One thing that most people can agree on is the volatility of the crypto market. With thousands of coins out there and lots of sentiment, it is hard to get a grasp. If you are invested in these coins, it is of essence to have the latest information available. This especially became evident after Elon Musk sent out Dogecoin-related tweets on Twitter, which led to a bull run on the coin. This is not an isolated event, and many coins are being pumped up. On the other hand, lots of coins also go down due to sentiment. This makes the use of a cryptocurrency tracker essential.
What is a cryptocurrency tracker?
In essence, a crypto tracker is similar to a wallet: it shows the value you have and combines it with relevant market information. But, there are some important differences to note. Generally speaking, we can divide the ‘storing’ of your assets between wallets and exchanges. When you store it on an exchange, it is residing in a wallet from the exchange itself. Within their database, they allocate the funds to you. This is different from a wallet, where you are the owner of the coins. Both have pros and cons, but in terms of security, a wallet has a preference. But there is more to it.
Keep your wallets and stake
When you use a tracker, you can integrate with exchanges through API and with wallets through the use of a Public Key. For wallets, this is a safe method, as you do not share any confidential information. The tracker simply adds up all the transactions on a blockchain (i.e., like a ledger) and shows the value that is allocated to the Public Key.
From a financial perspective, this is a very interesting construction. You can combine all your holdings into a single overview, no matter the compatibility of your wallet. When it comes to consensus mechanisms, you are still able to participate. This means that your stake in the network will continue to grow, allowing you to see your assets grow right from the tracker. The same holds to other staking mechanisms in place being offered by wallets.
Delta is a leading example
A leader in the field of crypto trackers is Delta. This company is offering an all-in crypto tracker that also combines traditional assets such as stocks and bonds. You can integrate all of these through APIs and Public Keys and have a real-time overview. Next to that, Delta shows the latest news related to your holdings and the market in general. By setting up push notifications, you can receive the latest market trends per your needs. This allows you to become a better trader, as you will be informed on major market changes and coin-changing news.
Trackers are currently also exploring means to directly conduct transactions in coins and assets through the use of APIs. This will become possible with the use of brokers and exchanges, but will not yet be an option for wallets and decentralized exchanges.