As more and more people engage with online investment - and cryptocurrency in particular - the question becomes: should you consider crypto asset management in your accounting?
Due to lockdowns and restricted mobility caused by the COVID-19 pandemic, many of us spent countless hours on media and the internet. All of which made us more aware of new means of investing. Entering the market can be intimidating and difficult - particularly for rookie traders and retail investors, unfamiliar with crypto. The extreme complexity of cryptocurrency trading deters many prospective investors and traders. But what's the solution? The solution to investors' difficulties with crypto-assets is crypto asset management platforms.
A crypto management platform can consist of these two components:
The on-premises sector's expectation is to dominate the crypto asset management market. This is due to its strong demand by big businesses, cheap cost, and internal connectivity improvements.
CAM (cloud asset management) systems manage your cloud estate, including maintenance, compliance, and asset monitoring.
"The global crypto asset management market size is projected to grow from USD 0.4 billion in 2021 to USD 1.2 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 21.5%" - ReportLinker
The increasing payments in emerging nations, the rise in venture capital investments, the necessity to preserve bitcoin assets, and the expansion of blockchain technology are projected to boost the industry.
Coinbase is one of the most popular cryptocurrency markets in the United States, with services available in over 100 countries. Coinbase is where you may purchase and sell cryptocurrencies and manage your portfolio.
Hardware wallets operate offline, making them immune to unauthorized network access. When your assets begin to appreciate, a hardware wallet may be the best location to keep them.
SoftLedger includes a cryptocurrency asset management tool that presents detailed transactional accounting, powerful financial reporting, and the ability to manage multiple wallets and entities on one platform.
Users have a real-time view of their finances, and can automatically track their realized and unrealized crypto gains and losses, including cost basis details and live market rates. They can also automatically track their crypto transactions at scale, transfer between multiple wallets and exchanges, with cost basis automatically tracked, and even add hash IDs for linking to the relevant block explorer for on-chain transactions.
Curious to see what it can do? Watch the below intro video or book a demo with us for a full look at the platform's capabilities.
A CPA with more than 10 years of varied public and private accounting experience, Ben has led many complex financial projects to successful outcomes.
Ben holds a B.S. in Accounting from the University of Maryland.