No matter whether you're a seasoned trader or a newcomer to the defi scene, you'll know how important it is to get accurate DEX portfolio tracking. There are many pitfalls in the risky world of defi, but poor performance from portfolio trackers doesn't have to be one of them.
Fortunately, Dexfolio has a solution to the problems surrounding current defi portfolio tracker apps.
Built from the ground up specifically for defi, Dexfolio's app has everything a trader needs to manage even a complex portfolio quickly and easily. With one tap, users can get access to important market information that will enable them to make decisions on the go, an important feature in the fast-moving world of defi.
The Binance Smart Chain (now BNB Chain) has quickly become one of the blockchains of choice, with exchanges such as Pancake Swap, Biswap and MDEX topping the list of popular exchanges. The Binance DEX itself is built on the original Binance Smart Chain to provide a defi option alongside the original blockchain. Between them, these exchanges boast millions of investors.
Therefore, it made sense for Dexfolio to include inbuilt compatibility with the Binance DEX, given the number of users and the volume of transactions. The app automatically supports BSC tokens, along with other BEP-20 tokens.
The other giant of the industry, Ethereum, is also included, along with support for ERC-20 tokens. Onboarding for other defi exchanges is simple, giving users greater flexibility through access to multiple exchanges.
With Dexfolio's mobile app, the average cost of an asset is calculated, meaning that the initial price paid for the asset is tracked. It's easy for the original investment cost to be lost if the asset undergoes multiple transactions, but that original cost still matters.
It is especially important to track investments with reference to the original cost when it comes to crypto taxes. Depending on your activities (and to some extent, the laws of your country), you could be liable to pay both income taxes and capital gains tax on your crypto investments. Crypto assets are still new and crypto taxes continue to undergo changes, so it pays to stay informed.
If you aren't carefully keeping track of your initial outlay, it can become lost in the multitude of transactions an asset may undergo, and you could find yourself out of pocket with the IRS the winners through unexpected taxes. In the US and some other countries, cryptocurrency is treated as property for most purposes (thereby attracting capital gains tax), but as always, there are some caveats depending on what you do with it.
Dexfolio's app not only helps you to keep an accurate record of the initial outlay for your asset, but it also keeps a history log of your assets performance, which is good news for a worry-free tax season.
In the world of cryptocurrency, liquidity refers to a coin's ability to be converted to cash or other crypto coins. It's an extremely important metric for any trading asset, including cryptocurrency. The higher the liquidity, the better. Assets with high liquidity are more likely to be stable with less market volatility.
The liquidity of a pool is the number of coins available in that pool to use, the total value of which is expressed in dollar terms. The larger the liquidity, the more coins there are available for swapping.
Defi exchanges offer bonuses to traders who invest in liquidity pools, which are regulated by one of the smart contract protocols. The purpose of maintaining high liquidity is to avoid volatility when large transactions occur, and investors can reap enticing rewards for contributing to the pool. Each pool has its own rules for investment amounts and the proportionate ratio of DEX tokens.
But when a trader takes from a pool, there is a fee based on the percentage taken from the pool. If swapping large amounts or the trading pair has low liquidity, fees can add up to a significant amount.
By keeping track of transactions and associated fees, traders can avoid getting caught out by unexpected costs that may lead to losses.
Traders have effortless access to historical returns through an alert log. This is one of the handy tools to keep track of token data and other market trends, making investment decisions easier to manage.
Regardless of whether you're a beginner or an experienced defi trader, you can benefit from Dexfolio's beautiful UX/UI and seamless dashboard experience. Even the most complex portfolio is easy to track, while beginners will appreciate the simplicity of the interface as they gain experience.
