Back in the dark ages (let's say 2017), crypto trading was relatively simple and decentralized finance was a concept just being considered by some guys who were tired of the centralized banking system with third parties who controlled everything.
Crypto traders couldn't do much except buy and sell, and it was easy to keep track of a single coin or a small portfolio. Most owners monitored their holdings using spreadsheets or a trading journal.
Decentralized finance takes off
But those guys who came up with the idea of DeFi couldn't have predicted how wildly popular it would be. Its meteoric growth spawned thousands of DeFi projects and way more DeFi assets than a single person could ever keep track of.
Soon traders found that the complexity of their portfolios had outgrown their ability to manage their DeFi assets using a trading journal or spreadsheet. Developers scrambled to bring technology to the table that would solve the problem.
Needed: a way to track crypto assets and still have a life
It became apparent that technology needed to step up and solve the problem. Traders were being forced to spend more and more time managing their portfolios. In addition, in the fast-moving crypto space, they were often losing opportunities because there was no way of receiving real-time price alerts or other important information for making decisions.
What about the current crypto portfolio trackers?
The earliest portfolio trackers were mostly adapted from products intended for other applications rather than being specifically designed for decentralized exchanges. Although better than trying to manage manually, these portfolio trackers were often slow, complex to use, and plagued by buggy code.
A bad reputation ...
This of course didn't help crypto's reputation; the 2018 ING International Survey on mobile banking and cryptocurrency reported a perception that crypto was difficult to understand and required a specialist in preference to being an everyday finance option.
Savvy developers could see the inherent problems in the tracker app offerings. In the case of Dexfolio, the developers are traders themselves and they understood the frustration and complexity of trying to use technology that was not meeting their needs.
Uniswap joins the DeFi movement
Uniswap is at the heart of the rapidly-growing DeFi ecosystem. It is a decentralized exchange, or DEX, that has experienced fast growth to become the top protocol on Ethereum for swapping ERC20 coins.
Dexfolio has seen the need for users to easily connect to Uniswap and has already built compatibility with Uniswap into its mobile app. It also includes functionality for the Binance Smart Chain and Polygon.
The next generation of DeFi portfolio trackers
So, the next generation of tracker apps came into being. Built specifically for DeFi protocols, these apps attempt to bypass many of the problems that gave their predecessors such a bad reputation.
In the case of Dexfolio's mobile app, the focus has been as much on user experience as on the features. We believe that a good user experience is crucial; it should be easy and enjoyable to manage a DeFi portfolio. You can try it today from Dexfolio`s website.
What should you look for in a crypto portfolio tracker?
While the answer to this question will depend partly on your needs, a good crypto portfolio tracker should have the following:
Easy-to-use dashboard
This is one of the most important features of a tracker app. You should be able to see all your DeFi assets in one place, along with other important data such as historical returns, the total value of your portfolio, and your net worth.
User-friendly price alerts
When active users want to watch their DeFi tokens, it's important to receive real-time, meaningful alerts to assist with making informed decisions. Price movements can occur rapidly in the DeFi space and traders need to be ready to act on short notice.
In Dexfolio's case, users can set alerts across the entire portfolio and then modify individual coins. Tokens can also be muted at the user's discretion.
Multiple wallet connections
With so many coin options, it makes sense to connect multiple wallets. Being able to connect unlimited wallets is an advantage because it means that you're not restricted by wallet types or by the number you can connect.
Access to historical returns
Access to historical returns is important, both for making trading decisions and for tax purposes.
Supports multiple exchanges
While your portfolio might be simple, compatibility with more than one exchange or the ability to easily onboard other exchanges is a good thing. It allows flexibility for the future and the potential to grow your portfolio.
New or updated features as the industry grows
A good tracker app should offer new or updated features to keep up with changes in the industry. Ideally, it will be something that grows with the needs of the crypto community.
Which is the best crypto portfolio tracker?
There is no definitive answer to this question because there is no one-size-fits-all solution. It depends on your trading activities and the complexity of your portfolio as to what would best suit your needs. Different trackers have different features, so it's best to do your research to find one that's a good fit.
That said, any good portfolio tracker will be fast, easy to use, have the main features you need, and will provide a good user experience. It should have an easy-to-use dashboard and compatibility with at least two cryptocurrency exchanges to allow flexibility.
Track your Uniswap or other portfolios easily
Whether you hold your crypto in liquidity pools, look for trading opportunities, or simply have a portfolio of DeFi holdings, a portfolio tracker is one of the best tools for managing your DeFi activity. Choose carefully and you will reap the benefits of one that offers simplicity and ease of use, freeing up your time and making the experience a pleasure.
Written by Ben Sash
Ben Sash is the founder and CEO of Dexfolio, the company behind the industry-leading cryptocurrency tracking app.
Ben has led the development and design of digital products for over six years in his various roles with prominent e-commerce brands.
With his experience in leadership, product design, and agile development, Ben has built an unstoppable team and compiled the vision for Dexfolio to shape the industry and become a leader in its sector.