See more: Long-term Crypto Investment for Newbies
Cryptocurrency Portfolio Trackers
Portfolio trackers are a computer program or service that allows you to track the movements of your assets. That way, you can gauge how your current allocation aligns with your long-term goals and easily track progress. Here are some tools that you might want to consider:
CoinMarketCap is an extremely popular price tracker that has an evolving portfolio feature. Its portfolio tracker is available and free on desktop and mobile devices. To use the portfolio tracker, you need to add your holdings manually, as it doesn’t connect to the wallet or exchange you use. There is also the option of adding to the price you purchased to accurately track your profits.
CoinGecko is primarily known for its cryptocurrency price tracking, but it also has a portfolio option. You can use it for free and it is available on your browser or mobile device. If you are already a CoinGecko user, this tool is also worth a try.
If you still want to trade at the same time as managing your portfolio, then Blockfolio is a good choice. This company has been in business since 2014 and is quite well known in the crypto industry. However, this app is only for mobile devices. So it does not provide a desktop crypto trading experience.
Delta is a mobile app that allows you to simultaneously view your crypto portfolio and traditional investments. It can connect to 20 exchanges and a variety of wallets, including Binance. There are both free and paid versions, but you cannot transact within the app.
Different types of cryptocurrencies
Bitcoin is the most famous and largest cryptocurrency by market capitalization. But a well-balanced portfolio will include different coins to reduce overall risk. Let’s point out one of them.
Nowadays, it is difficult to find new coins that are mainly used in transactions and payments. But if you go back to the birth of cryptocurrencies, most projects are systems for transferring value. Bitcoin is the most famous example, but we also have Ripple (XRP), Bitcoin Cash (BCH) and Litecoin (LTC), among others. These coins were the first generation of cryptocurrencies that existed before Ethereum and smart contracts.
A stablecoin is a cryptocurrency that is pegged to an underlying asset such as fiat money or precious metals. For example, USDT or BUSD pegged to the US dollar with reserves set at 1:1. PAX Gold (PAXG) uses the same system but links each coin to the price of a small ounce of gold, kept in stock. Although stablecoins They don’t need to bring big profits, but their value is close to the name and offers stability.
The cryptocurrency market is always volatile. Therefore, holding something stable in your portfolio is also very helpful. If stablecoins base their value on something outside of the crypto ecosystem, the drop in the crypto market won’t affect it. If you want to move tokens out of a coin or project, you can quickly move them to a dollar-backed stablecoin like USDT or BUSD to protect your profits. Converting to fiat is a much longer process than trading for stablecoins.
Just like a traditional security, a security token can represent many things. It can be equity in a company, bonds issued by a project, or even voting rights. Securities have been effectively digitized and included on the blockchain, which means they are largely subject to the same regulations as traditional securities. For this reason, security tokens are under the jurisdiction of local regulatory authorities and must go through a regulatory process prior to issuance.
Utility tokens act as keys to a service or product. For example, BNB and ETH are both utility tokens. In many utilities, you can use them to pay transaction fees when interacting with decentralized applications (DApps). Many projects issue their own utility to raise capital in a cryptocurrency offering. The value of a token should theoretically have a direct link to its utility value.
By holding governance tokens, you can get voting rights on a project and even a share of the revenue. You can find these tokens in decentralized finance (DeFi) platforms like PancakeSwap, Uniswap or SushiSwap. Like utility tokens, the value of governance tokens is directly related to the success of the project.