How Does Opting For A Robust Crypto Portfolio Manager Boosts Returns In The Volatile Market?

Key Takeaways

  • Explore the necessity of cryptocurrency portfolio management in the current market conditions.
  • Gain insights on the functionality and significance of crypto portfolio managers that help investors align goals and mitigate risks.
  • Discover the key features of building a crypto-based portfolio manager and the factors influencing development costs.

In the vast realm of evolving cryptocurrencies, it becomes essential for investors venturing into this space to track crypto assets closely. In this case, a crypto portfolio manager comes into place, satisfying the exact requirements of the investors and effectively reducing portfolio risk and management.

This blog explores the concept and functionality of a crypto portfolio manager and provides insights on securely establishing one for your crypto journey.

What Is Crypto Portfolio Management?

Crypto portfolio management involves selecting, analyzing, and overseeing investments to meet financial goals and mitigate risk. Success depends on mastering tools and mental models to optimize ROI. 

Despite readily available resources online, consistency is challenging. Emotional trading pitfalls, like hype-driven decisions and FOMO, make it easier for both beginners and experts. However, effective portfolio management helps control emotions, track asset performance, and refine investment strategies.

Why Manage A Crypto Portfolio?

Managing a crypto portfolio is essential for several reasons grounded in both traditional and modern financial principles.

  • Crypto portfolio management emphasizes balancing risk and returns based on individual financial goals and risk tolerance. Portfolios can be strategically crafted using diverse tokens, derivatives, and DeFi opportunities to meet these goals.
  • Effective management involves careful planning, including setting investment goals, defining risk tolerance, and diversifying assets across different tokens or classes within the crypto ecosystem. Monitoring portfolio performance using specialized software ensures alignment with goals and adapts to market changes.

How Does A Crypto Portfolio Manager Work?

A cryptocurrency portfolio manager is a digital tool encompassing apps, websites, or platforms. It facilitates users’ monitoring of cryptocurrency fluctuations and effective portfolio management. Its workflow entails:

  1. A crypto portfolio manager simplifies asset monitoring by consolidating data from cryptocurrency exchanges or wallets. 
  2. It can integrate automatically with these services or require manual input. 
  3. Manual trackers necessitate users to input transaction details such as asset, date, price, and fees, which can be time-consuming. 
  4. Automated integrations streamline this process by connecting directly to exchanges or wallets via API. 
  5. Once data is compiled, the tracker monitors asset performance. 
  6. The best trackers offer both manual and automated integrations, providing real-time updates and customizable alerts. 
  7. Additionally, they offer analytics tools to identify trends and assess risk, ensuring users have a comprehensive view of their investments.

What Are The Essential Features You Should Implement In Crypto Portfolio Manager?

To compete with the leading crypto portfolio managers in the market, it’s crucial to incorporate certain essential features into your manager, such as:

  • Comprehensive Asset Coverage: Ensure the manager supports various cryptocurrencies, tokens, NFTs, and tokenized assets for diverse investment monitoring and future-proofing.
  • Multi-Device Support: Ensure your manager’s accessibility across mobile, desktop, and web platforms for convenient monitoring anytime, anywhere.
  • Fiat Currency Conversion: Offer fiat currency denominations for easy monitoring and quick decision-making.
  • Automatic Synchronization: Ensure your platform syncs all crypto assets automatically to save time and streamline management efforts.
  • User-Friendly Interface: Equip your manager with an intuitive interface and visual trading charts to easily monitor asset performance over time.
  • Tax Reporting Capability: Provide tax reporting options to ensure compliance with IRS regulations for annual remittance.
  • Affordability Assessment: Evaluate the cost-effectiveness of tracking services to ensure optimal value for your investment.

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How Can One Define A Secure Crypto Portfolio Manager?

Crypto portfolio managers’ security relies heavily on their design and user precautions. Portfolio trackers typically utilize API keys to link to exchanges. To enhance security, it is crucial to ensure these keys lack withdrawal permissions. Reputable trackers never ask for users’ private keys, as sharing them can endanger users’ funds. 

Furthermore, a well-crafted manager prioritizes data privacy, ensuring users’ information remains confidential and isn’t shared or sold to third parties. Remember to provide a regularly updated crypto portfolio tracker that upholds security and functionality.

Listing Out The Robust APIs For Building An All-rounded Crypto Portfolio Manager

Several popular APIs can be implemented for a well-crafted crypto portfolio manager to enable crypto portfolio tracking functionality. Some of them include:

CryptoCompare API

It provides extensive cryptocurrency data, including real-time and historical prices, volume data, and news articles. It offers secure access and comprehensive coverage.

Blox API

This API streamlines data retrieval from multiple blockchains and exchanges, facilitating user-friendly dashboard creation. It offers features for reviewing past transactions.

Nomics API

This service focuses on real-time market data and insights from major cryptocurrency exchanges. It offers extensive coverage and features like real-time market cap and price data.

CryptFolio API

Beyond price tracking, it synchronizes trades from various wallets and exchanges for simplified portfolio management. It integrates tax management functionalities and supports popular exchanges and wallets.

Coin Stats API

It enhances app visuals and user experience with features like coin prices, historical charts, and insights into market trends. This API also incorporates fiat currency rates and crypto news for a comprehensive user experience.

What Are The Factors Influencing The Cost Of Developing A Crypto Portfolio Manager?

The cost of building a crypto portfolio tracker app depends upon various factors, including:


Basic apps offering real-time updates are cheaper, while advanced features like portfolio analysis or news updates increase development costs due to complex algorithms and data processing.

Platform Choice

Developing for iOS, Android, or the web affects costs. Single-platform apps are cheaper, but multi-platform or web versions add expenses.

Integration with Exchanges

Integrating multiple crypto exchanges increases costs due to API complexities and synchronization efforts. However, it provides users with a comprehensive view of informed decision-making.

Crypto Portfolio Manager: A Game-changer For Simplification Of Tax Calculations

Efficient documentation of crypto activities is vital for accurate tax reporting, making a reliable portfolio manager an invaluable asset. 

A well-defined manager must go beyond basic tracking, automatically logging and categorizing transactions. These tools distinguish between taxable events, like selling crypto for fiat or receiving staking income, and non-taxable events, such as inter-wallet transfers.

The manager’s tax calculator further streamlines the process by computing potential gains or losses based on transaction data and specific tax regulations. It also generates detailed tax reports compatible with tax filing software or for collaboration with tax professionals.

Wrapping Up

In conclusion, managing a diverse range of crypto investments presents a significant challenge. With price volatility and an expanding variety of tokens, exchanges, wallets, and DeFi applications, staying informed and making data-driven decisions demands more than just observation.Crypto portfolio manager provides the ultimate answer to your crypto management demands. Our proficient team at Blockchain App Factory can craft a crypto portfolio manager catering to both seasoned traders and investors, delivering unmatched user-friendliness and a wide array of features. Secure your market presence with a tailor-made crypto portfolio manager today!

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