In this article, I will discuss how to track bridging tokens in portfolio apps. As bridging tokens become more essential in the multi-chain crypto world, tracking them effectively is crucial for portfolio management. I’ll cover the steps, best portfolio apps, and key features that help you keep track of your cross-chain assets efficiently.
What Are Bridging Tokens?
Bridging tokens are bridging aids assets enabling value moves spanning different blockchains by acting as a lock and mint for one blockchain while creating an equivalent token on another (also known as minting) token bridging.
Wrapped Bitcoin (or WBTC) for instance allows using Bitcoin on the Ethereum network, for use in decentralized finance applications also known as DeFi. Bridging tokens help improve interoperability limits between blockchains enabling increased value, however they come with risks of smart contract bugs and liquidity wounds across frameworks.
How To Track Bridging Tokens In Portfolio Apps
Among the many blockchain portfolio tracking apps, CoinStats is one of the most popular since it supports bridging tokens across several blockchains. Below is a comprehensive tutorial on tracking bridging tokens in CoinStats.
Create an Account
Sign up for a free CoinStats account. If you already have one, log in.
Connect Your Wallets
Now, connect CoinStats to your wallets like MetaMask, Trust Wallet and hardware wallets. Be certain that the wallets hold coins on multiple chains like Ethereum, Binance Smart Chain, etc.
Add Bridging Tokens
Go to the Portfolio tab after connecting your wallets. CoinStats will, by default, bridge your tokens which include WBTC and USDT among several other tokens that you hold on different blockchains.
Monitor Cross-Chain Assets
Manage and track your bridging tokens from various networks in one unified view of your portfolio offered by CoinStats. You can view performance, manage gains/losses and see all your assets from a single place.
Set Alerts And Notifications
You can set custom alerts so that you are notified of price changes of your cryptos as well as from other set transactions, thereby ensuring you are always informed about changes in cross-chain assets.
Why Tracking Bridging Tokens Matters
Cross-Chain Asset Management
Bridging tokens facilitate movement of assets between blockchains which enables users to take advantage of multiple ecosystems. Without tracking it, understanding the scope of assets across various chains may pose a challenge.
Portfolio Accuracy
Cross-chain bridging mechanisms can change the value of an asset depending on which blockchain it is on. Tracking them ensures that cross-chain assets do not undermine a portfolio’s accuracy in reflecting an investor’s holdings.
Risk Management
Increased risks such as smart contract vulnerabilities and liquidity traps arise with cross-abn blockchain transactions. Managing exposure and understanding the risks associated with bridging activities is easier while tracking these tokens.
Optimizing Trading Strategies
Monitoring bridging tokens allows users to optimize trading strategies or take advantage of arbitrage opportunities based on performance across chains.
Transparency and Security
Tracking bridging tokens increases safety and reduces the chances of lost assets due to transactions, misplacing funds, or movement cross-chain transfers during transfers.
Portfolio Apps Supporting Bridging Tokens
1.Delta
Delta is a powerful portfolio-tracking application that accommodates various blockchains, including Ethereum, Binance Smart Chain, and Avalanche. It works flawlessly with leading wallets like MetaMask and Ledger hardware wallets.
Delta helps in token bridging control and assists in maintaining the accurate updating status and real-time performance of the assets throughout the chains. With its comprehensive features, Delta provides an effective way to manage cross-chain portfolios by giving a consolidated view of diverse crypto holdings.
2.Zerion
Zerion is a simple-to-use portfolio management application that focuses on several blockchains like Ethereum, Polygon and Binance Smart Chain. It connects with DeFi systems so that the users can view all their investments in one console.
Zerion’s support of bridging tokens such as Wrapped BTC and USDC also distinguishes it, facilitating asset management across several chains. The application offers real-time insights to monitor and optimize cross-chain portfolios, improving decision-making and unlocking further value.
3.Blockfolio (FTX)
Blockfolio, now part of FTX, is an emerging portfolio tracker app with up-to-date information on the prices of crypto assets. It tracks multiple blockchains such as Ethereum and Binance Smart Chain.
Blockfolio also allows users to monitor their assets effectively. It tracks bridging tokens like Wrapped Bitcoin (WBTC) and automatic displays them in unified portfolio along with other assets. These features make the management of cross-chain assets easier by allowing users to monitor token performance and fluctuations through a single interface.
4.CryptoCompare
CryptoCompare is a versatile portfolio tracker that covers a broad range of blockchains including Ethereum, Binance Smart Chain, and Solana. The tracker offers powerful tools for managing and analyzing crypto holdings across several networks.
Furthermore, CryptoCompare enables the tracking of bridging tokens and provides real-time data and updates for assets on different blockchains. With this functionality, users can accurately monitor the performance of their multi-chain portfolios and leverage insights that pertain to the performance of their bridging tokens across different ecosystems.
Pros And Cons
| Pros | Cons |
|---|---|
| Unified View of Multi-Chain Assets | Limited Support for All Chains |
| Tracking bridging tokens in one app gives a comprehensive overview of assets across different blockchains. | Some portfolio apps may not support all blockchain networks or specific tokens, limiting tracking options. |
| Real-Time Price Updates | Inaccurate Data Syncing |
| Portfolio apps provide real-time updates for price changes and performance of bridging tokens, ensuring up-to-date information. | Cross-chain data can sometimes take longer to sync, leading to discrepancies or delays in portfolio updates. |
| Easy Portfolio Management | Complexity in Setting Up |
| These apps simplify the process of managing multi-chain assets, consolidating all data into one platform. | Setting up bridging token tracking can require additional configuration, especially with decentralized wallets. |
| Integration with Multiple Wallets and Exchanges | Possible Security Risks |
| Many portfolio apps support integration with various wallets and exchanges, making it easier to track cross-chain assets. | Storing sensitive wallet data on apps can expose users to risks if proper security measures (like 2FA) are not implemented. |
| Automatic Tracking of Bridging Tokens | Limited Advanced Features in Some Apps |
| Popular apps can automatically detect and track bridging tokens like Wrapped BTC and USDT, reducing manual tracking. | Some apps may lack advanced features such as detailed transaction history, on-chain analysis, or tax reporting for bridging tokens. |
| Custom Alerts for Price Movements | Not Always Optimized for Large Portfolios |
| Users can set up alerts for price changes or token movements, helping them stay informed about the performance of bridging tokens. | Users with large, multi-chain portfolios might experience slower app performance or difficulty managing large amounts of data. |
Conclusion
To summarize, it can be stated that the bridging tokens in portfolio apps is an integral part of dealing with multi-chain asset tracking. These apps answer the problem of complex asset tracking providing live updates, automated portfolio management, and multi-wallet integration.
Though they have some drawbacks and risks associated with them, the advantages of centralized crypto tracking and convenience provided for new and experienced investors alike makes these tools highly effective.
