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Crypto Portfolio Management: A Beginner’s Guide

17 mins
Updated by Ananda Banerjee
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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.

Keep an eye on all your investments with the most popular free trackers

Up to 4% cashback

Uphold

Trade between multiple asset classes from one account
Uphold
Explore Uphold On Uphold’s official website
Free plan yes
Price free
Supported assets 250+
All-in-one tracker

Delta app

Best for multi-asset tracking (Stocks, crypto, forex and etc)
Delta app
Explore Delta app On Delta’s official website
Free plan yes
Price $5/month
Supported assets 1,000+
1,000+ DeFi Protocols

CoinStats

Supports all major crypto platforms and DeFi protocols
CoinStats
Explore CoinStats on CoinStats’ official website
Free plan yes
Price $8 / month
Supported assets 20,000+

Methodology

What tools are used to manage a crypto portfolio? 

1. Uphold

Best for trading
Mobile app
iOS/Android
Free plan
Yes
Supported assets
250+

2. Delta app

Best for multi-asset portfolios
Mobile app
iOS/Android
Free plan
Yes
Supported assets
1,000+

3. CoinStats

Best for DeFi portfolios
Mobile app
iOS/Android
Free plan
Yes
Supported assets
20,000+

4. Bitsgap

Best for trading bots
Mobile app
iOS/Android
Free plan
Yes
Supported assets
1,000+

5. eToro

Best for copy trading
Mobile app
iOS/Android
Free plan
Yes
Supported assets
3,000+

If you are still unsure how these tools compare, here is a quick table to look at:

ToolSupported assetsBest forKey featuresProsCons
Uphold250+TradingTransparent fees, user-friendly platform, cashback debit cardComprehensive asset range, ideal for beginners, cashback debit cardLimited cryptos, no advanced features, high spread fees
Delta1,000+
Multi-asset Portfolios
Comprehensive portfolio overview, benchmark comparisons, real-time price updatesSupports a wide range of assets, investment analysis, user-friendly interfaceNo in-app trading, limited sync support, data delays, limited regional support
CoinStats20,000+DeFi PortfoliosReal-time price alerts, built-in trading, multi-network DeFi walletComprehensive portfolio management, strong security measures, user-friendly interfaceSome features only available for paid plans, past API sync issues, limited support
Bitsgap1,000+Trading BotsComprehensive trading tools, high-end technologySimplifies portfolio management, user-friendly interfaceSome features can be confusing, bots may not always execute as expected, non-flexible refund policy
eToro3,000+Simplifies portfolio management, a user-friendly interfaceSocial copy trading, eToro Money wallet appFlat 1% fee for trading cryptocurrencies, seamless mobile experienceSlightly higher spreads, limited charting tools on mobile, algorithmic trading not supported
Table 1

What is portfolio management in crypto?

RWA tokenisation cover

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.

Number of blockchain transactions: Blockchain.com
Number of blockchain transactions: Blockchain.com

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 adjusting the distribution of your assets based on market trends, emerging technologies, and global events. 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

South Korea CBDC crypt

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. 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. 

delat investment

After you get the Delta app, you can sign up for an account. 

delta

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. 

Crypto Portfolio Management

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. 

delta crypto  portfolio app

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. 

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Iulia Vasile
Iulia Vasile is a seasoned professional in the cryptocurrency and blockchain industry, working full-time in the field since 2017. With a background in computer engineering, she has the unique ability to write about complicated topics, including DeFi, NFTs, trading, and AI, in a way that is easy to understand. Iulia learned multiple programming languages while completing her Software Engineering degree in Bucharest at Politehnica University. Iulia brings her expertise and personal...
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