How to Track Your Crypto Assets on Polygon

Posted on
March 17, 2022

Portfolio tracking is undergoing some much-needed growth as decentralized finance holdings explode globally. With new portfolio management tools launched regularly, what's been going on in the industry in recent times? And why did it matter so much? How does this affect Polygon users?

Defi portfolio trackers struggling to keep up with rapid industry changes

As anyone who's been following the crypto world knows, decentralized finance (defi) has undergone massive growth and changes over the past eighteen months. From just an idea several years ago, it has grown into a viable investment option that has seen millions of global users jumping on board.

Early adopters were forced to manually check multiple platforms if they had a few different digital assets, although, to be fair, the platform choices were not as numerous as they are now. The earliest tracking apps were not necessarily a great help, either. Most were adapted from centralized finance applications or were available in a desktop version only.

How does Polygon fit into the defi world?

Polygon Matic is a recent arrival on the scene, emerging as a side chain of Ethereum. It has experienced rapid growth over the past year or so, leaving many users searching for the best way to manage their transactions on the Matic network.

A better option needed to track portfolio holdings

The early tracking apps were less than ideal for tracking defi assets, with cluttered code and a generally poor user experience. Many were slow, complex to use, and deservedly gained the reputation among beginners that they were best left to the experts.

But developers such as those at Dexfolio are not the kind of people to wish there was a better solution. Seeing the need for a defi portfolio tracker that would address the problems inherent in the current offerings, they got to work to create a solution that would work across multiple defi platforms.

The next generation of defi portfolio trackers

The emerging generation of portfolio trackers seeks to address the shortfalls in the current technology. In Dexfolio's case, this means that its portfolio tracker must be user-friendly, with a simple dashboard. It contains only the features its users need, and is compatible with multiple defi protocols. Polygon users benefit from inbuilt protocol support, making it easy to get started.

With the growth in defi platforms, it makes sense to have access to various defi platforms, and Dexfolio's app contains inbuilt compatibility with the Binance Smart Chain, Ethereum, and Polygon.

How do I track my Polygon DeFi portfolio?

While some portfolios are simple enough to use a spreadsheet, or some trading strategies are simply to purchase some coin and hold it, a portfolio tracker remains the best option for comprehensive defi tracking. Some Polygon users don't need a portfolio tracker because they might only hold a single coin and it's easy enough to track it manually.

But for anyone who needs to manage defi assets across multiple chains, active traders, and defi investors who need to track their defi projects on the go, a good tracker app with a cross-chain defi dashboard is the best option. More about that in a moment.

How to choose the best defi portfolio trackers

While it's true that there is no single solution to every need, and different trackers offer different features, the best defi portfolio trackers have a few things in common. Check out the features below.

A smart defi dashboard

With a well-designed, intelligent dashboard, you can see all your defi assets in one place. This is important because it helps you to know what's happening across your full portfolio. Are some assets performing well? Are others languishing? Good portfolio health depends on you having ready access to information that enables you to make informed decisions quickly.

Meaningful price alerts

Some price alerts are more useful than others. In Dexfolio's case, price alerts are set across the entire portfolio as a percentage increase or decrease that takes the original investment amount into account. Individual coins can be adjusted or muted according to a trader's needs.

This removes the need for resetting alerts each time a price point is reached, which quickly becomes tedious.

Compatible with more than one decentralized exchange

Most of the new generation of tracking apps offer the flexibility of more than one platform. Dexfolio offers protocol support for the Binance Smart Chain, the Ethereum network, and Polygon. The exchanges it covers include Uniswap, Quickswap, and Pancake Swap, with the ability to easily onboard other exchanges as needed.

Portfolio value available at a glance

Things happen quickly in the fast-moving defi space. Portfolio values can change rapidly in the market volatility that comes with the territory.

Therefore, it's important to have fast access to your portfolio value. You should be able to easily check things such as liquidity pool performance, market activities, yield farming returns, and wallet balances. You should know your overall financial position at a glance.

Available as a mobile app

Most crypto investors prefer the convenience of a mobile app. This investor demographic is different from the demographic traditionally associated with centralized banking. Most investors in the defi space need to manage their portfolios around other work or activities and don't have time to sit at a desktop to monitor their crypto finances.

Moving into the future, any popular tracking app will be available as a mobile app.

Access to historical data

While at first glance historical data may not seem as important as what's happening right now, it can offer a clear picture of an asset's performance over time. Tracking statistics associated with yield farming, liquidity pools, and data from other smart contracts is a smart investment strategy that can help investors know which assets might perform well in the future, or which ones are volatile or too risky and should be avoided.

Analyzing in-depth data is an activity that is more likely to be useful to seasoned traders, but even beginners can benefit from the knowledge they will gather if they check their user data.

Track transactions easily

If you've ever accidentally overspent your budget because you weren't keeping track of your spending, you'll know how important it is to have an accurate knowledge of your financial position.

A good tracker app will enable you to know at a glance what your activities have been so that nothing gets lost. Whether you swap tokens, provide liquidity, earn rewards from yield farms, or undertake other activities, transaction data related to all your crypto finances should be readily available.

Manage trading activities on the go

It should be easy to manage buying, selling, and other trading activities on the go. Transferring assets, swapping defi tokens, or liquidity provision should not be a complex process and it should be something you can manage when you're out and about. A good tracking app will make any trading activities easy.

Dexfolio's developers have taken a minimum-steps-to-action approach, with users able to do most of what they need with one or two taps from the home screen.

Track wallet history for tax purposes

Whether or not you made a profit or a loss on your cryptocurrency activities, if you live in the US, the IRS needs to know about it. Other countries have different laws for crypto taxes, but in general you will need to report income, earnings, profit and loss, just as you would with any earnings from fiat currency. Losses may include:

Gas fees
Negative returns on an asset
Theft of a crypto asset
The loss of your private keys

Therefore, it's important to have access to that information in your wallet. If you have a self-custody defi wallet, the onus is all on you to provide the information to the IRS at tax time.

Dexfolio offers a minimalistic portfolio tracking service for Polygon users

Dexfolio's developers wanted to clear away the clutter and offer a clean, simple app that is easy to use and is visually appealing to Polygon users and others.

After extensive community consultation, they included features that are important to the community, but nothing unnecessary. The result is a fast, smooth user experience that cuts through the problems inherent in many other app offerings of the past.

Whether you're a beginner ready to start tracking your Polygon portfolio or an experienced trader wanting a seamless way to navigate the defi ecosystem, Dexfolio's app is worth considering for its simplicity and ease of use.

Is it for everyone?

Let's be honest here, different features appeal to different users based on their trading activities. Dexfolio's app is intended for those who want to simplify their portfolio tracking, making it easy enough for beginners to understand.

Advanced traders who enjoy minimalist features and no clutter will also appreciate it. For those users, an advanced analytics suite is planned for a future release.

If this approach resonates with you, Dexfolio may be just the thing you need. It's available to iOS and Android users and is simple to begin using.

Intelligent. Personalized. Free Forever.

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Written by
Ben Sash

Ben Sash is the founder and CEO of Dexfolio, the company behind the industry-leading cryptocurrency tracking app.

Ben has led the development and design of digital products for over six years in his various roles with prominent e-commerce brands.

With his experience in leadership, product design, and agile development, Ben has built an unstoppable team and compiled the vision for Dexfolio to shape the industry and become a leader in its sector.

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