When it comes to cryptocurrencies, investors routinely spend a lot of time searching for the latest coin: the one with the most exciting prospects or the one that's the most undervalued. Savvy investors also look to different cryptocurrency exchanges, applications, and services to maximize their investment potential.
But fewer individuals who invest time and money into the cryptocurrency space spend an adequate amount of time considering the impact that a digital currency price tracker has on their experience. Read on for a comparison of several of the most popular price tracking sites and services.
- A cryptocurrency price tracker monitors the current value of digital currencies, in addition to information about market capitalization, trading volume, price charts, and other types of data.
- The tracker's accuracy can have a significant bearing on an investor's decisions; because of this, investors should choose their price tracker carefully.
- Cryptocurrency price trackers should use reliable data and consistently update their data.
- CoinMarketCap is the industry's most popular and recognizable cryptocurrency price tracker; other trackers include Coinlib and Bitgur.
What Is a Cryptocurrency Price Tracker?
A cryptocurrency price tracker monitors the current value of different digital currencies and tokens. Many of these services provide historical data as well, allowing users to compare current prices against older values. Some of these services even have a tool that allows users to contrast the performance of multiple cryptocurrencies against one another.
While it may seem obvious, the accuracy of the price tracker that an investor decides to use will have a significant impact on their decisions, as well as on the timing and success of their investments. A tracker that is updated consistently and that uses reliable data in calculating its values is obviously crucial.
However, there are many other considerations to keep in mind when selecting a cryptocurrency price tracker, including the ease of customer use, the range of digital currencies and tokens covered, and the suite of extra tools and information available.
Take a look at what some of the most popular price trackers have to offer.
Price trackers provide investors with a whole range of information, including daily trading prices, market capitalization, trading volume, and price charts.
CoinMarketCap is the cryptocurrency world's "go-to price checker for as long as anyone can remember," according to Bitcoin.com. There are a number of reasons why this site is the dominant force in the field of price tracker services.
The site, which was founded in 2013, is fairly user-friendly, listing the top 100 cryptocurrencies by market capitalization. For each digital currency, there is information about its current market cap, price, 24-hour trading volume, the circulating supply, the percentage change in value over the previous 24 hours, and a seven-day price graph. For instance, Binance Coin ranked as the 10th largest cryptocurrency as of Jan. 28, 2021, with a market cap of $6.6 billion. It traded at $43.04 on that date with $523.6 million in trading volume. Roughly 90% of its supply was in circulation—154.5 million out of 170.5 million coins.
Information on individual cryptocurrencies also includes historical performance charts across various time frames, total supply, and more. Particularly useful is the breakdown of trading pairs, 24-hour volume, and the current price across different exchanges.
Investors can also compare currency prices on multiple exchanges at the same time, allowing them to determine the best option for either buying or selling. Furthermore, CoinMarketCap also lists lesser-known digital currencies (those beyond the top 100 digital currencies).
While CoinMarketCap may be the most recognizable of the cryptocurrency price trackers, there are other websites that offer competitive services as well. Even though Coinlib is a lesser-known price tracking site, it does include several useful tools beyond the basic price monitoring system.
Given that Bitcoin remains the most popular and largest digital currency by market cap, Coinlib includes a measure of "Bitcoin Dominance" at the top of its page. This figure, along with market caps and a selection of data for each individual cryptocurrency, is updated in real-time.
Coinlib also includes a comparison tool that allows users to view stats on up to four coins or tokens side by side. It also offers a price explorer that can assist investors with identifying arbitrage opportunities, in addition to the exchanges that might offer them the greatest value for their buys and sells.
Bitgur was launched in 2017 and is, according to its website, connected to a number of different exchanges. The site offers a useful filtering system, which allows users to filter cryptocurrency results according to category type, year, and technology.
This means that investors with a particular focus, like commodities-linked cryptocurrencies, are able to fine-tune their searches. Bitgur also offers its own BTC fee prediction tool, a volatility index, and a watchlist function akin to brokerage services.
The Bottom Line
While accuracy and reliability may be the two most important considerations when selecting a cryptocurrency price tracker, the list above shows that there are many other services and features to consider as well. Because the price changes of digital currencies are near-constant, it may not be feasible to look to multiple sites in the heat of a potential transaction. However, picking and choosing from the different features included in the list above is a good way to gather as much information as possible before going through with a buy or a sell.
Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns Bitcoin and Ripple.