Technology has been key to progress since the invention of fire. Not only did it allow for the steam engine to speed ahead, but it also revolutionized financial markets. From paper-based stocks to digital ownership with low transaction fees. Anyone with a bank account can conduct a transaction with a stock or bond. This resulted in an inclusive world with equality coming closer. This is further strengthened by the introduction of cryptocurrency. Again a technology-based revolution that allows you to transact with as little as an Internet connection. To capture all these asset types, it makes sense to leverage an investment tracker. In this article, we will explain why such a tracker can be a game-changer.
Real-time insight into your assets
With different asset classes, you want to have a holistic view of your portfolio. Another requirement is real-time stock price information. Without it, you will be running behind. Especially in the crypto market, being on top of things is of crucial importance. With sentiment changing fast, you need to be on top of your game. Through push notifications, an investment tracker can provide you with this.
Advantages over spreadsheets
With formulas, you are also able to retrieve real-time stock market data in a spreadsheet. Why should you then consider an investment tracker? Through a tracker, you can directly integrate with brokers through APIs. This means that every transaction is automatically reflected. No more need to update your Excel sheet after every transaction. The use of an API is extremely safe, as it is provided by the broker and is only able to share predefined bits of information.
Why does this hold even more for crypto investments?
A tracker can be very helpful for stocks and bonds but is even more interesting for your crypto holdings. There are even dedicated crypto market tracker applications out there. Crypto is a bit different from traditional assets such as stocks as they do not pay dividends. However, they do provide you with rewards when you continue to participate in the network through the consensus mechanisms. For example, when you help validate transactions in a Proof of Stake mechanism, you will receive coins in return. However, this only happens when you keep your holdings in a dedicated wallet and off the exchanges.
When you make use of a tracker, you can keep your holdings in your wallet. The information is retrieved through the use of the Public Key. This means that no confidential information is shared and you can use it safely and securely. This also allows you to continue to ‘stake’ your holdings which makes them compound.
Trackers that serve both
In a time where people are investing in multiple asset classes, it makes sense to have a tracker that offers both options. There are already investment tracker applications out there that offer this. Hereby you can have a complete overview of all your holdings and combine it with the latest market information.