One of the most important and daunting tasks when it comes to cryptocurrency is managing it. Specifically how to track cryptocurrency profit and losses. Getting in and out of coins is really the easy part of the equation. However, when you have multiple coins and multiple positions, keeping track of where you are can be hard if not a nightmare.
I found myself constantly asking these questions:
Are you in profit or loss?
What price did I buy in at again?
What is my target for the trade?
So I will share with you where I started and what I am using now to keep track of my trades and how I am managing them.
The first place I started was the good ole spreadsheet.
It was ugly to start off. Figuring out all the fields I needed and the data I wanted to see took a few days and some refinements to figure it all out. When I was done, I was actually pretty impressed with how it looked but there was still a lot to be desired.
Once I got to a certain point, I thought that someone out there has to have thought of this and created a better way to track all this data. So I began asking around and got pointed to a few different services that take care of this for you and I am really excited to share what I have found.
The Search For Automated Cryptocurrency Profit and Losses Software
Mobile Apps Tracking
My next step I was directed towards was to use a nifty little app called Blockfolio(https://www.blockfolio.com) It’s built only for mobile devices. Don’t worry though, they have an app for Android and Apple devices, plus did I mention that it is FREE? When you go to their site, you can click on download and it will take you to this part of the page.
This is a screenshot. Clicking or tapping the image will take you to their website. Please note that you will leave this site.
Once you have it installed, you can select the coins that you have holdings in or want to watch.
According to their website, they boast tracking over 800+ cryptocurrencies. The interface is basic and to the point, which I like. You can see your portfolio in terms of Bitcoin or USD. It shows you the percentage change in the coin for the day, plus your portfolio, and you can look at where you stand in a moments time. Am I up or down? Answered as soon as the app opens.
Adding a coin is simple. Click the + and add your coin. Select the exchange, whether you are watching the coin, have bought into it, or sold it.
When you select the coin of your choice, Blockfolio gives you quite a bit of info about the coin right at your finger tips. I really like how on the first tab (Details) it gives you a plain chart of the cryptocurrency. There is nothing fancy here but it helps you to see what is going on even if you are not by your computer. They offer 9 different time frames to view which I find is also helpful.
On the second tab (Book) you get the order book of the coin so you can see where the prices are currently going between the Buy Orders, Sell Orders, and the Trades that have already taken place.
I LOVE the third tab (Alerts) and HATE the third tab. I love that it has alerts! This is one of the best features in my opinion. Get notified when the price hits above or below a certain price and whether you want to be notified 1 time or persistently. I have found this helpful for when I am not at my computer and out and about doing things. I highly recommend setting stop losses to minimize risk and setting these alerts for when you are near your target to collect your profits.
This is the part that I hate about the alerts. There have been a few times where my alerts did not trigger even though the price was at the trigger spot, so I will say that this method is not completely reliable so I recommend finding a secondary alert system to validate the alert or replace this feature. My only other complaint is that you cannot set a special sound for the alert. So you will find out that the triggered price alert sound just blends in with all your other alerts like Facebook, Emails, and other app notifications. That sucks because I am not going to hear that crap in my sleep and possibly miss selling out into my targeted profit zone.
The last tab (Holding) is PERFECT for getting an immediate glance at the performance of your holdings. The summary shows you simply your Profit and Loss, how many coins you are holding, the market value, and the net costs associated. The value can be changed from Bitcoin to USD or vice versa by clicking on your portfolio value on the main page.
Blockfolio has been a great tool that I am continuing to use everyday and would highly recommend to others to use to track profit and losses. The only draw back is that if you move any position to Tether, it does not have the ability to show you that with the Bittrex exchange.
Web App Tracking
Now if you are more of a web based person like me, want a few more features, and want to have your cryptocurrencies tracked using a web app here is my recommendation.
Head on over to CryptoCompare (https://www.cryptocompare.com) , create an account, and become a Cryptopian too! This web app has really impressed me. You can create multiple portfolios and get a TON of insight into your portfolio’s health including risk analysis, and accounting info. If you love analytics like me, this is for you!
Setting up your portfolio is easy but it does require you to manually enter your holdings. This took me about an hour or so to get up to date but it was well worth it. Seeing all of my stats first hand was exciting and really gave me some insights on my trading performance and now I can easily see my cryptocurrency profit and losses!
I use it daily to see where I am at a moments glance while I am sitting by my computer or go to the website from my mobile phone.
A really cool feature that I love is the risk analysis.
(Please note that anything with the lightning bolt next to it is part of the beta testing. Future subscription feature will include this. So test and use it NOW before they take it out of the Free account!)
It gives you a really nice overview of your diversification and volatility of the coins that you are currently in. Plus every page has a FAQ link on how to use that feature and that is very helpful!
My next favorite feature is the Accounting tab. Who has time to figure out revenue in and out, taxes, the rate at which you will have to pay, realized Profit and Loss, cashflow and income statements? This tab handles ALL of that for you! This makes your initial entries that you manually put in so important.
One other quick note is that you can make your portfolio private or public. So if you want to share your progress with friends, family, or show off to the other cryptoians you can.
Final Thoughts On Cryptocurrency Profit and Losses
What you measure is what you manage, and money is an important tool to keep track of and grow. I hope that this article helps you to start managing and tracking your portfolio so you will know where you stand with your cryptocurrency profit and losses because at the end of the day we aim for growth and progress. If you care for every Satoshi like a tiny seed, plant it in the right environments, and take care of it constantly you will end up with a large portfolio that could create wealth and a better level of life for you and your family.
As always stay sharp and trade for profits!
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. WhyNotCrypto.com does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred. As always, trade at your own risk and never invest more than you can afford to lose.