Investing is becoming an increasingly complex landscape. With the introduction of bonds and stocks to the newly introduced cryptocurrencies. For investors, it is helpful to have a complete overview of their portfolio. This allows them to understand the current state, progress as well as guidance for decision-making. With a new type of stock and crypto tracker, this has now become a reality. In this article, we will see why such a tracker is helpful not only to track but also to adjust the investment strategy.
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An overview of all your stocks
Many investors are using several brokers to conduct transactions. This results in a scattered landscape, which is often integrated using a spreadsheet. While the spreadsheet has been powerful and helped many investors, there are more advanced applications available in the current days. A good example is the stock and crypto tracker, an application that combines multiple asset classes in a single overview.
Direct integration with brokers
One of the powers of such a tracker is the possibility to directly integrate with brokers. This happens through predefined Application Programming Interfaces (APIs) as defined and supported by the brokers. This means that the information that is shared is secured, and only predefined actions can be conducted.
This allows the investor to have a complete overview of the holdings across brokers while being able to transact as well. It goes even further than that: the tracker shows the transaction costs for stocks as these vary per stock exchange. This enables the investor to select the most favorable exchange to conduct the transaction.
Next to that, when a transaction is completed or a dividend is being paid, this is immediately reflected in the overview. This is another key differentiator from spreadsheets, where dividend payments and stock purchases need to be reflected manually. The use of a stock and crypto tracker allows for automation, transparency, and better transactions.
Tracking crypto effectively
When it comes to crypto, the landscape is more scattered than stocks. There are many exchanges and wallets where you can hold your assets. To integrate, you can consider an exchange. However, this comes with several disadvantages. For example, you cannot participate in consensus and often are limited when it comes to staking.
Cryptocurrency tracker advantages
With a cryptocurrency tracker, you can keep your assets inside your wallets. This comes with several advantages. You can continue participating in the consensus mechanisms, such as Proof of Stake. This enables you to grow your holdings while having complete visibility. Some wallets also offer staking, which is another way to compound your holdings.
With a tracker, you connect through the use of the Public Key. This is the publicly available key that contains no private information. This means that it is completely secure: the tracker does not have the ability to conduct transactions but simply retrieves the information from the public blockchain.
Improving your investment strategy
Now that you have a full view of your investment portfolio, you can look at how to improve it. For example, you can create clusters of stocks and crypto and label them. When you set a certain target for them, you can track it and act accordingly. This allows you to continuously adjust to optimize your return on equity.
