This article is written by Pini Raviv, a software engineer and front-end team leader for an Israel-based startup. A Bitcoin aficionado spends his time researching altcoins, mining Ethrereum and blogging about blockchain.
Cryptocurrencies can be used either as a medium of payment or a store of value. In other words, the properties of digital currencies enable them to be considered as money used for settling transactions or they can be treated as commodities, i.e. tools for investment.
Investing in cryptocurrencies
Treating cryptocurrencies as a store of value comes with the responsibility of identifying flexible and performing investment solutions to generate returns. Considering the available number of options made possible by Bitcoin and the numerous cryptocurrencies currently in existence, it is often difficult for traders and speculators to pick out opportunities early enough while seeking profitable trades within the crypto market.
Cryptocurrency trader and creator of the oWo trading bot, Anari Sengbe compares the scenario to “trying to pick the right horse in a race of multiple horses”.
The recent market volatility which is triggered by events in China has raised a new level of awareness in the world of asset management.
It is very common to find crypto investors holding numerous tokens in their trading portfolio at the same time. Following up on the performance of these tokens in real time becomes a tedious and confusing venture most of the time. This leads to negative results such as missed opportunities, forgotten parameters, increased cost of investment management, mental stress and a lot more.
A platform to manage all your portfolios
CoinTracking is a tool that analyzes all your trades and generates useful information in real time such as the profit/loss of your trades, the value of coins, balances, realized and unrealized gains, reports for tax declaration, and much more.
The platform imports prices of thousands of coins from about 40 different exchanges to provide a robust analytical tool for any trader at a glance.
In the wider world, it is believed that information is power, but in the world of cryptocurrency trading where things can change rapidly, the right information at the right time is life.
Coindex is a mobile tool that enables traders track and manage their entire portfolio in one glance. The tool offers Candlestick charts and market data along with features such as market cap listing to simplify the market tracking processes for traders.
The app which is compatible with both iPhone and Android technology is powered by Cryptocompare, acquiring real-time price feed from multiple top exchanges as well.
Being able to track and manage all of one’s trades and investments through a central portfolio provides the opportunity to maximize available resources such as time, attention and cost of service. The system eliminates the need to jump from one platform to another while monitoring investments, thereby enabling optimum management of investment and resources.
How to keep up to pace with the markets
According to Sengbe, the popular easy way out is to adopt a long-term plan and expect cryptocoins to at least double in value over long periods of about 6 months. This philosophy is born out of the idea that if not from market participation, any average coin should at least double in value from the coin owners themselves needing to keep it active on the exchange.
Sengbe also emphasizes the need for keeping up to pace with happenings within the crypto space, noting such as an important tool to manage one’s portfolio effectively.
“The pace of crypto news and information requires that you have reliable sources to navigate what is profitable information and what is not at any given point in time.”
In a fast-moving environment like the cryptocurrency market, having to chase the market through several avenues can lead to frustration and significant loss of value.
The convenience of interpreting the market at a glance, accessing important information without much ado and managing multiple assets from one central point is making crypto portfolio management system a much desired development.
More volatility ahead
As the ecosystem gradually enters the phase of governments and regulatory institutions looking for appropriate ways to adopt cryptocurrencies and their underlying technology, a lot of crucial information will be expected to keep rolling out down the road. This will imply increased movement in price of crypto assets, necessitating the ability to keep up to pace with the fast moving market.
Adopting a system that eliminates unnecessary and costly distractions is apparently the most ideal approach to a successful adventure in the world of cryptocurrency investment and speculation.
Portfolio management platforms may indeed be the hitherto missing link to a prosperous crypto asset business for most investors.
Last modified: May 21, 2020 9:08 AM