In the not-so-distant past (let's say 3 to 4 years ago), trading was simple. There wasn't much to do with all your defi assets other than trade on exchanges. And that was simple enough that you could do it with a trading journal. Most people had no need for a portfolio tracker.
But then 2020 came along, and with it, a massive growth in the decentralized finance space. Defi protocols such as smart contracts enabled decentralized transactions to take place, creating an entirely new form of investing. Investment options exploded and suddenly tech companies were scrambling to create decentralized applications to manage newly-complex portfolios.
Dexfolio recognized the need for an industry-specific portfolio tracker; the earliest tracking apps proved to be unsuited to the defi space in many ways. Now, a new generation of portfolio trackers is emerging in the marketplace, and with it, some beautifully designed, user-friendly technology that makes keeping track of your portfolio a pleasure. When you find the right one, it's likely to be the only app you'll need.
So, what should you look for in a portfolio tracker?
The answer to this question depends to a point on the kind of trading activities that you undertake. There is no one-size-fits-all tracking app for every possible situation.
However, a good app should have the following:
There are many investment options now in the defi world, and being able to accurately track your entire portfolio is crucial. The more complex it gets, the more chances you have of losing money or getting yourself into trouble. Below are some of the defi assets and transactions that you can track with a portfolio tracker. There will undoubtedly be more options in the future as defi expands to include other assets.
Lenders can earn interest when they offer their coins to borrowers, often via liquidity pools. Borrowers benefit from the margin trading opportunities that defi lending offers. Some of the leading lending and borrowing services include Compound, Maker, and Aave.
There are various staking options available, but they all work in the same way. Stakers put their coins into a staking pool, where they have the chance to be used to add another block to the chain. Their staked tokens act as a guarantee for any new transactions that take place on the chain, and stakers receive a reward in return. Some of the well-known staking exchanges include Kraken, Coinbase, and Kucoin.
Also known as yield farming, liquidity mining is the process of providing liquidity by supplying cryptocurrencies to decentralized exchanges. Users receive rewards for supplying capital to the platform. Some of the best exchanges for liquidity mining include Uniswap, Compound Finance, and Balancer.
Trading is straightforward; traders exchange cryptocurrencies for other cryptocurrencies. Trading also allows users to exchange fiat currency for crypto. Top trading platforms include Binance, Crypto.com and PrimeXBT.
Derivatives are contracts signed by two or multiple parties to buy or sell certain crypto assets at a certain price point in the future. Trading platforms include BitMEX, Bitfinex, and Delta Exchange.
Wallets are for storing your private keys, or the passwords that give you access to your crypto assets. They also allow you to send and receive cryptocurrencies or spend your cryptocurrency such as ETH tokens or BSC tokens.
Wallets come in various forms and include paper wallets, where you store your private keys on paper, hardware wallets, which are devices that look at bit like a USB stick, and mobile apps such as Coinbase Wallet.
A good mobile app will track all your wallets; with Dexfolio's app, you can connect unlimited wallets.
It's actually an advantage to have multiple wallets for security purposes. Depending on the complexity of your portfolio, you might only need one wallet, but even in that case, it's still an advantage to have two. If a misfortune befalls one, it will not affect all your wallets and you will still be able to keep your crypto holdings safe. It's vital to keep a backup copy of your wallet.
Currently supporting several exchanges on the Ethereum chain and the Binance Smart Chain, Dexfolio's app allows users to access Pancakeswap, Uniswap, and exchanges on the Polygon chain. Users can also add other exchanges, connect unlimited wallets, and track a full portfolio with one tap. It's easy to see all the data, from the current buying price for a particular token to a transaction history, along with other important defi portfolio information.
Its flagship feature is its intelligent price alerts, making it an industry leader in this sphere.
Dexfolio's app was created in close consultation with the crypto community and is designed with users in mind. The company has plans to grow with the industry, making it a portfolio tracker with the future in mind.
The best way to track your defi portfolio is to download a tracking app. The type of app and the features you need will depend on your trading activities, but it's helpful to remember that sometimes less is more. You may not need an entire ecosystem; a simpler app will be easier to use, especially for anyone with a simple portfolio or beginners.
Yes, the new generation of portfolio tracking apps is being designed specifically for defi.
ETH is the Ethereum chain token. Ethereum is a defi; it operates under decentralized finance protocols.
Although it's possible to track a wallet without a tracker, it's much easier to manage with one.
The Peachfolio app is a tracker app for digital assets on the Ethereum and Binance Smart Chain networks. It has some handy features, including the Peachfolio app's gainers list, where it tracks the day's biggest defi gainers among the tokens. It also helps users to rediscover long-forgotten tokens tucked away in wallets that have grown in value over time.