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A Beginners Guide to CoinTracker: Your Ultimate Cryptocurrency Portfolio Tool

 

A Beginners Guide to CoinTracker: Your Ultimate Cryptocurrency Portfolio Tool


A Beginners Guide to CoinTracker: Your Ultimate Cryptocurrency Portfolio Tool






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CoinTracker is a free portfolio tracker that allows you to monitor your cryptocurrency investments across multiple exchanges and wallets.


While there are many great portfolio trackers for stock investing, not many of them support the range of assets that CoinTracker does.


Even if your primary interest is in stocks, you can use CoinTracker to keep tabs on your small crypto investments and make sure they’re growing in a healthy way.


Stocks and crypto assets have different risk profiles, so it’t unusual for someone to invest in both types of assets.


If you’re just getting started with crypto, or need help better organizing your investment strategies, read on to learn more about why you might want to use CoinTracker as your ultimate cryptocurrency portfolio tool.



What’s the Difference Between CoinTracker and CoinTracking?


CoinTracker is a free portfolio tracker that allows you to monitor your cryptocurrency investments across multiple exchanges and wallets.


CoinTracking is a premium service that provides additional features for cryptocurrency investors and traders, including the ability to import transaction data from your exchange accounts and calculate capital gains.


CoinTracking users can also access a feature called Tax Optimizer, which helps you estimate capital gains tax owed.


You can then use CoinTracker to track your overall capital gains and losses as you go through the year. If you’re investing a lot of money or you want to get serious about tracking your portfolio, then the additional features on CoinTracking may be worth the cost.


Premium plans start at $19.99 a month, but they offer a free 30-day trial. You can also opt to pay a one-time fee of $39.99 for a single year of access.



How to use CoinTracker


After you sign up for CoinTracker, the first thing you’ll do is add your wallets and exchanges.


You can do this either manually by pasting in your exchange API keys, or you can use their Import feature.


Once your data starts arriving, you can begin tracking your investment performance.


The tracking works the same for both stocks and cryptocurrencies.


You input the amount of money you’ve invested and the price of each asset.


You can also add notes to your investments to remind yourself why you bought the asset in the first place.


You can then track your overall portfolio performance and gain insights into how your investment strategies are performing.


It’s a great tool for getting a high-level snapshot of your financial health, and it’s free!



Track Your Crypto Investments for Tax Season


Keep track of your cryptocurrency investments so that you can accurately report them to the IRS when tax season rolls around.


It might seem like a pain now, but it’ll be a lot less fun if you have to dig through your statements and try to remember what you bought.


Plus, many exchanges don’t report your transaction data to the applicable government agencies, so you might be missing out on valuable tax credits if you don’t keep thorough records.


To ensure you’re following best practices, use the Market Value Verification Method. For each transaction, record the price at which you bought the asset and the price at which you sold it.


This will allow you to determine your gain or loss on each transaction, and accurately report it on your taxes.



Exchanges Monitor


Even though you can’t track a specific asset’s performance against the dollar or other currencies, you can see how it’s growing relative to other assets.


This can help you decide what to sell and when to rebalance your portfolio.


You can also see the overall performance of exchanges and which currencies are having the most issues.


This can help you decide where to place your money for safety and growth.


Keep tabs on the exchanges you use to see which ones have the best uptime, what fees they charge, and which cryptocurrencies have the most volume there.


You can also search for the exchange’s customer service track record and reviews to see what other people think about the experience.


This can help you decide where to place your money for safety and growth.



Portfolio Watchlist


Make a watchlist of assets that you’re interested in but that you don’t currently own.


This is a great way to track potential future investments and keep tabs on which assets are heating up and which ones are cooling off.


You can add a comment to each asset to remind yourself why you want to own it.


You can also add notes on the overall portfolio to remind yourself why you own certain assets.


This is also a great way to track your risk exposure.


If you have a large percentage of your portfolio in one asset, you’re probably taking a big risk. Keeping tabs on your watchlist can help you avoid overexposure to any one asset.



Integrations with Other Services


If you’re serious about tracking your investments, you may want to consider adding the following integrations to your CoinTracker account:


- Google Sheets: Track your data in Google Sheets and get a snapshot of your portfolio performance in your Google Sheet’s dashboard.


- Robinhood: Track your investment performance in your portfolio with Robinhood.


- Coinbase: Get access to your Coinbase account’s data in your CoinTracker account.


- TaxJar: If you’re tracking your taxes, use the TaxJar integration to pull your data into your CoinTracker account. You can then use the data to calculate capital gains and losses.


FAQ


Why do I need a portfolio tracker? If you’re investing in stocks or crypto assets, it’s important to keep track of your investment performance.


This can help you decide when to sell, when to rebalance, and how much money you’ve made or lost. How often should I update my portfolio? As often as you need to.


It’s a good idea to update your portfolio after each investment.


You’re also going to want to update your portfolio at the end of each month so you can accurately report your taxes.


Why do I need a tax tracker for crypto? If you’re making gains on your crypto investments, you’ll need to report that to the IRS at the end of the year.


Keeping track of your gains will allow you to accurately report them on your taxes, so that you don’t get in trouble with the government.


These are just a few of the ways that you can use CoinTracker as your ultimate cryptocurrency portfolio tool.


Keep track of your investments and make better decisions about where to put your money.

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