Over the years the cryptocurrency market has been expanding and growing both in the valuation and in the number of different cryptocurrencies. Especially after the 2017 ICO boom, the number of coins increased by a significant amount as they came into the market by hundreds every day. Currently, there are over 7,000 cryptos in the market, but they are unique in their own way.
The most distinct way in which the coins can be different is in the technological sense. This leaves some of the previous tools and solutions behind as they can’t accommodate the needs of the new tech. The market is fragmented on purpose as players want to ensure their unique positioning, while technology is evolving to compete with the existing solutions.
Although this is good and indicates that the market is growing, it leaves the crypto data scattered. Whether you just hold your cryptos in your wallet, you have them staked in a smart-contract, lent for interest, or whether you performed a simple payment transaction, tracking your money is always a good idea. Considering the vast complexity of the issue, in regards to what’s been stated earlier, it can sometimes be a troublesome process or even an impossible one.
Problems With Tracking Crypto
Different wallets, different exchanges, purchase time, price changes are just some of the basic variables in tracking your crypto portfolio. Although, if you are a company that operates in crypto or a financial professional that runs a crypto fund, you can struggle with these alone.
Today there are cryptocurrency trackers that help you with that process. But just like every coin is built in its unique way, so is every coin tracker. Depending on the reason behind cryptocurrency purchases and transactions, you would want to have different features.
For example, a retail investor who bought to hold for the long run can be satisfied with a portfolio tracker that only lets you manually enter your positions and weights. But for a seasoned professional who plays the market every day, it would be a necessity to have the real-time price trackers and PnL calculators. On the other hand, if you are a fund manager, you would benefit from having an option to export your trading history for performance measurement, while a DeFi lender wouldn’t.
But there are some features that are uniquely important to all involved in cryptocurrency and in the upcoming paragraphs we are going to elaborate on the most important ones.
5 Core Features
- Privacy and security. No matter what you do and how active you are at trading cryptocurrencies, having your access maintained only for yourself is the most basic thing. There are tracking platforms with API access that enable you to perform trades, send and receive funds that interact with the underlying exchange, so making this inaccessible is the first step. Even if you aren’t to use that particular kind, having privacy and keeping the information of your crypto holdings private is something to be thought of.
- User friendly layout. The cryptocurrency market is already complicated enough as it is. The number of information and different options to look out for on a usual exchange can be between 70-120 per screen. People coming from the tech and financial background are accustomed to a more robust and practical look whilst the newcomers would appreciate a simpler layout. Having a tracker that can solve this problem as well and serve as a data curator can help you filter out a lot of noise.
- Compatibility. There isn’t much use of a tracker if the coin can’t be tracked. Recently with the rising popularity in DeFi this issue has been set forward as the problem got bigger with the niche market. Many trackers are now considering adding DeFi support because their product hasn’t had this functionality from the very start. Having it all in one place is the whole point of a comprehensive crypto portfolio tracker.
- Real-time data feed and automation. A portfolio is made for investment purposes. Having to know the current price and how it relates to your purchasing price (have you made a profit or a loss so far) is the most beneficial piece of the product. Why would you need to manually enter your purchase and sell price or insert the amount? The whole purpose of the crypto portfolio tracker is to do the heavy lifting for you and visually represent what you already have via an exchange integration.
- History. The vast majority of cryptocurrency exchanges only let you export your trading history for up to three months. If you are an investor or a trader who wants to keep track of your performance, that’s not satisfactory. Besides its basic function to track your equity curve and display your track record, its important for tax purposes as well. Regardless of your position – whether you are an individual investing your own money or a company that is accountable towards your clients, having a history to prove the investment path is necessary for staying compliant to financial authorities.
These are the core 5 features a cryptocurrency portfolio tracker must have in order to serve its user with true benefit. These aside, there are additional functionalities that one can find according to their needs and preferences. Crypkit primarily aims to assist financial professionals – fund managers, accountants, and companies dealing with cryptocurrencies who perform a large number of transactions and cover the whole spectrum of operations like mining, investing, trading, staking, and lending. Used exclusively for tracking purposes, you can’t directly manage your assets, thus it is suitable for access sharing. You can invite your clients to the platform where they can see how the portfolio is performing and add that extra layer of transparency into the stakeholder management. Also, you can bring in your accountant, team members, and auditors to collaborate on a variety of topics, including financial and tax statements.
There are other ways funds can benefit from using Crypkit, but so can retail traders and DeFi users alike without the crowded interface that usually goes with additional functionalities.
Intuitive layout with segments on the side ensures that you are displayed only the right information in front of you, minimizing noise and maximizing focus on what matters.
Whether you are a crypto investor, a fund admin, or an employee of a blockchain start-up, you can try out Crypkit for free for 30 days – Sign Up now!