Your cryptocurrency needs to be taken care of just like any other valuable asset. Whether you have a few coins or a thousand, the following tips will help you keep up with it all.
So you used to be really into crypto, but now your head is spinning and you’re not sure what’s going on anymore. You’re juggling multiple exchanges and wallets, and it’s all just too much. You know that feeling when you first started using cryptocurrency? It was so cool — setting up your first crypto wallet and making that first trade into cryptocurrency. But as the months (or years) passed, like many of us, you signed up for more exchanges and wallets.-
It’s crucial to have a comprehensive understanding of your portfolio. Proper documentation, tracking, and monitoring can help you in a variety of ways. The initial effort is worth it.
Why is it important to have crypto tracker?
When you invest, you need to keep records. This is important for a number of reasons:
1. If you ever lose the records from the original source, you’ll still have a copy.
2. You need deductions and tax records for your investments. In many countries, these need to be declared with the relevant tax authorities.
3. It is a handy way to see your portfolio and makes it easier to manage your funds.
Up-to-date data is crucial for serious traders who need to watch their portfolio. If you’re looking for an easy way to keep yourself updated, try a portfolio tracker. They can help you track prices, trends, and more.
What information should I record?
Some people may want to keep a public ledger of their transactions. For those who hold Bitcoin, they can use a website such as https://www.blockchain.com/explorer. Ethereum holders can use https://etherscan.io.
Cryptopia is a popular crypto exchange. Recently, it was hacked. This means that some people who were storing coins on this exchange might not know how many coins they had there. If they had recorded their wallet address or used a third-party app to record their transactions, then they’ll know exactly how many and which coins they have.
Tax considerations are just as important as the purchase itself. Some people may never be required to pay cryptocurrency taxes, but many will. It will save you time and stress later on if you have records of your transactions now.
What’s the best way to record your crypto transactions?
What is the best way to keep track of your transactions? It depends on your circumstances. If you’ve only bought a few types of coins and are keeping them for a long-term, a simple document or spreadsheet will suffice. Document the date, amount, type of coin, and wallet address where it is held.
However, most crypto enthusiasts will have multiple transactions, possibly spread over multiple exchanges and wallets. Therefore a 3rd party solution is best to easily track your portfolio.
When you want to keep track of your cryptocoins, there are many options. Do your own research to find the coin tracker that works best for you.
CoinTracking is a free app that supports all major coins and exchanges. They offer an API for traders to input trades automatically, which is great for frequent traders looking for higher transaction limits. The app also offers a free tier, which includes 200 free trades.
Other popular coin tracking solutions include:
When it comes to portfolio tracking, there are some great options to choose from. Cointracking, CryptoCompare, Delta and Blockfolio usually show up in the top lists when comparing these types of services. If you need a service that can handle a variety of languages, Cryptonaut is a good option as most trackers only offer English.
It’s time to get your crypto affairs in order. There are many solutions out there, and more being added to the market regularly – but you can’t wait any longer. Plan ahead today to make sure you’ll be happy later.
