Your cryptocurrency portfolio is a method of letting you organize and keep track of your digital assets in one single place. The portfolio shows the types of cryptocurrencies you own, the amount, and their value. Great crypto portfolios allow you to see the values of your coins in real-time.
A crypto portfolio is essential for every trader to determine and assess how their investments are doing and further allocate funds for new investments.
With over 106 million people worldwide owning cryptocurrencies, the market looks a lot different than it did five years ago. There are roughly over 4,500 different types of crypto in circulation, which is over four times the amount there were four years ago, which was around 1,000.
Keeping track of your crypto bags may be difficult unless you have the right tools. Crypto trading automation platform offers a Portfolio feature and a Positions feature, allowing traders to keep watch of their allocation as well as their profits and losses.
How do successful traders manage their cryptocurrency portfolio?
As mentioned, building a crypto portfolio is essential for traders to examine their risks and view their investments. By reviewing your portfolio, traders can form strategic plans before entering the market.
- Reviewing allocation of cryptocurrencies
By taking a look at your crypto portfolio, you will be able to form better strategies by understanding your cash holdings and your existing digital asset bags. If there is a specific strategy, you can execute your strategy by looking at how much of your cash you can invest in which cryptocurrencies.
This would save you from opportunity costs when missing out on other digital assets because of poor allocation. CoinPanel’s Portfolio feature shows you your entire crypto holdings, including the amount and cash value.
In addition, the feature includes a cashometer, which acts as an indicator of how much cash you still have, allowing you to make decisions on allocating these funds.
- Diversification of investments
While reviewing investments is the first step, it could allow you to build a plan on how to diversify your portfolio. Just like in traditional trading markets, diversification is essential to mitigate risks.
Although cryptocurrency markets have tended to follow a similar path, new trends suggest that this would not always be the case. Therefore, allocating your funds to different digital assets may reduce your risks in the longer term.
- Plan your entry and exit strategies
Risk management remains one of the most essential parts of crypto trading. After planning when to enter and exit a trade, you can set entry and exit points ahead of time using CoinPanel’s crypto automated trading platform.
The way it works is that you can choose your preferred trading pairs, then go to Trade to set up a Full Trade, which allows you to input your entry, stop-losses, and take-profit orders simultaneously.
- Using CoinPanel to manage your crypto trades and investments
Once you have finished setting up your trades on CoinPanel, and the entry has been executed, your trades will show up in the Positions tab, showing you your profits and losses in real-time. From there, you can check whether your trades are making you money.
You can check your crypto balances in the Portfolio as well.
To start managing your cryptocurrency portfolio and track your trades, log into CoinPanel!