![]() You should select Account > New Account and create the number of Investment accounts you want for this purpose. This is important because it will be difficult to move securities between investment accounts later without using the buy/sell functions, which will interfere with tracking your cost basis. ![]() To create a cryptocurrency as a security in Moneydance, first decide how you want to organize your cryptocurrency accounts. It can be cumbersome to use cryptocurrencies as currencies in this setup, as one would have to 'sell' the cryptocurrency first, then make the corresponding purchase.This method likely mimics how most people are buying and holding cryptocurrencies through one or two exchanges, which can be set up here as separate investment accounts.You can use most of Moneydance's investment reporting tools, such as tracking capital gains.That being said, this is in flux and varies based on your country, so you should consult with your tax professional. It also seems like various jurisdictions are moving towards treating cryptocurrencies more like a security than a currency for regulatory and tax purposes. This is somewhat less intuitive, however in practice may be much closer to how most people are actually using cryptocurrencies: not as a currency to exchange for goods and services, but as an asset to buy with the expectation it will increase in value (similar to a standard security on a stock exchange). If it does match, you will need to choose a slightly different ticker symbol to make sure you don't pull data from a different security or currency into your cryptocurrency.If the extension doesn't return an error, make sure that the currency ID you have given the cryptocurrency does not match an existing security or currency.Note that the "Quotes and Exchange Rates" extension will likely return an error for your cryptocurrency. You may need to manually enter the exact rate of exchange for these transactions. This same process can work for sending funds in the other direction, or between cryptocurrencies themselves if you make a direct exchange. Once your accounts are set up, you can enter your purchases of cryptocurrencies as a transaction from your bank account (in normal currency) to your asset account (in cryptocurrency). Since an account has to be associated with a specific currency, you will have to repeat this step for each cryptocurrency.įor organizational purposes, if you need to create multiple accounts, you can set them up as sub-accounts of one larger cryptocurrency Asset account. Creating currencies are outlined in this article.Īfter creating the currency, you should create an Asset account to hold your cryptocurrency. To create a cryptocurrency as a currency in Moneydance, set it up as you would any other currency. You can't use most of Moneydance's investment reporting tools for currencies.It's easy to see the value of your cryptocurrencies relative to each other and state-issued currencies.You can track and make purchases with your cryptocurrencies just as any other currency in Moneydance.This is perhaps most intuitive since most cryptocurrencies of course have put themselves forth as actual currencies. The steps to set up both options are detailed below.ĭue to the somewhat ambiguous nature of cryptocurrencies, there is no one right way to do this. ![]() There are two general options for tracking cryptocurrencies in Moneydance: setting them up as a currency, or setting them up as a security in an investment account. ![]() However, you can set up cryptocurrencies manually, and update their values manually at any frequency you would like. Moneydance can be set up to track cryptocurrencies, such as bitcoin.Ĭurrently, Moneydance cannot automatically update cryptocurrency exchange rates with its source for securities and currencies. Cryptocurrency markets are also fairly decentralized and volatile, producing different values on different exchanges. Solution home Moneydance Documentation Currency and VAT/GST Bitcoin and other Cryptocurrencies ![]()
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