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How To Calculate The Value Of Cryptocurrency Holdings 

Cryptocurrency, when invested correctly, can offer amazing returns. Experienced investors and traders often do fundamental and technical analyses to find the right assets to invest in. However, they also use other tools, like risk management and calculating the value of their assets.

It’s not just about finding the benefits of DASH coin or any other crypto; it’s about being smart with what you invest in and what tools you use. This article focuses on one of the most valuable tools: calculating the value of your crypto holdings.

Understanding The Basics Of Cryptocurrency Value 

Before we even dive into calculating the worth of digital assets, let’s learn what makes crypto valuable. Digital currency isn’t backed by a government or gold reserves, so there are other things that influence its price. Here are the factors that influence crypto’s value:

As you see, it’s crucial to consider all these factors before investing in cryptocurrency. There are also ways of determining cryptocurrency portfolio value that should help investors ensure they aren’t losing money. 

Identifying And Tracking Cryptocurrency Holdings

Typically, most experts recommend investors invest in several assets to diversify their portfolios. However, it means that it’s difficult for them to calculate the value of their holdings since they have several types of assets. Luckily, estimating cryptocurrency portfolio value is easier with tools and platforms that help with real-time cryptocurrency portfolio valuation. These tools are as follows:

Before choosing a tool from this list or doing your research and selecting other platforms, ensure you learn more about the chosen app. 

Calculating The Value Of Cryptocurrency Holdings

Since now you know that there are crypto calculator tools to determine the value of crypto assets, let’s learn how to use these tools. Most portfolio tools operate similarly, so here’s a simple instruction:

Adjust if necessary. Update your portfolio tracking tool if you have made new transactions. 

Overall, there are other cryptocurrency valuation methods, but the usage of portfolio tracking tools is the easiest solution. 

Tax Implications Of Cryptocurrency Holdings

One of the most critical things to keep an eye on when having cryptocurrency holdings is taxes. Typically, regulations regarding digital assets change all the time, so investors should vary whether they must file for tax returns.

Cryptocurrencies are taxed like property for tax purposes in most countries. Any profits or losses resulting from the sale or exchange of cryptocurrencies must be recorded on your tax return.

Long-term capital gains tax rates, which are normally lower than short-term rates, may apply if you hold cryptocurrencies for more than a year before selling or exchanging them. However, if you sell or swap your assets within a year of purchasing them, you may be liable to higher short-term capital gains tax rates. Thus, learn about the rules in your country to avoid legal issues. 

Strategies For Managing Cryptocurrency Holdings

Considering the notorious volatility of crypto assets, managing them is a challenging task. However, there are a few very convenient strategies that you can research and use. To name a few:

Regardless of the strategy you choose, you should feel comfortable with it. Thus, do your research and ensure you choose a method that aligns with your goals and risk tolerance. 


Any investor must calculate the worth of their cryptocurrency holdings. It enables you to monitor the performance of your portfolio, make good investment decisions, and stay on top of tax requirements. 

You may better manage your digital holdings and boost your chances of success in the extremely volatile cryptocurrency market by employing portfolio tracking tools and smart management practices. It’s also vital to use risk management tools and keep an eye on market changes. 

As for taxes, if you’re not sure you understand the topic enough, it’s best to consult a professional who can help you better understand what you should pay in tax returns. 

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