A cryptocurrency portfolio is a means to manage your inventory of online currency investments. It can be hosted on a cryptocurrency management software that helps you track each coin’s performance and provides you with analytical tools.
Many portfolio management apps provide live feeds and pricing updates from cryptocurrency exchanges. They may even alert you to significant market activities.
Think of a cryptocurrency portfolio as a business’s profit and loss statement. Cryptocurrency investors can use their portfolios to take stock of their assets, ensuring they grow over time. As such, a cryptocurrency portfolio enables investors to keep an eye out on their inventory, so to speak, so nothing gets wasted. If an investment is causing a significant loss, the constant monitoring would warn the investor about it. If, on the other hand, a coin is making tons of money, the investor can invest more in it.
Read More about a “Cryptocurrency Portfolio”
While Bitcoin remains the most popular digital currency, it should not be your sole crypto investment. The goal should be to build a versatile cryptocurrency portfolio. In fact, several investors spread their capital around different cryptocurrencies to reduce risks. But with almost 3,000 cryptocurrencies, how do you choose which ones to invest in?
Crypto experts suggest that you only invest in digital currencies that you understand and have done extensive research on. That advice makes sense. After all, that’s also what you do with mainstream investments, such as stocks and bonds. As Benjamin Franklin once said, “An investment in knowledge pays the best interest.” Nothing beats educating yourself before diving into any investment.
How Many Cryptocurrencies Should Be in Your Portfolio?
There is no consensus on the number of assets or cryptocurrencies that should be in an investor’s portfolio. But a study involving more than 100,000 backtests suggests that investors can reap maximum gains with around 20 assets. Backtesting is the process of applying historical data to analyze how well an investment strategy would perform.
With 20 assets in an investor’s cryptocurrency portfolio, there is a need for an application or software that helps investors track these investments.
What Is a Cryptocurrency Portfolio Tracker?
Cryptocurrency portfolio trackers enable investors to track their assets efficiently. They no longer need to log in to different accounts. Instead, they can manage their crypto assets in one place. With these trackers, investors can see their profits and losses from all their cryptocurrency investments. They can also see market prices in real-time and set up essential notifications.
Top 5 Cryptocurrency Portfolio Trackers
We rounded up five cryptocurrency portfolio trackers based on their number of users and star ratings on Google Play.
- Blockfolio: More than 6 million users with a 5.0-star rating.
- Coin Stats: More than 1 million users with a 4.8-star rating.
- CoinGecko: More than 1 million users with a 4.7-star rating.
- Delta: More than 1 million users with a 4.3-star rating.
- BitUniverse:More than 600,000 users with a 4.5-star rating.
There are dozens more of this app kind, but these five cryptocurrency portfolio trackers have the most number of downloads. While each of them has unique features, they all give users market price updates. They also provide users with a glimpse of how their investments are doing, saving time and effort.
Cryptocurrency investors may have anywhere from three to more than 20 crypto assets in their portfolios. Tracking each of them requires a lot of effort and may even be confusing at times. As such, cryptocurrency portfolio trackers are handy tools that allow investors to manage their investments from one place.