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What does it mean to manage your crypto?
In simple terms, it means you are in charge! It’s all up to you. Win or lose.
From the very beginning, the motto of the cryptocurrency world was to, “Be your own bank!”. However, being your own bank means you are 100% responsible for your crypto, which translates to being 100% responsible for your money! While most bitcoin anarchists are comfortable with the idea of “being your own bank”, the average person buying crypto today isn’t aware of all that is involved with managing their crypto.
If you completed the first three courses in this series on Getting Started with Crypto, you should already be comfortable with buying crypto from an exchange like Coinbase and storing it in a wallet like Exodus.
Now it’s time to learn about the different types of portfolio management tools, why you need one, and when to use each type of portfolio tool.
If you’re like most crypto investors you’ve probably bought more than one cryptocoin. And most likely you purchased them from different sources. Maybe you bought some from Coinbase, or staked some cryptocoins to earn rewards (more an that topic in another course), or deposited to a crypto bank to earn interest. There are lots of places to buy and invest crypto. Once you start collecting several cryptos into different wallets, you might lose track of where you put them! I know because, it’s happened to me.
Losing sight of your crypto investments could cause you to miss out on an opportunity or even worse to lose your cryptocoins. This is why a good cryptocurrency portfolio tracking tool is so important. Think of it as your crypto bookkeeper. It could be a website, app, or other type of platform that allows you to keep watch over your investments all in one place.
There are two types of portfolio management tools:
- Crypto portfolio tracker
- Crypto portfolio tax software
Sometimes these tools are combined into one software and sometimes they are separate software tools. With the crypto industry growing as fast as it is, these companies are offering more and more services. For example, some of them offer crypto trading inside the portfolio management software. This offers a convenient option, but I haven’t yet chosen to trade this way, because the fees are usually high and sometimes the platforms are unreliable. It’s a risk I I’m not yet willing to take.
The next two chapters will explore these two crypto portfolio tools in more detail. Then in the last chapter I’ll share how I use these tools and which tools I like best.