Home Cryptocurrency 4 Tips on How to Track and Manage Your Bitcoin Investments

4 Tips on How to Track and Manage Your Bitcoin Investments

by Tracy Finke

There are a lot of factors that affect the crypto market. Therefore, you must track your investments and manage them. Otherwise, you will make a loss. So you need to take some time and learn about the different strategies that you will use. In addition to this, you should also pay attention to how things are working for you.

Taking a start is not difficult, managing what you are doing is. Many people face problems with their investments because of a lack of knowledge.

One of the ways of making money through investments in the crypto world is through trading. And because everything is digital, you cannot do trading like others. Therefore, for doing trading in crypto, you need trading bots like the one that we have here https://bitlq.net/.

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These bots are meant to make things simpler and easier for you. While doing trading for you, these bots also make you learn about the basics. So if you are a beginner, you should go with applications like bitlq.net.

These apps will let you grow while making profits for you too. But you have to be careful while choosing your trading app. It is possible that you went through so much to learn about the crypto world but got a scamming app. This can happen with anyone because there are a lot of scammers in the market. They want to earn through scamming people and you might lose all of your money.

Therefore, you should be very careful while choosing your trading app. Find a trustworthy app and you can also ask for suggestions from your friends who already are in this business. You might have heard about crypto from one of your friends or family member. So if this is the case, you should definitely give it a try.

Here are some of the ways that will help you out with the management of your bitcoin investment.

1. Dollar-cost average investments

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This is one of the best ways for beginners and for those who do not have much amount to invest.

Dollar-cost is an automatic system in which the system will invest a fixed price. For example, you set it at $1000. So, the system will invest $1000 every single time. In addition to this, the investment will be made irrespective of the rate of Bitcoin in the market.

So even if the market rate is high or low, your dollars will be the same. Thus, you will be able to make smaller transactions with the money that you have.

In addition to everything, the investments will be regular. Therefore, you will be able to make some profit if the market goes up. And when the market is down, you can just wait for the right time to sell your coins.

While doing this, you won’t be stuck at that price. For example, you observe the market performance and analyze that the market will grow. So you can make more investment at that time. Thus, you will have more shares and can earn more money when the price is high.

2.  Develop your exit strategy

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This is an important thing that many people usually ignore. If you are investing in any sector, you need to have an exit strategy. This will allow you to have a safe end.

Therefore, having an exit strategy is considered as something to must-have in a good plan. If there is no exit strategy, your plan is not good enough. As a result of this, you might face a big failure in the end.

While working with crypto, you should set a minimum and maximum limit of your profits. For example, you set the limit at 10 percent. So you have now bought the coins and looking at the market going above 10 percent. So when it reaches 10 percent, you should sell your coins. However, if there is a possibility that the market will go further up, you can wait for that too.

However, when talking about the low point of the market, you should not wait any longer. For example, you have set the low limit of 10 percent. If you have already made a loss of 10 percent, you should not wait any longer. The market can again go down. Therefore, you should sell all of your coins at that set limit. Otherwise, the loss might increase.

3. Follow market trends

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One of the best ways to manage your bitcoin investment is by keeping an eye on market trends. Pay attention to rumors and news reports. Even if the rumors are not correct, they have negatively affected the market. Therefore, if you do not want to suffer from it, you should become social. You should be in contact with market analyzers.

These connections will help you out in preventing a bigger loss. If you get to know a rumor that can have a negative impact on the bitcoin market, you can sell your coins and get your money out of the market. Afterward, when you see a rising trend in the market or when the market stabilizes, you can invest again.

4. Get yourself a crypto tracker

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All of the cryptocurrencies have a decentralized nature. There will be several wallets, platforms and trading bots. Just like that, you will have different wallets for different cryptocurrencies. And if you are investing in various cryptocurrencies, it would be difficult for you to manage them all.

At such points, a tracker would be helpful for you.

These trackers allow you to monitor the price changes in the market. Thus, you won’t have to look out for every single market by yourself. The tracker will do the job. Similarly, these trackers will also provide you with the most accurate market insights.

Some of the trackers that can help you out with market insights and your wallet management are;

  1. Coin market manager
  2. Vig.io
  3. Kubera
  4. Altrady
  5. Sharesight
  6. Delta
  7. Lunch money