How To Manage Cryptocurrency Portfolio?

The topic of this article is How To Manage Cryptocurrency Portfolio?. We will also discuss: Best crypto portfolio management software. Then study notable Crypto Portfolio Management Mistakes, Beweilding a Crypto Portfolio, Cryptocurrency Portfolio Management. How To Manage Cryptocurrency Portfolio?

Many crypto investors believe they can do without crypto portfolio management.

For crypto investors to do well in crypto portfolio management, the need tools and mental models which will guide them. If you do not use these, you are likely going to lose a lot of money.

Constant loss of money in the crypto market can affect one generally.  That’s why it’s imperative to use proper crypto portfolio management.

For one to excel in crypto portfolio management, humility and smartness must be the standby qualities possessed.

The main priority of any investor should be long term investment. Although we may not care  about buying into alt coins.  Below are topics covered in the crypto portfolio management guide:

  • Rules to managing a crypto portfolio
  • Beginner crypto portfolio management mistakes
  • The best software and apps for tracking your portfolio
  • Professional crypto tracking

Points To Note About Cryptocurrency Portfolio Management

Crypto portfolio management is the skill of using the right tools and right mental models to improve your financial returns from crypto investing.

People tend not to see the importance of using the right tools and right models.

When investing, you don’t allow your emotions get the best of you. If it does, it will be difficult for you to achieve much in Crypto currency. Cryptocurrency portfolio management will help you keep your emotions in check, track your performance, and identify your strengths and weaknesses when investing.

Beweilding a Crypto Portfolio

Beweilding a Crypto Portfolio also means managing a crypto portfolio. There are a couple of basic rules to follow when beweilding a crypto portfolio.

First, you need to have a balanced portfolio. Everyone knows that Crypto currency is very volatile. Yet some investors tend to invest all the have in one coin or trade with too much leverage.

Second is spread of Investment In crypto currency, diversification is key. By diversification, I mean spreading your risk, to reduce the chance of losing it all and keep your emotions in check.

The main idea of this is to minimize your chance of total capital loss. You do this by investing the biggest part of your portfolio in large-cap coins like Bitcoin.  Although Bitcoin will make far smaller gains compared to some altcoins, it will also lose far less of its value when you enter a bear market.

Finally, you should track your investments. Especially if you spread your capital across multiple assets, exchanges, and wallets, it is very hard to keep track of their performance. Using crypto portfolio management software or apps will help you stay on top of your investments. You can adjust as needed.

Notable Crypto Portfolio Management Mistakes

Notable Crypto Portfolio Management Mistakes need to be reviewed. How To Manage Cryptocurrency Portfolio? Mistakes are expected when learning. Below are some of the notable crypto portfolio management mistakes.

Investing on a Whim Instead of Dollar-cost Averaging (DCA)

A lot of times, novice investors dive into buying a coin due to recommendation or a social media post. At the end of the day, the record loses due to their failure in doing analysis. The best way to invest for the long haul is to dollar-cost average: buy a little bit of a coin at fixed intervals (e.g., monthly) regardless of the price. That way you are less likely to get influenced by short-term fluctuations and be “shaken out” by selling if there is a price drop.

Failure to Track Your Investments

Unless you have only one coin in one place, you should be tracking your investments. For Defi investments you can use trackers like Zappier,  Debank, Zerion, Apeboard etc. You can use more to add investments in one wallet across different blockchains. There is also an abundance of crypto portfolio management software and crypto portfolio management apps that you can use to stay on top of your investments.

Manage Your Expectations and Have an Exit Strategy

This particular one is very important. One might avoid the first and second mistake, but you might still get tripped up by not thinking about when you want to take profit or cut your losses. For every investment or trade, you need to know:

  • Why you invested
  • When you plan to take profit and why
  • When you want to cut your losses and why
  • What new information could change your investment thesis

Best Crypto Portfolio Management Software

Its not really easy to find the best crypto portfolio management software, but it is important to know cryptocurrency Portfolio Management. This is because they all do the same job, and it’s hard to tell which one is the best. We do have a couple of recommendations to make your life easier, though. This helps to solve the puzzle of “How To Manage Cryptocurrency Portfolio?”

CoinMarketCap Portfolio Tracker

The easiest way is to use our in-house CoinMarketCap portfolio management tracker. It comes with a couple of features: real-time price data, keeps your data secure, and tracks your profits, losses, and portfolio valuation. Each coin comes with extra data. You can create custom watchlists, set price notifications, and compare prices. Also custom volumes and market capitalizations.

Coin Tracking

Coin Tracking is a project, that makes one stay ahead of several thousand different cryptocurrencies. You can directly sync with the blockchain and get interactive charts for your trades and different coins. The site also offers up to 25 customizable crypto reports, although you need a premium package for unlimited exchange connections.


Shrimpy is a popular tracking tool that allow users link their wallets and exchanges. It an interactive user interface. You can explore different trading strategies with the advanced portfolio back testing option and track your balance changes in your hardware and software wallets.

Top Rated Crypto Portfolio Management App

How To Manage Cryptocurrency Portfolio? It is notable that most portfolio trackers come as a web-based version or as an app. Therefore, the best crypto portfolio management software will also be the app.  These are other good options on the market:

  • CoinTracking
  • Shrimpy
  • Accointing
  • Kubera
  • CoinStats

Picking a Good Crypto Portfolio Manager

It is important to choose a good portfolio manager because it will really  help you in your crypto portfolio management. However, if you want to find a good crypto portfolio manager, you should look for:

  • Trading features:
    • Multi venue connectivity
    • Book aggregation across exchanges and dealers
    • Best execution routing
  • Real-time and historical reporting:
    • Real-time and historical market data
    • Performance and exposure analysis
    • Trade aggregation across multiple exchanges and counterparts
  • Multi-instrument coverage:
    • Spot markets
    • Futures and funding rates
    • Options
    • Loans

The Best Crypto Portfolio Manager

A good option incorporating all of these features would be Hedgeguard. However, this is an institutional-grade crypto portfolio manager. First, have the skill to use it. Unless you have been investing in crypto for a long time and have significant experience. You also need advanced financial instruments like futures, options and derivatives.

I hope this article has answered your question of How To Manage Cryptocurrency Portfolio? Beweilding a Crypto Portfolio.

See the List of things to learn.

  1. Blockchain Technology
  2. Defi
  3. NFTs
  4. DAOs
  5. Crypto
  6. Web 3.0
  7. Altcoin Tokenomics
  8. Metaverse
  9. Smart Contracts

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