The fact that you searched for this topic already means one good thing. You must have a head for numbers—a crucial attitude regarding any kind of trading. Tracking transactions, especially if you’re trading multiple currencies, can be confusing. You have to smartly lay down several data so that it quickly makes you understand what you want to track. This can be challenging, especially for beginners.
This article aims to help you understand how to track cryptocurrency trades and show you how to make a record. The goal is to help you set up your own, based on your needs and trading activities.
Why Should You Track?
Keeping track of your transactions not only help you assess how your trades are doing, how much you are gaining, and how much you are losing, it also allows you to be able to look back and study trends that may help you in future decisions. A good record will show you important data and help you lift trends and learnings from previous dealings. No matter how complete, if not organized, a record would only be as good as compiled loose notes. That’s why it is important to know how to track cryptocurrency trades.
How Should You Organize Your Records
To be able to organize your data, you have to check on three things:
- A platform for your record—You can use any program or application you are comfortable using. Both Excel and Sheets have an add-on that allows you to use an add-on to monitor Crypto Finance data.
- What do you want to monitor—You should set what do you want to watch. For example, do you want to see your assets in bitcoin, or do you want to monitor them in dollars? Then set essential data to keep track of the current price of the cryptocurrency, market value, etc.
- Develop a system for plotting your values—You should develop a set-up where your charts can reflect basic info you want to monitor.
Platform To Record
There are many applications out there that you can use, but these may be expensive and require you to pay fees for specific add-ons. Why spend if you can utilize free applications like Google Sheets. These types of applications can help you integrate the price monitoring of the crypto market in your records. For those who will use Google Sheets, follow these steps to incorporate the price monitoring in your worksheets. This will allow you to conveniently track the price of different currencies you are interested in and monitor them in real-time. These work well because the API (or Application Programming Interface) used on this market cap website is the same API the Google Sheets and Excel uses. This means that the application’s program to hold data into tables is the same interface used by the applications.
CryptoFinance on Google Sheets
Follow these steps to use the CryptoFinance add-on:
This strategy involves trading that relies on small price movements. To be successful with scalping, you must be able to quickly identify which crypto assets to buy and sell during the day. Trading faster will improve your chances of making profits. This strategy works on the idea that small percentage gains are better than large percentage losses.
- First, you’ll need a Google account to create a file.
- Open Sheets in Google Drive. Create and save a new file.
- Once you have set your spreadsheet, locate the add-on tab on the file.
- Open it, then click Get Add-Ons.
- Use the Search toolbar to look up Crypto Finance
- Click the “+Free” button on the upper right corner to install the add-on.
- A new window will pop out asking you to choose the account where you want to enable the add-on.
- Select an account; then, you will be directed to a page asking for permissions to allow the add-on use. These are non-intrusive permissions. Just click the “Allow” button.
- Once finished, check if the add-on was successfully installed. Click “Add-Ons,” then “Manage add-ons” and check the box “Use in this document.”
What to Monitor?
For beginners, you may be trading only a few kinds of currencies. You may want to just record what you spend from fiat money to digital currencies and trades from one currency to another. The essential data would include the date, currency, quantity, price per coin, and notes on the transaction. You have to be aware of these things when looking for ways on how to track cryptocurrency trades.
You may want to organize your balances in a more sophisticated way, especially for those who engage in multi-currency trades. You should determine if you’re going to monitor your assets in digital currency or dollars. Here are some examples of data that you may want to include in your table:
– They are charted in different denominations, one in dollars (green) and bitcoin (orange).
– Each chart presents data on:
- Current price of the cryptocurrency (linked from an online source)
- Market value—price x coins that you have
- Total cost—how much you paid for them
- P/L—cost minus the market value
- %returns—P/L divided by cost
Developing a System of Input
You can maximize the functions of spreadsheet applications in making your records easier to understand. For example, you can use color-coding to mark the currency your chart represents. Some people list their balances group according to the crypto wallets they have. Then under each wallet are the separate balance of the cryptocurrencies they have. For others, they want to monitor how much they have for each currency. So they list according to currency, and under each crypto coin is the list of the wallet holding them. A clear system will be helpful on how to track cryptocurrency trades. Discover more cryptocurrency trading tips here!
Keeping an organized tab can help you keep an eye on your trade wins and losses. This will help you improve your strategy and look for ways to increase your returns. I hope we were able to answer your question on how to track cryptocurrency trades. Good luck with your trades!