Investing in digital assets can be incredibly rewarding, but managing them is a pretty complex process for newbies and well-experienced traders.
Crypto asset management is the skill of implementing the right skills and models to maximize your returns or overall valuation.
What Does Crypto Asset Management Actually Mean?
In simple terms, crypto asset management refers to purchasing and selling out assets as investments and tracking your portfolio to see overall growth in the value of your assets.
Well, asset management is not a newly introduced concept. It is an exercise that lets you manage, grow your assets, and diversify your portfolio. It is all about tracking, purchasing, and selling coins to reduce or balance risks and make some profit.
All in all, crypto asset management is just a simple process of implementing the exercise on digital assets on the blockchain, such as NFTs, Ethereum, and Bitcoin! Being a new asset class, these have showcased their fast and steady growth, and we’re close to hitting 60 billion US Dollars in cumulative assets in 2021.
Why Should an Individual Investor Use Crypto Asset Management?
If you happen to be an individual investor, then there are many reasons why you should use them.
#1 Maximizes the Value of Crypto Assets
A crypto asset manager will show you all your holdings and will give you insights that can help you know the current status of your investment, such as whether you are on the profit margin or not.
A crypto manager also helps you optimize and balance your portfolio, preventing total capital loss.
#2 Helps You Monitor and Make Progress
When you own crypto assets, the most important thing about it is you need to actively exercise on them and ensure all your crypt assets are heading in the right direction.
A crypto asset manager will show you the progress of your portfolio over time and will give you all the valuable information about every crypto asset you own. It will also help you figure out which crypto asset to hold and which ones sell out, ensuring that you achieve your objectives.
#3 Ensures Diversification
Diversification of the portfolio is the key in this investment world. It becomes even more crucial when you dabble in high-volatility assets like cryptos. Diversifying will spread your risks and reduce the chances of total capital loss.
A crypto asset manager will give you all the pivotal insights. It will help you advance diverse investment decisions that protect and balance your wealth.
#4 Keeps Your Aware of the Health of Your Assets
Another key role played by a crypto asset manager is that it helps you track your net worth. And calculating net worth is pretty hard as you will need to know about everything you hold, and it will get even harder as your portfolio gets diverse.
Hence, a crypto asset manager keeps you from this hustle and tracks the value of your assets to give you an exact number when calculating the net worth!
Using a crypto asset manager will give you historical and real-time market insights. And this is what regular investors lack the most.
But, using this will track your portfolio valuation, identify your strengths and weaknesses and help you become a better investor!