What Are Cryptocurrency Trackers?
Note that all the cryptos in your wallet are susceptible to price fluctuations. This volatile nature has spurred new entrants to flock into the burgeoning crypto market, and it has equally deterred people who are skeptical of such unprecedented instability. In essence, it is vital to stay one step ahead of the ever-changing crypto landscape, which begs the question: How does one keep pace with a market notorious for exhibiting unrelenting price swings?
One of the viable tools that can help you stay ahead of the crypto market is the cryptocurrency tracker. Websites offering this service enable a platform where users can sync their wallets or exchanges and monitor the activities executed on them. With this, you can ascertain the effectiveness of your investment or trading strategies. In other words, cryptocurrency trackers are important systems suitable for traders interested in verifying the profits and losses generated through their trading endeavors. It is safe to say that cryptocurrency portfolio trackers are crucial to the activities of professional and less-experienced crypto traders.
What Are the Benefits of Using A Cryptocurrency Tracker?
It Is A Vital Tool for Tracking Crypto Portfolios
From its name, it is clear that the primary feature of a crypto tracker is its portfolio tracking system. With this feature, crypto practitioners can easily access and monitor all their holdings. This ease of access has made it a lot faster to track the prices of cryptocurrencies you have in your portfolio. As such, you can determine the real-time value of your crypto holdings at any given time.
It Helps to Determine the Efficacy of Investment Strategies
Every now and then, crypto investors or traders try to alter their trading styles and incorporate strategies that might improve their profitability. Once this is done, it is difficult to manually ascertain the efficiency of adopted strategies and compare them with previous trading styles. To verify the viability of newly adopted trading or investment strategies, traders can use cryptocurrency portfolio trackers to analyze their productivity and profitability. In other words, crypto trackers provide an avenue to analyze the profit and losses generated from trades executed on crypto exchanges.
It Is Useful When Preparing Crypto Tax
Cryptocurrency portfolio tracking websites’ users find it a lot easier to prepare crypto tax reports because it avails tools to collate one’s crypto activities and determine the amount to pay as tax. You can identify how transactions and trades pile up and affect the tax you will eventually pay at the end of the year. This function is particularly critical for crypto participants located in regions using the capital gains tax model. Since portfolio trackers showcase your profits and losses, you can, therefore, calculate tax, based on the gains generated via crypto transactions, and deduct capital losses. In some cases, the portfolio tracker provides a wide array of tools required to file your tax return and fill appropriate forms applicable to your country.
It Can Help Streamline Crypto Business and Execute Transactions
You can use a crypto tracking website as a point of access to monitor all of your exchanges, which is better than trying not to forget the passwords of two or more exchanges. Besides, some portfolio tracking websites come with special features that allow users to buy and sell crypto directly from the site.
How Do Crypto Portfolio Trackers Work?
From our definition, it is clear that portfolio trackers are third-party apps or platforms that request access to information and data relating to transactions executed on wallets, exchanges, and other crypto payment platforms. Hence, portfolio trackers must introduce a means of integrating real-time data from multiple sources and create a unified interface where users can explore processed data.
Crypto portfolio trackers implement APIs for the automation of data importation and provide analytic algorithms to process and interpret data sourced from other websites. The availability of an API integration system allows users to circumvent the often stressful and less-efficient CSV integration system, which is a manual data importation process. Note that the number of exchanges and wallets compatible with the portfolio tracker depends on the type of support system incorporated. Hence, a crypto portfolio tracker might have the resource required to import data from multiple platforms, while another can find it difficult to integrate with more than one exchange or wallet at a time.
The same applies to the volume of data a portfolio with tax-processing functionality can process. Simply put, the capacity of the portfolio’s algorithm determines the volume of data it can process at one go.
What Are the Downsides of Crypto Tracking Websites?
The crypto portfolio tracking niche is a new sector mostly consisting of platforms yet to stand the test of time. Hence, crypto practitioners ought to carry out extensive research to identify websites with quality tracking features and viable services. While noting this challenge, we have compiled some of the factors that could help you pick the cryptocurrency coin tracking or accounting websites that best suits you.
What Are the Factors to Consider When Choosing A Crypto Portfolio Site?
The Number of Cryptocurrencies and Tokens the Portfolio Tracker Supports
The first bit of research that you should carry out entails the analysis of the range of digital assets listed as supported coins. The more the array of digital assets supported, the better. Chances are you will expand the number of cryptocurrencies in your portfolio. When this happens, your chosen crypto portfolio tracker must have the resources required to offer accounting services to your newly adopted coins. Hence, it is advisable to opt for trackers providing services to a broad array of tokens and cryptocurrencies.
The List of Exchanges and Wallets That Are Compatible with Its Automated Data Integration System
As discussed earlier in this guide, crypto portfolio trackers rely on two major types of data integration systems. One offers automated data importation feature while the other involves a long and manual process. Note that you can only enable the API-based data integration system for wallets and exchanges compatible with the platform. On the other hand, users have to undertake the CSV integration process to import data from unsupported websites. In light of this, it is preferable to opt for portfolio trackers compatible with the exchanges and wallets you currently use. Needless to say, this is the only way you can ascertain that you will access real-time portfolio tracking features.
The Jurisdiction of The Tax and Accounting System
Remember that we mentioned that crypto portfolio trackers often double as tax or accounting systems, which allow users to calculate their tax returns based on the data imported from crypto exchanges. While this is a given, each country, however, has a unique outlook on crypto tax regulations. Likewise, each has adopted a specific tax framework governing the tax class and reporting format ideal for crypto income. As such, it is imperative to identify the tax framework active in your jurisdiction and verify that the crypto portfolio tracker under review supports it. When you ascertain that the crypto tax system caters to you your location, you can rest assured that the tax report generated at the end of the day conforms with regulations governing your region.
The Capacity of The Data Processing Software or Algorithm
This factor might seem inconsequential to crypto participants with small portfolios or who are not that active on crypto exchanges. On the contrary, professional traders and people who execute a high volume of transactions should do some research relating to the capacity of crypto portfolio trackers before registering for their services. The reason for this is that there are limits as to the volume of data and the number of exchanges/wallets the tracker can analyze concurrently. Hence, it is imperative to discuss your needs with a representative of the crypto portfolio tracker. You should inquire about the capacity of the platform’s processor to seamlessly import and process data from all of the platforms you intend to integrate with the tracker. Also, ensure that the platform is flexible enough to scale whenever your activities on your exchanges or wallets experience a surge.
The Fee Policy of The Crypto Portfolio Tracker
You might want to verify whether the portfolio tracker on your radar is free-to-use or has subscription plans. If the latter is the case, we suggest that you identify the fee policy incorporated on the website and determine the range of services accessible under each subscription package. Once you have access to this information, it becomes easier to assess the competitiveness of the prices allocated for each plan, especially when compared with other platforms rendering similar services.
The UX/UI Of the Platform
User experience and user interface are vital factors that could determine how enjoyable it is to utilize a crypto portfolio tracker. First, the platform must enable clear and clean layout, which goes a long way to reinforce the service provider’s commitment to ensuring that the data and information contained in the website are not muddled up. Incorporating this type of design also makes navigation easier. Another feature to look out for under this review section is the “dark mode” interface providing low-level lighting for people who are sensitive to conventional designs. Moreover, you should ensure that the services provider offers a mobile version of its tracker to make accessibility even more seamless.
The Security of The Platform
The fact that the tracker will request for access to your exchanges and wallets alone should inform you of the importance of adopting crypto tracker websites with bank-grade security features. Here, it is advisable to go the extra mile to research the viability of the measures implemented on the websites and their conformity with security standards. Hence, verify that the platform has multi-factor authentication, which will stifle unauthorized access to your account through the activation of a secondary layer of protection. Similarly, take the time to ascertain the type of encryption adopted. Preferably, go for crypto portfolio trackers with multiple layers of encryption.
The Customer Support Culture of The Platform
After examining the security features of the platform under review, you should assess its customer support system. It is advisable to search for lapses that could hurt the speed at which the service provider responds to complaints or inquiries. As such, you should check for the availability of 24 hours customer service. More so, you should analyze the communication channels adopted as feedback mechanisms and how easy it is for you to incorporate such feedback channels. Once you have explored the validity of the customer support system, it is easier to score the team’s propensity to engage with its community.
How Did Cryptolinks Compile Its List of The Best Crypto Tracking Websites?
As it is with our culture, we at Cryptolinks have taken the time to highlight the best crypto tracking websites available in today’s market. We believe that our esteemed readers will find the resources made available in this review section helpful in their search for the best tracking platforms for cryptocurrency. Note that we incorporated all of the factors listed in this guide and adopted an organic approach to researching the viability of the websites listed below.
First, we explored the versatility of the platforms in terms of the number of cryptocurrencies and exchanges supported. Then, we ascertained the processing capacity of each platform’s processor, as it determined their ability to scale effectively. We shed light on the fee policies of the platforms enabling subscription plans and picked those with competitive prices. Next, we examined the user experience and user interface of these websites and handpicked the ones with clean and clear layouts.
Security also featured on our review methodology, as we ascertained that each website implemented quality protective and encryption protocols. Lastly, we reviewed the customer support system of the websites and their propensity to provide viable means of logging complaints.
At the end of the day, we found 8 websites worth mentioning as top-performing platforms in the coin tracking niche. We suggest that you read our extensive review of each platform listed below before choosing one.