Use a Crypto Portfolio Tracker

One of the biggest advantages of the crypto economy is the decentralized nature of many coins. As you build your portfolio, you may have to deal with several different wallets, exchanges, and platforms, allowing you to take advantage of promotions. As a result, it can be cumbersome to manage your crypto portfolio across these wallets and trying to remember which cryptocurrency is where.

Crypto portfolio trackers are a way to solve this problem. A crypto portfolio tracker is a software that reads your wallets’ data and displays the aggregate information into a dashboard for you. Portfolio trackers make it easy for you to keep up with how much you have invested in each cryptocurrency. If one cryptocurrency is outperforming another, you’ll see it gaining a larger percentage of your overall portfolio.

Source: CoinMarketCap.com

Also, most portfolio trackers allow you to trade across many crypto exchanges, including Bybit, from their service. These trackers provide an additional convenience in that you do not have to log into each exchange account to make your trades. However, that convenience typically comes with a fee.

Another important benefit that crypto portfolio trackers provide is in tax planning and preparation. For example, in the United States, cryptocurrency holdings are treated as property. Therefore, a taxable event is triggered on the sale of crypto. A cost basis for the crypto holding is needed to accurately assess the tax implication. Even situations such as interest gained from staking alter the coin’s cost basis. As a result, an active crypto trader will generate a lot of transactions that need analyzing for tax purposes. A crypto portfolio tracker can help organize these transactions for record-keeping.