With the Bitcoin’s growing expansion in terms of exchanges, there is an imperative of the need to have something that monitors these millions of Bitcoin exchanges, hence the Bitcoin tracker. Fundamentally, it is tasked with comparing current Bitcoin exchange rates against a particular target value such that should any drop or rise in the exchange value arise, you get notified with a short message alert.
The Bitcoin Tacker One, for instance, discloses the performance of Bitcoin exchanges by monitoring the price of a Bitcoin against the US Dollar prior to any fee. The product’s purpose is to provide a return on a daily basis that is almost equivalent to the Bitcoin’s performance across the most liquid exchanges chosen by the product owner/provider prior to any cost.
A Bitcoin trackers certificates synthetically track how Bitcoin is performing against the US Dollar before any charges or fees are billed. For instance, if Bitcoin’s price drops or rises by 0.1 percent, then the price of this Tracker will also drop or rise by the same percentage. Normally, the BTC/USD is touted to be the most liquid Bitcoin exchange market due to the thousands of transactions being conducted on the market daily.
With the advent of the Bitcoin trackers, Bitcoin investors experience little to no worries on the safety of their Bitcoins. This is because, once an investor purchases the Tracker, it is the responsibility of the guarantors and custodians to monitor the safe storage of the Bitcoins. Alternatively, those who use the digital wallets experience huge losses owing to the vulnerability of their stored Bitcoins to the ever-roaming online hackers and thieves.
Furthermore, the low amount of investment offered through the use of these Trackers makes Bitcoin an affordable investment for small market makers and takers. Even more to benefit the investor is that the holding acts as safe storage for investors who do not have to look for another digital wallet which becomes more expensive to maintain. This Tracker can also help you determine if you are making a big ask or a big bid depending on what type of exchange you are transacting.
However, these Trackers sometimes come with unidentified risks for the investors and you need to be cautious before purchasing them for your Bitcoin exchanges. For instance, if you are buying the Bitcoin Tracker One and you are in the US, you will still need to get cleared in Sweden using the Swedish Krona. Any fluctuations between the Dollar and Krona will eventually impact on your net returns.