The biggest issue in the crypto portfolio tracking world today is that there are simply too many of these tools on the market vying for your attention while making it difficult to choose between them.
That is why, in this section, we will provide you with the key criteria to compare your options (which we will provide a list of later!) when looking for your cryptocurrency portfolio tracker.
1. Collaboration with a Diverse Set of Financial Institutions
Cryptocurrency portfolio trackers function by connecting with third-party aggregator APIs, which allow them to connect to various crypto data feeds and display the information you need to track your assets.
The issue is that most aggregators only operate in a few countries and support a limited number of crypto feeds. As a result, not every cryptocurrency portfolio tracker will work in every situation — so make sure to test the tools you’re interested in to ensure they work in your specific situation.
Because it integrates with a handful of aggregators that all serve different markets, Crypto Portfolio Trackers are uniquely equipped to track different crypto accounts as well as different bank and credit card accounts, investment accounts, tax on cryptocurrency in India and more.
2. A High Standard of Security
Cryptocurrency is a type of digital currency that is managed by a decentralized network known as “blockchain.” This network is not owned, regulated, or monitored by any authority or institution. This, of course, means that crypto ownership is difficult to trace and that crypto transactions, once initiated, are nearly impossible to reverse.
It’s not difficult to determine which crypto portfolio trackers prioritize security. Examine their websites to ensure that the data they manage is encrypted and that they use two-factor authentication whenever possible. Bonus points for trackers that don’t even access their users’ account credentials and instead rely on trusted aggregator services to handle that sensitive data.
3. Automation Improves Usability
One of the primary reasons people use crypto portfolio trackers is to create a centralized dashboard from which they can monitor all of their investments.
But what’s the point if setting up or even using that single dashboard takes as much time as logging in to each of your individual online accounts every few days to check on performance? After all, isn’t seeing how your portfolio is performing in a single glance one of the main purposes of a tracker?
No tracker worth your time should be difficult to use in this day and age. You should be able to add assets and track their progress with a few clicks or taps of a finger in the case of mobile apps. This ease of use is typically aided by automation. There is no need to manually re-update your assets or their values.
4. Portfolio Consolidation
As we discussed earlier, smart investors understand that diversification is critical to maintaining a healthy portfolio and increasing your net worth.
The disadvantage of diversifying into various alternative investments, such as cryptocurrency, is how difficult it can be to understand how they all interact to impact your crypto portfolio.
The solution is to look beyond portfolio trackers that claim to be “crypto only” and into more robust solutions that can unify your entire portfolio on the dashboard.
Furthermore, any portfolio tracker that claims to consolidate your net worth and other important investment data into a single dashboard should convert the value of each asset to your preferred currency — USD, INR, GBP, or SGD and more.
Binocs is a platform where your work of managing your own crypto wallet is eased and you can quite clearly manage your crypto taxes and crypto portfolio.