Since cryptocurrencies became a viable investment vehicle for investors, everyone is searching for tools that can help them make informed investment decisions. This is where cryptocurrency portfolio trackers come into play. They are digital platforms such as apps and websites that enable investors to keep track of the ever-volatile cryptocurrency market.
Cryptocurrency portfolio trackers connect with crypto wallets which enable investors to control their digital currencies. Some of the best cryptocurrency portfolio trackers can also integrate with actual crypto exchange accounts. Selecting the wrong crypto portfolio can also do more harm than good.
- Integrating with financial institutions
Most cryptocurrency portfolio trackers work by integrating third-party aggregator APIs, enabling them to tie into different crypto data feeds to display the info the user needs. However, not all of them work in all countries, even if they are advertised as such. A trustworthy crypto portfolio tracker should work in every situation which requires proper integration with major financial institutions of the world.
- Past record
This is one of the best ways to ensure that the tracker is trustworthy as it couldn’t operate in the market with lacklustre services.
- Security Protocols
Since cryptocurrency is powered by blockchain technology, it is not owned, regulated, or tracked by any specific entity or institution. This also means that cryptocurrency ownership is virtually undetectable and the transactions are nearly impossible to reverse. This requires the ultimate level of security from crypto portfolio trackers.
To ensure that they provide the best security possible, traders should always check out the official websites to ensure that it encrypts the data they manage. Additional security protocols include two-factor authentication. What makes a tracker truly trustworthy is if it doesn’t access its user’s account credentials, instead relying on trusted aggregator services to handle it instead.
- Automation and simplicity
Many cryptocurrency portfolio trackers advertise themselves as simple but do not provide simple functionality. They fail to provide a singular dashboard from which investors can keep an eye on all of their holdings using a few simple clicks. Trustworthy crypto portfolio trackers provide ease of use via automation. Automation should be applied at every stage from the time you input your crypto accounts.
In the modern age, no portfolio tracker should waste an investor’s time when using it. It should be seamless, allowing investors to see their assets and their progress anytime or anywhere. Some of the best crypto portfolio trackers are powered partially by automation. For instance, they should not require manual re-updating of assets and their values. Some of the most popular trackers have a degree of automation. However, a lot of them do not function properly when serving international cryptocurrency traders. In case a portfolio contains investments in several currencies, the experience should be seamless.
- Portfolio unification
Investors know that diversification is key to building a valuable portfolio. However, a lot of diversification can also confuse investors if they do not have the right tools at their disposal. Fraudulent trackers do not provide updates on a timely basis which can lead to wrong decisions, ultimately costing a lot of funds. This is why the portfolio tracker chosen should be robust and should cover asset classes beyond cryptocurrencies.
- Erroneous fees and charges
Lastly, the cryptocurrency tracker chosen should provide a transparent view of all the charges associated with the service. One should steer clear of trackers that are not able t provide a clear fee structure or subscription model.
Cryptocurrency portfolio trackers are available in the market from various brands. But not all of them are honest in what they advertise. This is why it’s necessary for investors to conduct due diligence before they choose a particular tracker.