Cryptocurrency is a form of digital currency that operates on cryptography to make transactions secure. It is not backed by any government or central banks but instead uses decentralized control.
The benefits of cryptocurrency are that transactions can be carried out securely, anonymously, and all without a middleman between the buyer and seller. Yet these same systems can also be incredibly risky for the inexperienced user – it’s been estimated that up to one million Bitcoins have already been lost or ‘buried’ in our digital limbo.
As cryptocurrency is digital and decentralized, it is relatively easy for investors to monitor their own investment value in real-time.
Step 1: Choose a currency to track
The cryptocurrency market is still a very volatile one, and it’s not surprising that newcomers can find it hard to know which currency to track. Many investors will likely choose to follow the market leader, Bitcoin. Although this gives an immediate advantage, it also means that you are tracking a volatile currency. If you’re going to invest in Bitcoin, make sure you’re aware of the risks before doing so. Tracking cryptocurrencies is as easy as finding a cryptocurrency price index.
Step 2: Set up a personal wallet
The next step is to create a personal wallet for your newly chosen cryptocurrency. If you are completely new to Bitcoin, it might be simpler to just buy some of the currency at a currency exchange and then hold onto it in your personal wallet. You will still want to track the value of your own investment – that’s why you’re here!
Step 3: Find a reputable exchange
There are hundreds of exchanges out there that let you trade cryptocurrency. You won’t be able to get a premium rate on your initial trade (if you choose to start off small), but you can monitor the price of the currency once it is in your wallet and increase or decrease your investment as needed.
Step 4: Tracking cryptocurrency value
The best way to track the value of your cryptocurrency is to use a third-party exchange. Most exchanges will let you view the value of your investment in real-time and will allow you to do a variety of other transactions, such as buying Bitcoin with a credit card or selling it at a profit.
These exchanges have their own pricing algorithms, which are updated throughout the week and hour.
Conclusion: The importance of monitoring cryptocurrency value
Knowing the value of your cryptocurrency investment is important, even if you’re planning on just holding onto it for a while. With so many digital currencies around, the market is still very volatile, and a significant part of cryptocurrency value can be lost in the space of one hour.
If you are planning on trading with your currency, then you need to be even more aware of the changing value – otherwise, it can be easy to make a profit that is smaller than you really wanted.
The safest way to keep an eye on your investment value is to use a third-party service that allows you to monitor it in real-time – this will also let you see whether others in the market have seen any changes.