Organizing the Crypto Portfolio
For cryptocurrency users, monitoring digital coin investments comes as a priority. Investing in these currencies will require you to identify the most reliable exchanges and crypto wallets. Tracking your crypto portfolio gives you an idea of the high percentage of assets as well as your progress compared to initial investments. Monitoring also helps an investor to make well-informed decisions over time.
Portfolio tracking also enables you to identify useful tools and valuable data that can help enhance your investment strategies. Investors also get the opportunity to review the following essential elements:
- Returns on Investment (ROI)
- Average profits over time
- Profits versus Losses
- Portfolio history and development
- Price volatility
- Market Trends
- New technologies
Some of the necessary tools investors use include Google and MS Excel spreadsheets with fields, or cells users can quickly update. Or, look for cost-effective web and mobile applications from online shops. You can fill in and delete details manually in each tab, row or column. Valuable information consists of prices, progress (daily, weekly, or monthly), money earned, new investments, and closed trades. However, you also have the choice of adopting more sophisticated methods like the innovative CoinTracking.
Dependable Portfolio Manager
CoinTracking stands for a reliable portfolio manager to follow trades of cryptocurrencies. This tool ensures systematic analysis of trades, volumes, prices, profit versus loss, and coin value. In addition to the essential components, CoinTracking provides a sophisticated platform for yearly tax returns, Report of Foreign Bank and Financial Accounts (FBAR), Internal Revenue Service (IRS) Form 8949 for reporting of capital gains and losses from investment ventures, and the German Income Tax Act.
Investors can enter trades in various ways like manually, importing from digital exchanges (e.g. BitMEX, Kucoin and Binance) automatically through Application Programming Interfaces (APIs). The user will decide on the data that the exchange needs to monitor. You can follow the simple process of using CoinTracking. Log in at CoinTracking. Enter your crypto coins so the tool can watch them. Click Enter Coins in the navigation bar which will bring you to the main tracking page. Fill in the blank Trade Table with your activities using three possible procedures.
You can find essential features in CoinTracking like the Statistics Chart that allows users to view numerous trade analyses. The charts include profit or loss per coin, currency value, and trading volume. Interactive chart calculations start on the very first day of trading up to the present day. Each chart contains data sets or collection of data that traders can conceal by clicking on the legend or choose to show the information again.
For tax purposes, the Tax Declaration Export function assists users in declaring Bitcoins as well as other virtual assets. In line with the First Out and First In (FIFO) technique of inventory valuation, CoinTracking computes all trades accurately and automatically. This will make trips to your accountant run a lot smoother at tax time as all the information will be at your fingertips. That said, please note that most of the tax reporting is geared for the US taxation system and there may be gaps when compared to your local tax laws. Best to seek professional advice from a Tax Accountant.
With the Daily Balance feature, the user can add and compute all trades for the day. The sum of traded coins to date including total value, expenditures, and profit-loss will show instantly. Using the available data, you can determine entire coin stock during a specific data in the past or current time. Meanwhile, the Average Purchase Price will notify investors of potential profits through the “green color” or losses via the “red color.”
Advances features of CoinTracking includes the Bitcoin Analysis which details assessments for every development stage, analysis of Exponential Moving Average (EMA), Google Trends, price forecasting, and risks in changing prices.
Indeed, if you are looking for a consistent crypto portfolio manager, CoinTracking appears as one of the more reliable options.