Choosing the right set of tools to manage your crypto holdings is hugely important for all DeFi investors. A typical portfolio of an avid DeFi user may contain hundreds of different digital assets, positions, stakes, and more. Understanding how to navigate this complexity and achieve consistent results is crucial for the long-term success of your investment activities.
The current landscape of the DeFi sector does not afford any relaxation to investors. A relatively recent category of liquid staking protocols that allow users to receive staked versions of their tokens and keep holdings usable has over 200 platforms with a combined TVL of over $59 billion. In total, there are over 5,000 tracked decentralized finance applications and thousands of various tools to interact with popular protocols.
Such diversity allows users to apply their creativity to the investment process and build unique portfolios. However, managing hundreds of positions on multiple protocols can be a tedious and difficult task even for seasoned veterans.
We can split all available instruments into several categories. Here are the types of portfolio management tools you can use in the DeFi ecosystem:
A combination of these instruments creates a solid suite for any DeFi investor interested in having the full picture of their holdings and managing their portfolio as efficiently as possible. Note that you should focus on instruments that are designed to work well across a large number of ecosystems. Cross-platform integration is essential due to the sheer number of different investment opportunities in the decentralized finance sector.
It is also a good idea to work with services that provide financial advice. According to the industry survey, over 65% of all crypto investors use advisory services and over 96% of all surveyed financial advisors have recently received inquiries about cryptocurrencies or DeFi investments. Platforms like Rivo provide novel investment solutions and offer unique insights generated by industry-leading experts. Using such services is also quite useful.
With the rich selection of available tools, it can be hard to pick something that works well for your portfolio. However, some trackers have strong community support and are popular. We will talk about some useful and reliable tools that you can use to manage all sorts of digital assets and investments.
Here are these tools in no particular order:
The latter option is good for people who want to have positions that pay different risk premiums. For instance, investing in the VIRTUAL-cbBTC pool on Aerodrome through Rivo yields 60.2% but the risk is quite high. On the other hand, you can use Pendle pools like the Syrup USDC Fixed Yield option with a 19.6% APY and a very low level of risk. If you need some reliable risk assessment tools, it is a good idea to work with this platform.
Note that we encourage our readers to do their own research and avoid following any advice blindly. We suggest these platforms as examples of reliable tools that can be used effectively in most cases. However, you should seek options that work for your particular case.
The variety of capital allocation methods in the DeFi ecosystem is simply staggering. Various pools alone form a massive selection pool with over 11 thousand entries. Now, add staking, CDPs, RWA, and other possible market positions on top and you have an ocean of opportunities where newcomers come to drown.
You need these efficient portfolio trackers, data aggregators, and advisory services to navigate your way through the world of DeFi and make informed investment decisions.
Product updates, DeFi tutorials and insights from our community
