3 Ways to manage a crypto portfolio on Swissblock with good fundamentals
There are many ways to manage a crypto portfolio on Swissblock including knowing the risks involved in cryptocurrencies and using stop losses and take profits. Analyzing your crypto trades concerning profit and loss and keeping a track of everything is very critical to attaining tangible results and making informed decisions. Managing your Bitcoin and other cryptocurrencies better by calculating the gains and losses also helps you to maximize the profits by not repeating the mistakes you made.
If you are someone who is planning to buy cryptocurrencies, you might want to first learn about the technical analysis so you don’t fall prey to the rug pulls and scammers. After that, knowing about technical analysis is a plus point that gives you an upper hand over other traders as sometimes the market is also moved by the retail traders who solely rely on technical analysis.
If you are an investor or trader and have already bought cryptocurrency then the first step is to analyze the performance of each coin and token separately. Say if a coin is not performing well, you might want to replace it with other which has good volatility in your favorable direction. In this way, you’ll be able to optimize your trading strategies to maximize your profits with some extraordinary skills to manage a crypto portfolio. This boosts up your overall portfolio.
Make it your habit to calculate your profit and loss as it is the most efficient way to monitor your portfolio. Continue reading to learn different ways to manage a crypto portfolio. If you haven’t built your Crypto portfolio yet, Join Swissblock today and trade without worrying about the trading fee as Swissblock charges zero trading fees for any volume of trade.
It supports a large number of crypto pairs to help you choose the one on your watch list. Spot trade has the largest number of pairs and there are more being added every day. Crypto pairs are added to the platform after a complete screening by a team of experts that helps to manage a crypto portfolio . The trading volume of Swissblock is being multiplied as the platform is getting more attention due to its multifunctional features.
Soon, it will be among the top 10 crypto exchanges concerning trading volume. So to manage a portfolio it requires proper strategies and fundamentals to understand wallet management.
How to manage a Crypto Portfolio:
It might sound difficult to manage a crypto portfolio but with Swissblock trading tools and trading tools, you can be straightforward and involve simple math. The followings are the simple ways to manage your portfolio.
Transaction-to-transaction is a method more suited for active crypto traders. To calculate your profits and losses on a transaction-to-transaction basis, you’ll need to do two things.
Step 1: Calculate the cost price and value of each trade in your local currency.
Step 2: Compare the difference between trade and cost value to determine the profit or loss.
Since Swissblock does not charge any trading fees, you don’t need to include those but you might consider including fees when you trade on other platforms.
For example, you bought one Bitcoin and you want to calculate the profit or loss on it. You’ll first check the cost value, the price it cost you to buy one Bitcoin. Then you’ll require to find the trade value, the value of holding at the time of selling. Now you can calculate the profit or loss by subtracting cost value from trade value. If the difference is positive, you are in profit; it’s a loss otherwise.
Profit = Trade value – cost value
2. Profit/ Loss Year-to-Date (YTD)
Year-to-Date (YTD) simply compares the value of your balances at the start of the year with the end of the year of a calendar year. This particular calculation method is more suitable for long-term crypto investors who HODL. If you’re a day trader you should not be looking for this approach. The difference with the approach is you’ll be using the exchange rate at the end of the year rather than each transaction of the pair.
3. Open & closed positions
The first two approaches are used for your previous orders, but what if you have opened positions? An open position means you have bought a coin and did not sell it. Contrary to this, if you bought a coin and sold it then that trade is a closed position. While you open a position and enter a trader, you first need to define yourself as an investor or a trader. The main difference is the holding period as day traders open and closes the trade in a few hours. Likewise, the short-term traders hold their portfolios for a few days, and then the mid-term traders hold their positions for a few months.
Investors are long-term traders and they keep the trade open from 1 year to 5 years or even more. You first need to categorize your positions on different coins of your portfolio to track the performance accordingly. For example, a mid-term trader would not be worried if the price dropped after a few days of opening the trade but it does affect the day trader. Traders can download a spreadsheet from Swissblock to track their order history.