose your import options as follows:
- Import all transactions
- Import all transactions starting from a set date
- Import new transactions only
- Important balances only
If you don’t have an eToro account, you can choose to connect to other crypto wallets, exchange accounts, and broker accounts you have on different platforms.
Delta app supports multiple crypto wallets, but note that the free version only allows you to create two connections. For unlimited connections, you’ll need a Delta PRO account (starts at $5 per month but depends on your location).
For each selected connection, the app will give me detailed instructions on how to create the connection.
Step 3. Manage your assets from one single portfolio tracker
You can create different portfolios from the app (in the case of the Delta app) and all your assets in one place at a glance.
A crypto portfolio management app will give you precise information about the digital assets that are spread across multiple exchanges and crypto wallets. From here, you can easily find new crypto investment strategies in real-time, buy more assets using your credit card, or even use this information to centralize your crypto taxes.
Depending on your chosen crypto tracker app, you can use it to buy and sell assets, keep up to date with market insights, and have all your wallets and exchange accounts in one single place.
Risk Management Strategies for a secure portfolio
Mitigating risk is necessary for successful cryptocurrency portfolio management. Effective risk management involves setting clear investment goals, diversifying across different types of assets, and utilizing tools such as stop-loss orders to protect your investments. This ensures your portfolio remains resilient in the face of market volatility.
Crypto portfolio management mistakes to avoid
Managing your crypto portfolio can be a rewarding yet complex endeavor, and even seasoned investors sometimes make mistakes. Here’s how you can steer clear of some common pitfalls in crypto portfolio management:
Avoid impulsive investing
Many newcomers invest based on a hot tip or a tweet, only to regret it later when things go south. Instead of making hasty decisions, use the dollar-cost averaging (DCA) strategy. This involves buying a set amount of a coin at regular intervals, such as once a month, regardless of its current price. This approach helps you resist the urge to sell during short-term market downturns and offers a more stable investment strategy.
During a bullrun, all you need to become a millionaire is $1000 invested in 40 different coins – WRONG.
One lesson many in crypto learn the hard way is proper PORTFOLIO MANAGEMENT
Dami-DeFi, Crypto Analyst: X
Keep track of your assets
If you’re spreading your investments across different coins and even blockchains, it’s crucial to keep a tab on them. Various crypto portfolio management apps and software, as well as DeFi trackers like Zappier, Debank, Zerion, and Apeboard, can help you monitor all your holdings in one place.
Why is portfolio management hard? As explained by Messari:
Plan your exit
Even if you’ve got your investment strategy down and are tracking your portfolio, failing to manage your expectations can still get you into trouble. Before investing, think about your exit strategy. Know why you’re investing in a particular asset, when you plan to sell it, and under what conditions you’d change your mind. Having a clear game plan helps you avoid emotional decisions on volatile trading days.
Active monitoring and analysis of your portfolio are integral to managing your cryptocurrency investment. Utilizing advanced analytics tools and market intelligence platforms can provide valuable insights into portfolio performance. Regular assessment helps in making informed decisions based on market trends, regulatory developments, and technological advancements.
What is the best cryptocurrency portfolio tracker?
The best cryptocurrency portfolio tracker depends on your needs. Some investors prioritize ease of use and look for a tracker with a simple interface. Others need advanced features like tax reporting and want a platform that integrates these capabilities. If you’re into DeFi, look for a tracker that supports decentralized assets and protocols.
Those with diverse holdings across multiple exchanges will want a tracker that can aggregate this data. Real-time updates can be crucial for those who trade frequently. Investors keen on privacy may seek a tracker that doesn’t require personal information.
An exit strategy feature may be valuable for those with clear profit-taking plans. Ultimately, the best tracker matches your investment approach and offers the features you consider essential.
How do I track my crypto portfolio?
To track your crypto portfolio, you’ll want to use a portfolio management software or app. Look for one that suits your needs, whether that’s a simple interface or advanced features like tax reporting. If you have diverse assets across multiple exchanges and blockchains, choose a tracker that aggregates this data for you. Real-time updates are key if you’re an active trader.
Crypto portfolio management apps are essential tools
Effective crypto portfolio management is essential for both new and seasoned investors. The right portfolio tracker helps you keep an eye on your profits and losses and offers valuable market insight. With features like real-time updates and the ability to connect your wallet directly, these apps are indispensable for tracking your crypto portfolio. Whether you’re dealing with multiple exchanges, grappling with crypto taxes, or looking to streamline your buying and selling activities, there’s likely a mobile app that fits your needs.
Frequently asked questions
To manage your crypto portfolio, first, diversify your investments across various coins and assets to reduce risk. Use a crypto portfolio tracker app to monitor your investments in real time, covering profits, losses, and market trends. Finally, have a clear exit strategy for when you plan to take profits or cut losses, and adjust your portfolio accordingly.
In a good crypto portfolio tracker, look for trading features, real-time data, and the types of assets covered. Ensure it connects to multiple trading platforms, compiles order books, and routes trades for the best deals. Additionally, it should offer real-time and past market information, insights into portfolio performance and risks, and support for spot markets, futures, options, and loans.
Yes, there are crypto portfolio managers available in the form of software and mobile apps. These tools help you track your crypto investments, monitor real-time market data, and analyze your portfolio’s performance. They often connect with multiple crypto exchanges, making it easier to manage all your digital assets in one place.
Yes, the Delta app is a trustworthy platform for managing your crypto portfolio. It provides a comprehensive suite of features, including real-time tracking, detailed analytics, and compatibility with multiple exchanges and wallets.
A safe crypto portfolio is one that is diversified across different types of digital assets, including large-cap coins like Bitcoin for stability. It also employs risk management strategies such as dollar-cost averaging to minimize the impact of market volatility. Using a reputable portfolio tracker can help you monitor performance and make data-driven decisions to maintain a balanced portfolio.
To organize your crypto, first consolidate your digital assets into a few secure wallets or exchanges that you trust. Use a crypto portfolio tracker to monitor the performance and value of your assets in real time. You’ll also need to create a regular schedule to review and rebalance your portfolio based on your investment goals and market conditions.
Managing your crypto portfolio effectively maximizes your returns by optimizing investment strategies and minimizing risks. It ensures you stay informed about market trends and make timely decisions. Always conduct thorough due diligence to make informed choices and protect your assets.
Rebalancing your crypto portfolio involves adjusting your asset allocation to maintain your desired level of risk and return. It’s recommended to rebalance your portfolio at least once every quarter. However, the frequency can vary based on market conditions and your investment strategy. Regular rebalancing is crucial because it helps you take advantage of market volatility, lock in profits from overperforming assets, and reinvest in underperforming ones. This process ensures that your portfolio stays on track with your long-term investment goals and risk tolerance, enhancing portfolio performance and managing risk effectively.
Managing risk in a crypto portfolio involves several strategies. First, diversify your investments across different cryptocurrencies to spread out potential risks. Second, allocate assets based on your risk tolerance, ensuring a balance between high-risk and stable investments. Third, use stop-loss orders to automatically sell assets if their prices drop below a certain threshold, limiting potential losses. Additionally, keeping a portion of your portfolio in stablecoins can provide a safety net against market volatility. Regular monitoring and adjusting your investments based on market trends and performance data also play a vital role in effective risk management.
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