Crypto Trader Smart Moves in 2022
Likely no crypto trader would look back on 2021 and think it was anything shy of a banner year for the digital assets market.
The price of the reigning crypto king, Bitcoin, sky-rocketed to an all-time high and that persuaded institutional investors to pile into the market – a sign of support that was crucial in ushering Bitcoin further along that yellow brick road to legitimacy.
Even Ethereum, the #2 cryptocurrency asset, achieved its own price record last year. The raging popularity of cryptocurrencies caused more mainstream investors to jump into the market, and government officials across the globe formally began measures to apply regulatory measures to what was clearly a financial market that was here to stay.
Now, we're a full quarter into the 2022 trading season, and while the market hasn’t been nearly as kind to investors as it was in 2021, the public’s interest in crypto continues to trend upward. For example, the number of US citizens who say they've invested in or traded cryptocurrencies is up from 10% to 16%.
That’s all well and good for the growing popularity of cryptocurrencies, but investors need to track their crypto investments if they know what's good for them.
There is an obligation on every cryptocurrency investor to properly handle the taxability of their digital assets. The more exchanges that investors trade on, the more difficult it is to track taxes. Making this even more terrifying is the fact that, according to regulations, taxes become increasingly entangled when a cryptocurrency investor transacts or trades crypto over multiple exchanges – a common event in the crypto-verse.
And don't look for any help from the crypto exchanges – most of them aren’t presently providing their exchange customers with the documentation they need to report on capital gains and losses. However, they will need to have a plan to provide such information by the beginning of the 2023 tax year.
For now, the most prudent step that a crypto trader should take, as in immediately, is the adoption of a reputable portfolio tracker. The technology behind many of the best portfolio trackers has evolved rapidly. They’ve become crucial tools that allow crypto traders to track the performance of their crypto investments over time.
Here are some of the best portfolio trackers:
Capable of tracking diverse crypto and DeFi assets, CoinStats allows crypto traders to connect to a wide array of the most popular exchanges and crypto wallets. CoinStats is a downloadable mobile app with a solid customer service team that you can go to for answers on managing your portfolio.
Crypto traders will find the automated journaling and analytical resources of Coin Market Manager very appealing. This tracker's analytics have proven invaluable resources to crypto traders, who use them to enhance their decision-making skills in choosing which cryptocurrencies to invest in.
If simplicity is the most important feature for a crypto trader, then the Kubera portfolio tracker is the logical choice. Kubera offers traders the ability to track all their accounts, including cryptocurrency, within one single platform. There is a modest fee of $15 per month or $150 per year, but investing in a platform that gives you the simple viewability of all crypto assets on one simple screen may be worth the cost.
After the frenzy of 2021, when every crypto trader was convinced that they were on the path to unimaginable prosperity, organization is the best step we can take now as we await the rest of 2022.
Author: Greyson Kelly
Greyson Kelly is a business writer living in Milwaukee, Wisconsin. He writes extensively on technological trends, cryptocurrency, and ‘cutting edge’ industry topics. He has an MBA in Business and has over a decade of experience in communications and public relations.