Income Artist

How To Monitor And Analyze Your Crypto’s Value Over Time

Author: Jimmy Barron
Published:February 13, 2023
3 mins 54 secs

Crypto interests many investors. However, some do not know much about it.

Maybe you’ve seen some commercials featuring celebrities but don’t know about making money through this relatively new investment vehicle.

In this article, we’ll discuss monitoring and analyzing your crypto’s value over time. We’ll also discuss when you might sell your crypto coins.

First, though, let’s review the ETF concept since ETF investing attracts many crypto newbies.

What Is A Crypto ETF?

A crypto ETF is an exchange-traded fund that features crypto. An exchange-traded fund is an investment fund. You can also consider it an exchange-traded product. Investors trade ETFs on the stock exchange.

If you buy crypto, you can get some individual ones, like Ethereum or Bitcoin. You would purchase single stocks the same way.

You can also buy into a crypto ETF. Most people consider this safer. It’s like buying into a mutual fund instead of single stocks.

Monitoring cryptocurrency ETF performance over time means checking your investments every day or at least weekly. You can also ignore the ETF’s performance once you buy into it.

Some investors prefer this since they’ll become frantic checking their investment’s performance repeatedly in a 24-hour period.

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Should You Buy Individual Coins Or Look Into Crypto ETF Investing?

If you buy into a crypto ETF, some people think that’s better, since it is like buying into an index fund, just one featuring crypto.

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If you buy into an indexed crypto ETF, that’s a fund with proven securities, or crypto coins, in this case.

If you buy individual coins, you run the same risk that a single stock investor does. The coin’s value might plunge, and you’re left with pennies on the dollar if you sell at that time.

You can always hold your investment, though. Whether you bought an individual coin or put your money in a crypto ETF, the value might rise again.

Monitoring Your Crypto’s Value

If you look on either the iTunes Store or the Google Play Store, depending on what smartphone you have, you can find many different crypto tracking platforms and apps.

Some feature their own coins. Others just showcase various tools you can use for tracking.

They work in real-time. Some let you sell or trade your crypto assets. Those that do usually demand a small fee with each transaction.

Those fees might seem tiny, but if you’re getting into day trading, they can add up pretty quickly.

Checking your crypto assets can become compulsory. Some people don’t have these apps because they know they’ll constantly glance at their phone’s screen at work, while with family members, or in other inappropriate situations.

They must always know when their investment’s value increases or decreases.

How To Analyze Your Crypto’s Value

Various investors use different strategies. That’s true with crypto investors, just like with stock traders.

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Even other commodity traders have different techniques, whether you collect rare stamps or something more unusual or specialized.

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With crypto trading, you’ll probably spend time with pattern analysis. Most stock traders do this.

You’ll watch a coin’s status throughout the day, week, month, and year. You might do a year-over-year analysis. You’re tracking trends or what you feel indicates trends.

You can use advanced analytics tools to track and analyze your crypto assets, just like with stock market trading. Many traders feel they’ve developed systems that work, and they use them religiously.

Does Crypto Analysis Work?

It’s unclear whether crypto analysis works, at least regarding most people and their investments.

More individuals lose money with crypto investing than gain it, which mirrors the stock market.

An amateur trader may get lucky buying a stock and selling it hours or days later. A crypto investor might do the same thing.

Predicting what a single coin might do remains difficult, if not impossible. The market might tumble at any moment because some unforeseen factor comes to light.

You hope that won’t happen, but anything can cause a drop. A suspected company merger might also trigger a sudden price surge.

Generally, buying into crypto ETFs reduces potential volatility, like putting cash into a mutual fund.

You can still lose money, but since you’re making a larger market investment rather than a narrow one, you mitigate your potential losses.

If you feel you won’t drive yourself crazy checking your investment’s value, you might buy into an ETF.

With patience, you have a decent chance you’ll turn a profit, provided you sell at the right time.