The Importance of Keeping Track of Your Cryptocurrency

[ormeusecosystem]

Keeping track of your cryptocurrency is a must-do if you are serious about looking after your precious digital currency.


When you first dipped your toes into the world of cryptocurrency, it was exciting ? right? Setting up your first crypto wallet, signing up for an exchange and making that first trade into cryptocurrency. But since then, like many of us, you've probably signed up for multiple exchanges, and may have cryptocurrency sitting in a number of different places. Do you know exactly how much and where all your cryptocurrencies are located?

Having a proper system in place to record, track and monitor your portfolio will help in many ways, and is worth the initial effort.

Why is it important to separately keep track of your crypto?
 
 Here are a number of top reasons:

1. You have a separate record of trades, holdings and other relevant information available if ever you can?t access that information from its source.

2. It's necessary for accounting and taxation purposes. In most countries, you need to keep records for any potential tax gains/losses or trading income which need to be declared with your relevant tax authorities.

3. It gives you an overview of your portfolio and makes managing your funds easier.

The last point is especially relevant for serious traders who need to keep an eye on their portfolio and require up-to-date information in order to make informed decisions on trades. Having a portfolio tracker can help to monitor prices, trends and more.

See more at https://medium.com/ormeus/the-importance-of-keeping-track-of-your-cryptocurrency-8dc67a4bd565

[hugeblack]

I think you copied the unimportant part of the article. Focus next time.
Good article for those who have a lot of cryptocurrencies, instead of following them manually, there are some programs that facilitate this and most important:

- CryptoCompare
 - Delta
 - Blockfolio
 - Cryptonaut

The writer personally uses CoinTracking, which I considered it the best. [Cryptonaut= If you do not speak fluent English.]

[Bitcoin_Arena]

Another crypto portfolio tracking app I have used for a while now is BitUniverse.
You should probably add it on the list too. It's awesome.

[HODL2090]

I never leave my assets on an exchange except when purchasing or selling and putting up orders (which I only do one at a time) so I do not really need to track them. Just need a portfolio app to monitor their prices and exchanges traded on.

[Anomrak]

Right, it's definitly usefull to track your cryptos, I tried Cryptocompare portfolio but it's hard to keep it up to date and I had good stats on it a few weeks only.
I first used to fill an excel file with several sheets for values, adresses, graph history and after Cryptocompare experience I came back to it.

And now with bear market times, I had low motivation to update it...

Did any one find some desktop tool (ie not with an online account, like Microsoft Money) to keep information and track change ?
it's probably possible to have updates values through some exchange API.

PS : during this post writing I made some search on github and found Cryptoview https://github.com/anfederico/cryptoview but not tested

[bernardos]

It's defiantly important to keep track of your assets especially if you are trading daily and have no plans to hold for many years into the future.
If you dont keep track of important information and updates you might miss important announcements that drive the price up as well as the negative ones that will result in the prices to fall. 

[Velkro]

Keeping track of your cryptocurrency is a must-do if you are serious about looking after your precious digital currency.

1. You have a separate record of trades, holdings and other relevant information available if ever you can?t access that information from its source.

2. It's necessary for accounting and taxation purposes. In most countries, you need to keep records for any potential tax gains/losses or trading income which need to be declared with your relevant tax authorities.

3. It gives you an overview of your portfolio and makes managing your funds easier.

Wow. First time see this advice here since ever. Its really important, because problem will appear in future and people will miss a lot of needed information when they will need it.
Keep track of your crypto always, be smart about it, make some excel sheet or other ways to keep it all together.

[dothebeats]

-snip

Or just learn to use MS Excel and plot all of your assets and trades in there, together with all your losses and gains for a certain period of time (which is I personally do). In this way you'll really know which is which and what to do on your data all in all. While CoinTracking per se is already a great tool for such purpose, your own worksheet is still the best resource, with all your digital fingerprints and vital information included on the spreadsheet. Just encrypt the file and you're good to go.

[Theb]

I never leave my assets on an exchange except when purchasing or selling and putting up orders (which I only do one at a time) so I do not really need to track them. Just need a portfolio app to monitor their prices and exchanges traded on.

I do not think you understand what the OP is trying to say. For one what you are using now a, portfolio app, is also called a cryptocurrency tracker a tracker is also the one who helps you manage your assets whether you are holding it in an exchange or in a wallet. And also to make my point clear you don't need you cryptocurrency inside an exchange in order to manage your cryptocurrency. You might have misunderstood what OP is saying and mistakenly think of it as some kind of cryptocurrency recovery (tracker) tool if they are stolen.

[Spendulus]

I never leave my assets on an exchange except when purchasing or selling and putting up orders (which I only do one at a time) so I do not really need to track them. Just need a portfolio app to monitor their prices and exchanges traded on.

I do not think you understand what the OP is trying to say. For one what you are using now a, portfolio app, is also called a cryptocurrency tracker a tracker is also the one who helps you manage your assets whether you are holding it in an exchange or in a wallet. And also to make my point clear you don't need you cryptocurrency inside an exchange in order to manage your cryptocurrency. You might have misunderstood what OP is saying and mistakenly think of it as some kind of cryptocurrency recovery (tracker) tool if they are stolen.

The OP is wrong.

Putting a program on your computer from some vendor gives that vendor access to the information you put into his software. From the security point of view it creates a potential leak.

Somewhere down the line, he or a hacker changes the program, and perhaps you lose those coins.

You are enabling an outside party to gain a database of who has crypto and in each user's case how much, which and where.

This is not wise.

[jseverson]

The OP is wrong.

Putting a program on your computer from some vendor gives that vendor access to the information you put into his software. From the security point of view it creates a potential leak.

Somewhere down the line, he or a hacker changes the program, and perhaps you lose those coins.

You are enabling an outside party to gain a database of who has crypto and in each user's case how much, which and where.

This is not wise.

I completely agree with your points, but I would like to note that not all of them make you install software. CoinTracking, for one, is a web app, and it doesn't ask for your identity. It should be fairly easy to preserve anonymity if that's an issue, and you don't necessarily need to use it on the same computer you access crypto on. This isn't to say that using web-based trackers are without risks of course, but there are several ways to mitigate them.

It would still be best to avoid using a third party service for something you can do on your own, but when it comes to issues that could very easily get complicated (e.g. taxation), I could see the need for solutions like these.

[mk4]

Somewhere down the line, he or a hacker changes the program, and perhaps you lose those coins.

You are enabling an outside party to gain a database of who has crypto and in each user's case how much, which and where.

This is not wise.

You can change the API permissions to only be able to watch your funds and disable the withdrawal options though. But regardless, yeah, I definitely agree with you that it isn't a good idea, even just due to privacy risks itself. Probably the most I would do in tracking my holdings is to use Delta[1] and manually add my transactions. That way, I won't have any personal information/data that's affiliated with my portfolio data.

[1] https://delta.app/

[okala]

The last point is the most important and the frequently used among all by coin owners and traders, cause keeping account of you portfolio is a very important step towards good trading because with proper record monitoring you can easily find the coin that is doing good in your portfolio and make your trade on time.

[Sharon121212]

I think I have already adopted the first step and it has made trading more easier for me.
Keep separate records can help to prevent mix up and every detail is separately arranged

[magneto]

Having a portfolio tracker can help to monitor prices, trends and more.

There is absolutely a need to keep all records, although there are still some limitations as to using portfolio trackers.

Your data is exposed to third parties who is technically and potentially capable of conducting data mining on all of its user data, leading to privacy concerns and potentially to give themselves a better understanding of the market (although these are just theoretically, and have not been confirmed). So if you're extremely concerned about privacy, you should probably use a spreadsheet of your own.

But all the rest of your points definitely still stand - especially come tax time, it's hard to dig back to old trades all the time. You'll appreciate then why it is crucial that you record all your trades down as you conduct them, no matter how much hassle it may seem at the time, because they will compound as you go along.