Course 3.5: Crypto Portfolio Management Tools and Resources
Discover the most proficient tools to increase returns and minimize risks for your crypto portfolio.
Introduction
Fun fact: Bitcoin has grown over 2,000% in the past ten years! How is your strategy thus far? One of the core components of a strong crypto investing strategy is having (and managing) a diversified portfolio.
A diversified, strategically-planned portfolio increases your exposure to various assets while minimizing the risk of loss. Since many cryptocurrencies experience continuous volatility, ensuring your funds are spread across assets is crucial. In previous lessons, we explored how to research and set up a diversified portfolio.
However, your portfolio requires ongoing management and analysis to generate optimum returns. In this blog, we’ll dive deeper into the valuable tools and resources investors can use to navigate their evolving portfolios.
Utilizing Crypto Tracking Apps and Portfolio Management Tools
Crypto portfolio management describes the strategies investors use to balance investments, fueling their decisions to buy, sell, or hold. Equipping yourself with the right tools to manage and track your portfolio is essential for a profitable investment strategy. Cryptocurrency prices change quickly; so your data must be accurate, updated in real time, and conveniently accessible.
This allows you to make fast, precise decisions that optimize your short- and long-term returns. Crypto tracking tools, like CoinStats or Coinmarketcap, provide insights into the movements of hundreds of cryptocurrencies and Web3 projects.
Your portfolio can consist of multiple digital wallets and crypto exchange accounts. Having a consolidated view of the gains or losses for all your investments will save you from manually checking each asset. A portfolio management tool can do just this, providing customizable reports on its performance and activity.
Risk management tools
Another valuable tool handles risk assessment (and management). These tools are tailored to help you navigate your investment journey with minimal risk. They can use multiple risk analysis frameworks and data analytics to give you a balanced risk vs. reward outlook.
These tools can even leverage emerging technologies like AI and machine learning to help assess your risk levels.
PRO TIP: Try Walbi Lighthouse for AI-driven insights on your crypto trades. Get the world’s knowledge at your fingertips, in seconds!
With crypto regulations and requirements constantly changing, risk management tools are also vital to ensure legal and tax compliance. Apps like CipherMine and CryptoMood are two good examples of risk management tools with many helpful features available.
Amongst those already mentioned, these benefits include:
- Customizable dashboards
- Real-time alerts
- Incident response
Before choosing the crypto tracking, portfolio management, and risk management tools you want to equip, it’s useful to consider some security concerns. Only use reputable tools with a long history of transparency and integrity, especially with their security.
Another consideration is if that app or platform complies with specific crypto regulations imposed in your region. Countries like Singapore, France, China, and more have stricter crypto regulations and taxes than El Salvador, Portugal, or Malta.
Staying Informed with News Outlets and Research Platforms
Keeping informed and active about crypto news can give you a huge advantage. Investing in crypto requires strong predictions for future events and anticipation of changing your market position for the best outcome. Staying up-to-date with market news, project developments, and crypto launches will allow you to make better-informed decisions.
This is especially crucial to keep in mind with your specific investments. Cryptocurrencies and crypto-related projects consistently experience technology updates, system developments, and regulatory impositions. You can tailor your strategy more strategically if you’re well-informed about new crypto events and how they will potentially affect your crypto investments.
Subscribe to reputable crypto-focused news outlets and research platforms with a record of integrity in their journalism. Cryptocurrency also suffers from scammers, who can use news articles to generate false hype around their projects and lure in more victims. Outlets like CoinDesk, Decrypt, and Bitcoin Magazine are great resources for daily news.
Research platforms you use should provide in-depth, expert data on crypto topics. They should offer white papers, detailed roadmaps, and deep-dive analyses into cryptocurrency markets. Established projects should share these resources specific to their cryptocurrency on their official website or app.
For example, on its website, you can find Ethereum’s white paper, road map, and many research and development initiatives under the research tab.
Other platforms - like Walbi - produce free crypto academies like the one you’re reading now. This will help you stay up to date on investment strategies, trading tips, and security protocols to follow.
Engaging with the Crypto Community and Learning from Others
The crypto community is especially vibrant and diverse, offering investors of all levels a welcoming place to exchange ideas and engage in discussion. Becoming an active member can help investors better understand the market, forming more accurate sentiments to base their decisions on. The community also acts as an information hub, providing the latest updates, cataloging useful tools, and sharing expert advice. There are multiple ways you can get started in the community!
- Crypto forums and discussion boards like CryptocurrencyTalk or BeInCrypto offer crypto enthusiasts a platform for long, organized discussions on various topics. They’re amazing to participate in or find answers to questions. The Walbi blog is a great example!
- Social media groups on platforms like Reddit or Discord are great for more casual sharing and convenient conversations. You can engage with huge groups of people, or find niche communities. Social media also facilitates sharing of crypto media, like photos, videos, and documents.
- Podcasts and YouTube channels host an incredible amount of educational materials - from case studies, personal stories, tips and tutorials, trading analysis, and so much more. These channels are great for self-study and expanding your knowledge of cryptocurrency, and related technologies. They also make fantastic resources to follow while you learn by doing, gaining first-hand experience with different crypto investments while staying responsible and managing risk.
PRO TIP: Join the Walbi Discord, Telegram, and X families to discuss crypto portfolio management strategies and meet some new friends!
Conclusion
Managing a crypto portfolio effectively requires not only a diversified investment strategy but also ongoing management, analysis, and staying informed about market developments. We highly encourage you to continue exploring and researching by utilizing the reputable tools we’ve listed above. Make sure to engage with the crypto community, and develop your portfolio through action. By continuing to learn about managing your crypto investments as you test and improve your skills, you can optimize your investment strategy and maximize returns in this dynamic and exciting market.
