2. List All Holdings and Where They Are Kep

A complete review starts with an accurate inventory.

Crypto assets may be held across different providers, wallets or blockchain networks. Reviewing only one account can give an incomplete view of the portfolio.

Information to Record

• Asset name and ticker.
  • Quantity held.
  • Account or wallet location.
  • Network used, where relevant.
  • Approximate Australian-dollar value.
  • Whether the holding is accessible or restricted.
  • Whether any assets are staked or otherwise committed.
  • Relevant transaction records.
  • Date and source of the valuation.

Use a consistent valuation time where practical. Crypto prices can change quickly, so values collected at different times may not be directly comparable.

Keep sensitive credentials, private keys and recovery phrases out of the portfolio review document.

3. Review Portfolio Allocation

Allocation describes how much of the portfolio is represented by each holding.

An asset’s percentage can change as its value changes, even if no purchase or sale occurs.

How to Calculate an Allocation

Asset allocation = Asset value ÷ Total portfolio value × 100

Hypothetical Example

In this example, asset A represents more than half of the crypto portfolio.

The figures are illustrative and are not recommended allocations. If values change, the percentages will also change.

4. Look for Concentration and Related Risks

Holding several crypto assets does not automatically mean that risks are spread evenly.

Different assets may be exposed to similar market conditions, technologies, providers or events.

Potential Concentration Areas

• A large share in one asset.
  • Several assets dependent on the same blockchain.
  • Multiple assets tied to a similar use or sector.
  • Assets held with one provider.
  • Exposure to a single stablecoin or issuer.
  • Holdings affected by the same market conditions.
  • A large crypto allocation relative to other investments.

Diversification can help manage some investment risks, but it does not remove the risk of loss. Moneysmart recommends considering diversification across and within asset classes.

5. Assess Liquidity and Access to Funds

Liquidity concerns how easily an asset can be bought or sold without substantially affecting its price.

A portfolio’s displayed value may not be the amount that could be received immediately after selling.

Questions to Consider

• Is there a market for the asset you hold?
  • How much trading activity is available?
  • Could the order size affect the execution price?
  • What bid–ask spread applies?
  • Are withdrawals available?
  • Are there limits, delays or restrictions?
  • Is any holding locked, staked or subject to an unbonding period?
  • What costs may apply when accessing the funds?

A quoted market price is not a guarantee that a full holding can be sold at that price.

Liquidity and withdrawal conditions may change, particularly during periods of market stress.

6. Review Fees and Other Costs

Costs can reduce the amount retained from investment activity.

Some costs appear separately in transaction records, while others may be reflected in execution prices.

Costs to Check

• Purchase and sale fees.
  • Bid–ask spreads.
  • Currency conversion charges.
  • Withdrawal fees.
  • Blockchain network fees where applicable.
  • Charges associated with staking or other services.
  • Minimum transaction fees.
  • Other account or service charges, if applicable.

Compare the provider’s current terms with your transaction confirmations.

If spreads or slippage are already reflected in actual execution prices, avoid subtracting them a second time when calculating results.

7. Distinguish Unrealised and Realised Results

An unrealised gain or loss reflects a change in the value of an asset that is still held.

A realised gain or loss generally relates to an asset that has been disposed of, although the applicable accounting or tax treatment depends on the circumstances.

Hypothetical Example

• Purchase cost: A$1,000.
  • Current estimated value: A$1,200.
  • Difference before any future sale costs: A$200.
  • Status: The asset is still held.

The A$200 difference is an unrealised gain in this simplified example.

If the asset is later sold, the actual result will depend on the sale proceeds, relevant costs and the calculation method used. A portfolio dashboard may not include every fee or transaction, so check what its figures represent.

8. Separate Deposits and Withdrawals From Investment Performance

A portfolio balance can increase because additional money was deposited.

It can also decrease because funds were withdrawn, even if the value of the remaining investments did not fall by the same amount.

Hypothetical Example

• Starting portfolio value: A$4,000.
  • Additional deposit during the period: A$1,000.
  • Ending portfolio value: A$5,200.
  • Increase in account value: A$1,200.

Of the A$1,200 increase, A$1,000 came from the deposit. Under this simplified example, the remaining A$200 reflects the portfolio’s change after accounting for that contribution.

The example assumes no withdrawals or other cash flows. It is not a percentage return calculation.

9. Review How Your Assets Are Stored

The way an asset is stored affects how it can be accessed and what risks the holder or provider manages.

Depending on the arrangement, assets may be held through a provider or in a wallet controlled by the user.

Security Questions to Ask

• Who controls the private keys?
  • What account security features are available?
  • Is multi-factor authentication enabled where available?
  • How are account recovery requests handled?
  • Are withdrawal addresses checked carefully?
  • How are recovery phrases stored and protected?
  • What happens if the provider becomes unavailable?
  • What terms apply if assets are lost or access is restricted?

Never share a private key or recovery phrase with someone claiming to provide support.

Moneysmart warns that crypto scams can involve fake platforms and attempts to obtain access to funds or account information.

10. Check for Changes to the Asset or Project

A price chart does not explain every development that may affect an asset.

A portfolio review can include checking reliable information about the asset, network or project and considering whether the original reason for holding it still applies.

Developments to Revie

• Changes to the asset’s purpose or functionality.
  • Network upgrades or migrations.
  • Token supply changes or scheduled releases.
  • Changes to project governance.
  • Security incidents or unresolved technical issues.
  • Material changes to the project team or operations.
  • Availability on relevant trading platforms.
  • Public announcements that affect access or use.
  • Risks associated with third-party services.

Use primary project information where available and compare important claims with independent sources.

An announcement is not proof that a planned development will occur or improve an asset’s value.

11. Understand Stablecoin Risks

A stablecoin is generally designed to maintain a value linked to a reference, such as a currency. That target does not guarantee that the token will always maintain its intended value.

Stablecoins can also involve issuer, reserve, redemption, platform and market risks.

Questions to Consider

• What is the stablecoin intended to track?
  • How does it attempt to maintain that value?
  • Who issues or manages it?
  • What information is available about its backing?
  • Can the holder redeem it directly, and on what terms?
  • What happens if its market price moves away from the target?
  • Where is it held?
  • What risks apply to the provider or network used?

Do not treat a stablecoin balance as automatically equivalent to a bank deposit or guaranteed Australian dollars.

12. Review Staking and Other Commitments

Some crypto holdings may be staked, lent or placed in another arrangement that affects access to the asset.

A displayed reward rate does not show every risk or guarantee a future return.

Information to Check

• Whether the asset can be withdrawn immediately.
  • Any lock-up or unbonding period.
  • Fees or commissions.
  • Risks associated with a provider or protocol.
  • Whether rewards can change.
  • Potential penalties or loss of principal.
  • How rewards and fees are recorded.
  • Applicable tax treatment.

Before using a service, read its current terms and confirm how access and risks are managed.

Do not assume a particular staking or lending feature is available through OptimCoins.

13. Check Your Transaction Records

Accurate records make it easier to understand how a holding was acquired, moved or disposed of.

Records are also useful when reviewing costs and preparing information for tax reporting.

Records to Retain

• Transaction dates and times.
  • Asset names and quantities.
  • Australian-dollar values at the relevant transaction time.
  • Purchase, sale and exchange confirmations.
  • Fees and the currency or asset used to pay them.
  • Transfers between accounts and wallets.
  • Wallet addresses or transaction references where relevant.
  • Rewards or other receipts.
  • Records of any lost or unavailable history.

Export available records regularly and check for missing transactions. The ATO advises keeping records that include the Australian-dollar value of crypto transactions.

14. Consider Tax Before Making Changes

A portfolio review may lead you to consider selling, exchanging or otherwise disposing of an asset.

For Australian investors, a crypto-to-crypto exchange can be a capital gains tax event even if no Australian dollars are withdrawn. The treatment depends on the transaction and individual circumstances.

Before Taking Action, Consider

• Whether the proposed transaction is a disposal.
  • The acquisition records available for the asset.
  • Relevant Australian-dollar values.
  • Transaction fees.
  • Previous disposals and remaining quantities.
  • Whether rewards or other receipts need separate review.
  • Whether professional tax advice is needed.

A dashboard’s displayed gain is not automatically the amount to report for tax.

A Practical Crypto Portfolio Review Checklist

How Often Should You Review a Crypto Portfolio?

The frequency of a review depends on the individual’s circumstances, the assets held and the purpose of the review.

Some investors may choose a scheduled monthly or quarterly review. Others may need to review a specific holding when an important event affects access, security or the original reason for holding it.

Events That May Prompt a Review

• A material change in portfolio allocation.
  • A security incident involving a provider or project.
  • A change to withdrawal or account terms.
  • A network migration or significant project update.
  • A change in personal financial circumstances.
  • A need to access funds.
  • Missing or inconsistent transaction records.
  • A proposed sale or exchange.
  • A change in applicable costs or conditions.

A review schedule can provide structure, but frequent checking does not require frequent trading.

Questions OptimCoins Users Should Ask

People using or considering OptimCoins Australia should check its current terms and confirm how its services and reporting apply to their circumstances.

Do not assume that a particular reporting feature, asset, withdrawal method or custody arrangement is available without checking.

Useful Questions Include

• Which assets and transaction types are supported?
  • How are assets held or secured?
  • What fees apply to purchases, sales and withdrawals?
  • How are quoted prices determined?
  • Are there minimum charges or transaction limits?
  • What withdrawal restrictions or processing times apply?
  • How are gains and losses displayed?
  • Are transaction fees included in reported performance?
  • Can transaction records be exported?
  • How are account security and recovery managed?

Compare the provider’s current terms with your account records and ask about any information you do not understand.