The cryptocurrency investment space is low. There are hundreds of alternative cryptocurrencies out there, many of which employ exciting technologies and provide innovative features. There are currencies, blockchain platforms, app coins, and all types of other “stuff”. There are even meme coins like Dogecoin and Pepecash.
If you’re a cryptocurrency enthusiast, it is easy to consider and use these altcoins that bear so much promise (or not). However, keeping track of all your investments is nothing less than a challenge. Investing requires you to find different exchanges and wallets. This guide will help you keep track of all your prized crypto holdings.
Of course, there are some that believe Bitcoin is the one and only cryptocurrency worth talking about or investing in. If that’s your case, this guide can still be useful for you.
CryptoCompare provides a cryptocurrency portfolio that allows you, not only to keep track of all your holdings and your profit/loss, but also comes complete with an array of additional tools and data that can help you improve your overall investment strategy and today, we’re going to show you how to take advantage of it. Let’s get to it.
Part 1 – Create an account
The first thing we’ll need is a CryptoCompare account, so let’s create one
Step 1: Click here to go to CryptoCompare
Step 2: Click “Login/Register”
Step 3: Click “Signup”
Step 4: Enter your email and password, then click “Signup” (You can also sign up with your Facebook or Google+)
Step 5: You’ll be sent an email with a confirmation link inside. Click it to confirm your email address
Part 2 – Create a crypto Portfolio
Now that you have confirmed your account, it’s time to get started with your portfolio
Step 1: Click “Portfolio” to start tracking your holdings
Step 2: Click “Create your first Crypto Portfolio”
Step 3: Enter the name of your portfolio. Anything that helps your identify it works
Step 4: Choose the currency you want your portfolio value to be displayed in. You can choose a national currency, Bitcoin and even gold
Step 5: Enter an optional description of the portfolio
Step 6: Finally, choose between a private and a public portfolio. The former is kept secret from everyone, including the moderators and the latter can be seen by anyone
Step 7: Click “Create”
Nice! We’ve just created our first crypto portfolio. Let’s add a coin we purchased earlier to it.
Part 3 – Add coins to the Portfolio
So, now that we have our first portfolio, it’s time to add one or more coins. Remember, you can have multiple portfolios of different kinds (private or public). You can also have multiple coins in one portfolio. Basically, as many as you want. Let’s add a coin
Step 1: Click “Add your first coin”
Step 2: First, choose the coin you’re adding. You can do this by typing the name or ticker of the coin (You can write the first few letters and the website will give you the options available). We chose Bitcoin.
Step 3: Type in the amount of coins you have/bought
Step 4: Enter the price you bought your coins for. You can enter the price of each coin/unit or you can enter the collective price of all the coins you have
Step 5: Choose the currency of the price you bought for. Even though your portfolio will count the value of your holdings in the portfolio’s main currency chosen in Part 2, You can enter the price in a different currency. This will allow you to see how much you won/loss against that currency and the portfolio main currency.
Step 6: Choose if the price you entered in Step 4 is the total price or the “per unit” price. In our case, it’s per unit
Step 7: Enter the day/month/year you bought the coin on
Step 8: Optionally, you can also add a description that may help your remember when you bought or when you want to sell, etc
Step 9: Now, let’s go to the advanced options. Click “Advanced”
Step 10: Choose where your coins are kept. This is important in order for the portfolio to formulate an accurate risk assessment.
Step 11: If you picked “A wallet”, you can choose the wallet and add the wallet address. If you chose “An exchange”, you can choose which exchange.
Step 12: Lastly, click “Add to Portfolio”
Part 4 – “Reading” your portfolio
Now that you have added your coins to your portfolio, it’s time see the info we have available. For this guide, we’ve added a few more coins: Ethereum and Monero:
You can always add more coins by clicking “Add Coin”
Let’s take a look at what we have in the portfolio. Starting from the top, we have general information relative to the coins we are currently holding. First the display currency of the portfolio (which can be changed at any time. Then we have the “Acquisition Cost” which is the price you paid for all the coins in the portfolio. The “Realized P/L” is relative to coins you have already sold and how much you made/lost with them after selling (thus the “realized”). Then, you have the “Profit/Loss”, which is how much you win/loss if you sold now. The “Holdings” are the collective value of your holdings. The “24H Profit/Loss” is the profit/losses made in the last 24 hours.
Then, we have the “Portfolio Change”, which is relative to the value won/loss during the time period selected on the chart (In this case, 1 day). Then we have the minimum and maximum value our holdings have achieved and lastly, we have the most and least profitable cryptos. Below, you can also see a chart, which can be adjusted in terms of time period and type of chart (Open Positions and Period Profit/Loss)
Lastly, we have individual info on each coin we hold. We have the current price, the total value of the coin holdings, the profit/loss of that coin and the percentage change since we bought it.
Part 5 – Risk Analysis
Now, let’s move to the advanced options above the chart, the “Risk Analysis” and “Advanced Chart”. Let’s start with the former, click “Risk Analysis”
We can see four charts. Let’s see what each of them means. The first one, “Wallet/Exchange Exposure”, is how protected your holdings are. Keeping them in an exchange is extremely risky as these can be hacked (or worse) at any time. This chart gives you an idea of how much risk you’re taking in by keeping your holdings on an exchange/wallet.
Then, we have “Crypto exposure”. This chart helps you keep an eye on your portfolio composition by showing which coins you are the most exposed to (which coin price will affect your portfolio value the most). To reduce the risk of one dominant coin exposure, you can choose to diversify and have many coins with a similar percentage in your portfolio.
Next, “Liquidity Exposure (Time Until Liquidation)”. This one is very useful and is a risk that is often ignored by new investors. This chart tells you how long it would take to liquidate your coins into your portfolio currency based on the orders and volume in the CryptoCompare Index.
Lastly, we have “Volatility Exposure (Last 30 days)” which gives you an overview on the price swings of your portfolio. The higher the volatility, the bigger movements you can expect in your portfolio value.
Part 6 – Advanced Charts
Now, let’s move on to the Charts, click “Advanced Charts”
The advanced chart gives you the following visualisations/metrics for your portfolio: Holdings, Period P/L, Performance, Volatility. On top of each chart, you have the basic statistics: minimum, maximum, average and standard deviation.
Let’s go through each of the visualisations/metrics. The holdings chart shows how the portfolio value has value evolved over time. The Period P/L chart allows you to monitor your profit/loss by this chart so see which were the most profitable periods. The Performance chart is used to measure how well your portfolio has done. Lastly, the Volatility chart shows how stable/unstable your portfolio value is over time.
Part 7 – Sell a coin
Now, for the last part of the guide, selling a coin. Yes, selling an altcoin can be hard After all, we usually buy a certain coin because we like the idea/project/tech. However, that moment is bound to arrive, so get ready. Adding a coin as sold on the CryptoCompare Portfolio allows you to keep track of your realized profit/loss.
Step 1: Go to the “Overview” section
Step 2: Click the Edit button on the coin you sold (or are going to sell)
Step 3: Click “Sell”
Step 4: Enter the number of coins you’re selling
Step 5: Enter the Enter the price you’re selling your coins for. You can enter the price of each coin/unit or you can enter the collective price of all the coins you’re selling
Step 6: Choose the currency of the price you sold for
Step 6: Choose if the price you entered in Step 5 is the total price or the “per unit” price. In our case, it’s per unit
Step 7: Enter the day/month/year you sold the coin on
Step 8: Optionally, you can also add a description of the sale
Step 9: Lastly, click “Sell”
Step 10: Now, you can check out your sold coins by clicking “Sold”
You’ll be able to see the details of the sale and the profit/loss you made of it.
That’s pretty much it! Now, you can not only keep track of your holdings but also have access to advanced statistics and insights that may allow you to improve your strategy and safety. Good luck and remember to never invest more than what you can afford to lose, especially when dealing with altcoins.