The crypto boom extends well beyond Bitcoin. Investors can select from over 10,000 cryptocurrencies. Some of these crypto assets have significant potential. For example, Dogecoin and Shiba Inu went from unknown to superstar coins in a matter of months. These coins produced life-changing returns for people who got in early.
Most people missed out on these surging cryptocurrencies. Some investors don’t know how to spot promising cryptos, and others don’t know how to assess a cryptocurrency. The rules for crypto are different for stocks and real estate, but a crypto portfolio manager can help. These managers have the expertise to spot great opportunities and provide you with a return on your investment. We’ll discuss the role of a crypto manager and reasons to consider a portfolio management tool.
Active Investment Management App
What is a Crypto Portfolio Manager and How Does It Work?
A crypto portfolio manager trades crypto on your behalf. Investors provide managers with funds, and they allocate funds across promising cryptocurrencies. It operates under a stated objective. Some of them promote a lower-risk strategy that focuses on established cryptocurrencies such as Bitcoin and Ethereum, while others cater to high-risk, high-reward individuals. These managers may focus on altcoins with small market caps that can fade or become rising stars. You can select a crypto portfolio manager with objectives that align with your risk tolerance.
How Can You Track Your Crypto Portfolio Manager?
Investors can look at a crypto portfolio manager’s historical returns. This data helps investors gauge a portfolio manager’s past performance before investing with them. You should compare a crypto portfolio manager’s performance to a crypto ETF or fund related to their holdings.
You can check the performance of any platform like you would with any stock or crypto holding. You can visit your portfolio at any time and keep track of your profits. In addition, they can analyze performance over several timeframes, such as the previous month, year-to-date returns, and lifetime returns.
Crypto portfolio managers differ from passive investing. A passive portfolio doesn’t have much activity. You put money into funds and hope assets move in your favor. Someone isn’t handling the funds for you in a passive account. Investors can automatically invest in passive portfolios and not think much about them.
An active portfolio requires more work but can produce higher returns. Full-time active users can trade crypto to mitigate risks and respond to price changes in real-time. Cryptocurrency investors can receive support with trading instead of doing it themselves. Managers take the active work off your shoulders. They manage your portfolio activity to balance risk and returns. Crypto portfolio managers won’t manage your entire portfolio. They will only manage the funds you give them. You can buy individual stocks, mutual funds, and crypto without worrying about a crypto portfolio manager touching those holdings.
Is A Crypto Portfolio Manager Right For You?
Crypto portfolio managers can enhance your returns and give you exposure to promising cryptocurrencies. The best crypto portfolio tracker can simplify investing for many people, but a manager is not suitable for everyone. A popular one can find under the radar cryptocurrencies, follow the crypto markets every day, and keep track of current events. If you can do those things yourself, you may not need a crypto portfolio manager.
Crypto portfolio managers make the decisions for you, helping you avoid emotional investing. Although investors should focus on logic, many get driven by their emotions. You may buy a high rising crypto because you fear missing out. Similarly, you may sell a crypto on the decline because you don’t want to incur additional losses. A crypto portfolio manager can stay focused on the long-term and isn’t as prone to emotional investing. A cryptocurrency portfolio tracker focused on trading on cryptocurrency exchanges can make movements based on technical analysis instead of emotions.