Since the inception of cryptocurrencies, the world of finance has been more complex. As an investor, you need to be able to track multiple types of assets, preferably in real-time. With crypto as a decentralized alternative to traditional finance, there are multiple ways to approach this. In this article, we will dive deeper into cryptocurrencies and a crypto tracker and see how it can be leveraged by investors around the globe.
Tracking the value of crypto assets
In traditional finance, you can own stock in a company. This stock is allocated to you by exchange and is managed by a bank or a broker. This can be simply referred to as a database, a ledger that contains the ownership of the stock. When it comes to decentralized finance, things are a little more complicated. The ledger is not a typical ledger but a state machine: it evolves as transactions continue. This means that by summing up the complete ledger of transactions, you know the balances of your account.
A crypto tracker leverages your public key
These transactions are registered on the ledger using the public key (i.e., a unique identifier for your account). You can enter the public key into a crypto tracker, which can then identify the holdings you possess by summing up the values on the ledger. The upside of this is the anonymity as well as the fact that the crypto tracker is unable to perform a transaction. To do so, there is a need for a private key that you do not need to share.
Continue with staking
This allows you to keep your holdings inside your wallet. This is beneficial, as it allows you to conduct transactions fast. Next to that, you can continue to be part of the consensus mechanisms. For example, when you have holdings in a Proof of Stake (PoS) based cryptocurrency, you continue to receive rewards for maintaining the network (i.e., validating transactions).
Combined with traditional financial products
Luckily, there is a portfolio tracker that allows you to track both cryptocurrencies as well as traditional financial products. This allows you to have an accurate overview of all assets. With sophisticated trackers, you can even integrate directly with your broker to view your holdings. Innovators are also looking at means to perform transactions directly through the tracker using API calls.
More than tracking itself: market insights
With tracking alone you cannot win the game. You need to be able to have valuable insights. However, with fake news on the rise and lots of sentiment on the crypto and stock exchange, you need to know what is reality. Trackers provide you with analysis on assets that are combined with the news. You can also set notifications for specific price changes, enabling you to relax while only receiving news when it matters. This allows you to act when needed, but enjoy your rest when trading days are calmer. Finally, there is a technology that makes trading less intrusive to everyday life.