Today’s article covers five of the best tools for crypto asset management, from popular exchanges to hardware wallets to even debit cards.
It’s obvious that the Internet is playing a major role in revolutionizing communication. However, beyond that, it is also the driving force behind investing’s transition to the online world. It is also a contributor to breaking down both informational and execution barriers for a large class of retail traders. The ensuing wave of trading applications would bring forth extensive functionality to a much wider range of investors. In particular, the chance to be a participant in financial markets with greater execution speed. On top of that, there are greatly reduced fees.
Since this innovation, platforms such as eTrade and Interactive Brokers would go on to popularize trading. It would make it even more prevalent than it already was. Over time, it has created a wide range of asset classes, tools, and education accessible to many retail traders. What’s even better is that these platforms centralize an array of functions and provide liquidity from multiple exchanges and ECNs. This in turn adds to the advantages that come from online investing.
Managing crypto assets
The next evolutionary phase, so to speak, is meeting more significant milestones. As a matter of fact, UK robo-advisor and online wealth manager, Nutmeg, reached a landmark. The company was able to surpass GBP 1 billion in funds under management in 2019.
Still, as admirable as this achievement is, this degree of centralized execution is not so much about crypto trading. As a result, this doesn’t help the multiple challenges that make this type of trading unappealing. That is to say, it comes across as less attractive to investors who aren’t knowledgeable about the subject.
There is a clear-cut need here. With this in mind, it is no wonder that a variety of crypto asset management tools are appearing to aid retail investors. Using them will make their exploration of the market that much easier. For the companies responsible for creating these platforms, there is an obvious incentive. That being the fact that market capitalization of cryptocurrencies is close to $400 billion. Moreover, it is starting to show noticeable signs of imminent stabilization.
A more mature market will mean that investors lacking knowledge are more likely to dip their toes in. This will require in tandem a platform that will provide painless access. Especially in comparison to the fragmentation that defines the trading ecosystem as a whole.
What’s the appeal?
If we’re being realistic, we need to acknowledge that the process of purchasing cryptocurrencies is difficult. In fact, it is still comparatively harder than purchasing regular equities. Cryptocurrencies are always attracting new users, thus more market participants are becoming aware of the desire for straightforward tools. To elaborate, these are tools with designs that allow them to manage crypto portfolios. They are suitable for traders of any and all skill levels, making their usage open to pretty much everyone.
At this point in time, the first thing new traders must do is find a wallet. And it is important that this wallet accepts the cryptocurrencies that they are looking to trade. Then, they need to find an exchange that lists their chosen coin before completing a versatile and lengthy verification process. As soon as they enter the market, they need to spread out across wallets and exchanges. This is especially crucial if they want to diversify their holdings. It is doable, though the process’s complexity is a rather big barrier to entry for many potential traders.
There are many in the industry who fully recognize this particular issue. Alon Muroch, the CEO of Blox (a platform we will go over later), makes a note about this:
“…keeping track and managing your crypto assets is no walk in the park, even, or especially for the more experienced traders. Knowing where your coins are kept, how they performed, and what their real-time status is, can be a challenge.”
Subsequently, there are some companies that are introducing a tool that are now common in more traditional financial markets. That tool is what we know as ‘asset management’.
Asset management is the direction of all – or a part – of a client’s portfolio by a financial services institution. Oftentimes, these are typically an investment bank or, in some cases, an individual. Institutions offer their clients with various investment services, but that’s not all. They also provide a wide range of traditional and alternative product offerings. Some of these offerings might not be accessible to the average investor, which makes them extra special.
Rather than having to manage several accounts and wallets, crypto asset management platforms take a different approach. They are instead simplifying the process. They carry this out by helping users strengthen their diverse holdings while simultaneously providing better portfolio management tools.
The best of the best
Let’s assume that you own a substantial amount of bitcoin. Moreover, you are in the middle of diversifying your portfolio and you own an array of cryptocurrency. As soon as you get to this point, having a mobile wallet will not exactly be enough. Even though they are still useful (one is even on this list), it won’t cut the mustard.
In actuality, there are a number of tools out there that will help you manage your assets. Because there are so many brands for you to choose from, you will need to be on the ball when picking the best one(s). Being aware of what is new and what makes each option unique is vital. Honestly, it is tricky to find the most reliable crypto exchange or the Bitcoin debit card with the best rates. An accounting platform is also a necessity as your portfolio continues to grow. And there are plenty of those to go through as well.
With that in mind, let’s go over six of the hottest tools that can make asset management easier.
1 – Blox: Platform for accounting and crypto tax management
“Automated. Precise. Efficient.” This is how Blox boasts its services on its website.
Blox’s crypto asset management platform is an ideal choice for a holder that has multiple assets. With a simple and visually appealing interface, navigating the platform is a simple thing to do. And its services go beyond just tracking your assets. As a matter of fact, it also helps with auditing and filing crypto taxes. This is essential for a business owner who is receiving payments in the form of cryptocurrency.
Blox allows its users to create a variety of portfolios, which allows for comparatively easier asset tracking and accounting. It’s API (Application Programming Interface) also supports all popular exchanges and major blockchains.
If this isn’t enough to convince you, Blox currently has an assortment of high profile clients. Some of the leading firms like eToro, Nexo, and Paxful are all using the platform as a means for tax calculation.
2 – Binance: A popular exchange
One way to acquire crypto assets is to convince any of your crypto-savvy friends to lend you a part of their stash. However, there are some who are not fortunate enough to have this option at their disposal. Fortunately, you can always purchase crypto through fiat currency from an exchange. There are many crypto trading platforms to choose from, but one of the more popular ones is Binance. It is an essential crypto asset management tool thanks to its easy-of-use reputation pertaining to security and low fees.
Binance is one of the most famous exchanges primarily due to its popularity with new users. The company makes it a goal to be the most welcoming crypto exchange for new users. New users will do more than simply benefit from using Binance. In addition, it has facilities for traders with much more experience, like Binance futures and Binance margin trading. Moreover, it has services for businesses and merchants alike. Taking all of this into account, it makes the platform an ideal option for a trader with a diverse portfolio.
In contrast to other exchanges, Binance offers many features including the following:
- Trading crypto
- Buying crypto with fiat currency
- Lending crypto
- Crypto staking
And these are only a handful of the features that this platform offers users.
Bit by bit, the exchange is adding more cryptocurrencies to its portfolio. At the same time, it is continuing to build an excellent ecosystem around it.
3 – Ledger Nano S
Hardware wallets are undoubtedly a vital tool when your assets are gradually becoming incredibly valuable. Hardware wallets are responsible for keeping your assets in ‘cold storage’. This means that they are held offline and away from the Internet, where it is difficult to meddle with them. This is quite useful as soon as they reach a point where they are starting to gain substantial value.
There are many wallets to choose from, however, the most recommended wallet is the Ledger Nano S. This is by far the easiest one for you to start with. Not to mention it is the most affordable from the Ledger brand.
Ledger Nano S is a device that supports all major cryptocurrencies, as well as any ERC 20 tokens. Many consider it to be the most secure wallet, which makes it a must-have item for holders with diverse portfolios.
4 – Debit card: Crypto com cards
Over time, your crypto portfolio will steadily become more diverse. When this happens, there may be instances where you wish to use your cryptocurrency to conduct instant purchases. This is especially the case as more businesses are starting to accept Bitcoin and Ethereum as methods of payment. A debit card that gives you the ability to do this is a crucial tool. This is the main reason why the Crypto com is next on this list.
An app-based bank is an optimal tool for frequent travelers. Moreover, its Visa debit multi-currency travel card permits automatic conversion for more cryptocurrencies at the point of sale. This effectively allows the crypto user to effortlessly spend their crypto, as well as various currencies.
Users can spend a number of cryptocurrencies, including Bitcoin, Litecoin Ripple. Similarly, they are able to spend various fiat currencies like USD or GBP. Whichever currency they use, they can spend them on everyday goods, so long as the merchant accepts Visa cards.
5 – Mobile wallet: Atomic wallet
In addition to a hardware wallet, a mobile wallet is just as essential as a crypto asset management tool. Furthermore, it is a crucial tool for the more serious crypto holders to have. Owning a mobile wallet is a must if you are serious about cryptocurrency. This type of wallet will allow for quick and easy access to your assets. On top of that, it will also give you the ability to send coins quickly. It takes as much time as sending an email normally would.
The Atomic wallet is a must-have tool primarily due to its easy-to-use and visually attractive interface. The mobile wallet rates highly in regards to privacy and security. What’s more, it allows users to deal with the following crypto:
- Bitcoin Cash
- The wallet’s own AWC Token
This wallet allows users to buy or trade bitcoins and various other cryptocurrencies on the app.
6 – Kubera – Monitor and manage all your assets in one place.
Diverse investors know the struggle of managing many different assets across various different accounts. It’s this struggle that led one small, dedicated team of diverse investors to build Kubera: The only all-in-one asset management platform where you can track everything from cash to collectibles, crypto coins, real estate, stocks, DeFi assets, and beyond!
What makes this possible is Kubera’s unique blend of custom-built financial aggregators, an easy-to-use dashboard that employs both automation and manual capabilities, custom tickers for both stocks and crypto coins, and integrations with leading asset experts like Zillow and EstiBot.
Thanks to all of these features — and the additional ones being added regularly — today’s investors can keep track of net worth, asset allocation, and the real-time value of their portfolio no matter how digital and diverse it becomes.
For an animated walkthrough of how Kubera’s key features work together, we highly recommend visiting their “How Kubera Works” page.