A Guide to Crypto Asset Management

A Guide to Crypto Asset Management

April 28, 2022 by Diana Ambolis
Many flocked to California during the California Gold Rush in the 1850s to try their luck at discovering the precious metal. Nearly 50 million Americans now hold at least one share of another (digital) “precious metal” known as Bitcoin. We’re in the midst of a fresh gold rush. Unlike the initial Gold Rush, though, this
Is Intellectual Property (IP) Blockchain-Ready?

Many flocked to California during the California Gold Rush in the 1850s to try their luck at discovering the precious metal. Nearly 50 million Americans now hold at least one share of another (digital) “precious metal” known as Bitcoin. We’re in the midst of a fresh gold rush. Unlike the initial Gold Rush, though, this one may be sustained.

But only if it satisfies one extremely critical criterion. Individual investors and financial experts must be able to join the crypto market with ease. This is why crypto asset management software is so important in today’s financial world.

What Exactly Is Crypto Asset Management?

Asset management is a time-honored process that predates investing. Asset management is the process of keeping track of, buying, and selling investments in order to maximize portfolio diversification, reduce risk, and/or boost returns.

Crypto asset management is essentially performing the same exercise on digital assets based on blockchain technology – think Bitcoin and Ethereum, DeFi coins, NFTs, and other digital assets.

Asset management software that can handle a wide range of digital assets has become a must-have for modern investors and the financial advisors who assist them.

Investing in Cryptocurrency Asset Management Software

A crypto asset management tool is exactly that: a software platform that assists crypto investors and/or financial experts in managing various crypto assets.

These applications typically allow users to connect several crypto accounts and wallets so that they may conveniently monitor all of their bitcoin holdings from a single dashboard. Many also have charts and analytical capabilities that provide customers with information on the performance of their assets, allowing them to make more educated decisions.

Crypto trackers and wealth trackers with crypto asset management skills assist everyone from first-timers to widely diversified investors in getting started with crypto, ensuring the market’s general health and growth. It’s the epitome of the adage “a rising tide raises all ships.”

What’s the Big Deal About Crypto Asset Management Right Now?

Simply, cryptocurrency asset management is exploding because cryptocurrency is exploding. Crypto is becoming mainstream, with powerful brands investing and major financial institutions joining in.

For new investors, learning the subtleties of cryptocurrency and figuring out the investing process can be time-consuming. Add in the hassle of checking several crypto exchange accounts and wallets on a daily basis, and it’s easy to see why anyone with more than a few crypto assets would put off their investment plans.

Crypto asset management is gaining traction and importance because it transforms what might be a daunting task into a manageable mission that allows investors to reach their full potential.

What Are the Benefits of Using Crypto Asset Management Tools for Retail Investors?

Everyday investors with huge crypto-assets should invest in crypto asset management solutions for a variety of reasons.

Making Most Out of Your Crypto Investments

If “out of sight, out of mind” applies to you, then implementing a crypto asset management system should be at the top of your priority list. It’s easier to comprehend where your crypto assets stand and what changes you can make to optimize and drive them toward your goals when you have a clear view of all your crypto assets.

Make and track progress toward your objectives.

The crucial word is ” moving ” when it comes to achieving goals. The crucial word is “moving.” Having crypto investments isn’t nearly as crucial as actively working with them to ensure the at they’re heading in the proper direction, i.e., expanding.

A crypto asset management tool that shows you how your portfolio changes over time might provide you with useful information on which assets to keep and which to sell so you can stay on track with your financial goals.

Ensure Diversification of High-Quality Products

Portfolio diversification is a golden rule in the investment world, especially when dealing with high-volatility assets like bitcoin. When you’re overwhelmed by everything with your portfolio, it’s too tempting to shy away from varied, continuing diversification attempts.

Again, the information provided by a crypto asset management platform is critical. You’ll be able to make intelligent and diverse investment selections that balance and protect your wealth in a meaningful way if you clearly understand the many sorts of coins you own.

Gain a Better outlook on your Wealth’s Health

You need to keep track of your net worth might help you comprehend the state of your finances as a whole. As time passes, it becomes difficult to calculate as your portfolio grows larger and more diverse since it demands you to grasp how the value of everything you owe compares to the worth of everything you possess. A crypto asset management tool that helps you track the value of your crypto is vital for estimating your net worth since it gives you a clear amount to add to your asset pool.


What Are the Benefits of Crypto Asset Management Software for Financial Professionals?

It’s clear to see how obtaining the correct crypto asset management solutions may be extremely beneficial to individual investors. But what about the fund managers, CPAs, and the rest of the financial experts who work with these types of clients? Here’s why financial professionals should also join the crypto asset management bandwagon.

Your clients may already be interested in cryptocurrency. The truth is that your financial advisory clients are almost certainly already familiar with cryptocurrency.

In fact, according to a Bitwise and ETF Trends poll, the majority of advisors had been asked about cryptocurrency by their clients. It also revealed an even more interesting fact: over 70% of advisors believe their clients are already dabbling in crypto without them!

Traditional portfolio management software is, for the most part, underpowered and slow to handle the wide range of assets and speeds that modern investors need.

However, you can give the fast, accurate, and modern experience that today’s clients need with a modern crypto asset management platform.

Improve the security of your clients’ cryptocurrency assets

Cryptocurrency, as a mostly unregulated, highly decentralized, and entirely digital asset class, necessitates a little extra consideration when it comes to keeping client assets safe. When it comes to protecting client investments from outside risks, using asset management software designed particularly for managing crypto is a wonderful place to start.

In addition to utilizing the correct software, we strongly advise you to take other security precautions, such as safeguarding your office internet connection, using a firewall, establishing multi-factor authentication when possible, and speaking with a cybersecurity expert.