How to Manage Crypto Holdings

The Investors Centre like the California Gold Rush in the 1850s, today’s digital cryptocurrency rush is bringing fortune-hunters and financial professionals into the picture. With the emergence of this new frontier, however, comes the need to manage the complex accounting and reporting requirements of these unique assets.

Cryptocurrency values can move wildly over short periods of time, which makes tracking their value an important aspect of a robust crypto investment strategy. A crypto tracker can provide valuable insight into the value of your holdings, allowing you to make informed decisions that limit emotional decision-making and improve overall investment performance.

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A crypto tracker can also help you understand your unrealized gains and losses. This represents the paper profit or loss that you would see if you sold your crypto at this moment, and it’s an important part of understanding your portfolio. In the US, you only pay taxes on realized profits, not unrealized ones, so tracking these changes can help reduce future tax liabilities.

Additionally, knowing your unrealized gains and losses can help you make smart diversification decisions that protect your investments if one sector experiences a decline. For example, if the DeFi sector experiences a sell-off, investing in longstanding large-cap coins can help stabilize your portfolio while you wait for market conditions to improve.

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