One of the most profitable and fastest ways to make life-changing money through investment is by trading and investing in cryptocurrencies. The crypto market has evolved rapidly from its beginning with the launch of Bitcoin in 2009, to becoming a household name globally in little over a decade. Thousands of people worldwide have achieved financial freedom by investing in cryptocurrencies. And it is not because of simple pure luck, but by applying smart and informed trading strategies. So, if you are a crypto investor and want to achieve the same, a DeFi Portfolio Tracker can become a very important tool in your crypto journey. Today, in this article we tell you all the ways it can help your trading strategy.
What Is A DeFi Portfolio Tracker
A DeFi Portfolio Tracker is an app that can be downloaded on your phone or used as a browser extension. Its main purpose is to track the performance of your investments in real time. You can link your wallets across different centralized or decentralized exchanges and on various chains and networks to the DeFi Portfolio Tracker and check how they are performing without having to login into different wallets and accounts separately.
One of the best examples of a really powerful DeFi Portfolio Tracker is the CoinStats Portfolio Tracker which supports more than 100+ wallets and exchanges and can also be used to make swaps and earn through liquidity pools. It can help you make informed investment decisions such as when to buy or sell your tokens. They have a lot of other functions such as the ones given below.
Stay Up To Date On Your Investments
As mentioned earlier, the most common and important use of a DeFi Portfolio Tracker is to keep up with the price movements of cryptocurrencies as the markets are highly volatile and can change instantaneously. Thus, in order to profit from the crypto markets, it is important to know the performance of your investments regularly. You can connect all your wallets to the portfolio tracker and monitor their performance by simply a few clicks.
Set Price Alerts
By using a crypto portfolio tracker you can set price alerts for when you want to buy or sell a token. This helps in making timely investment decisions and does not require you to continuously stare at charts waiting for the prices to reach your desired levels.
Research Crypto Tokens
One of the most overlooked benefits of crypto portfolio trackers is the fact that they are very powerful research tools. And anyone that has dwelled in crypto markets, understands that conducting thorough research is the bedrock of a successful crypto trading strategy. All modern-day portfolio trackers help you in conducting research on the token with information such as market cap, trading volume, etc.
Once you have connected your wallets or accounts to a DeFi Portfolio Tracker, you don’t have to enter any investment you make into the tracker manually. Rather, the trackers automatically synchronize with your wallets spread across various exchanges, chains, and networks. Any investment you make will automatically be reflected in your tracker and you can monitor it easily.
Manage Crypto Taxes
Governments across the globe are working on ways to figure out how to tax cryptocurrencies and frame taxation regulations for crypto investments. But anyone who invests in them knows that keeping track of them can become tricky, especially when it comes to filing your taxes. This is where a DeFi Portfolio Tracker can help you by keeping track of your investments and how much profits or losses you’ve made on them.
Swap Tokens and Earn
A lot of crypto trackers allow you to swap tokens without having to login into your wallets or accounts separately. Moreover, they do so while giving you total and complete control over your assets and providing you with a safe and secure manner of making swaps and transactions. You can also provide liquidity and earn rewards through a DeFi Portfolio Tracker.
NFTs have become a huge part of the crypto markets and almost every crypto investor has bought one or more NFTs. A DeFi Portfolio Tracker has support for tracking your NFTs along with your crypto holdings.
User Friendly and Secure
The interface of a DeFi Portfolio Tracker is designed in a way that it is very easy to use even for a novice who is new to the crypto markets. On top of that, they are designed in a way that keeps the user data safe, secure and protects transaction history, etc.
It is very important to be up to date when making investments in the crypto markets. Unlike traditional markets, crypto markets are open 24×7 and 365 days a year. In such a situation, it becomes much more important to keep track of your investments if you want to make profits, earn passive income, or attain financial freedom through cryptocurrencies. A DeFi Portfolio Tracker is the best tool that you can use in order to achieve your financial goals.