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Is Crypto Asset Management The Next Big Trend?

By Ryan Luchs

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.

What is Crypto Asset Management?

Crypto asset management is a platform that helps crypto investors and their accountants manage their digital assets, whether they’re stored on an exchange or a distributed ledger (i.e. blockchain-based network). These can consist of crypto funds, cryptocurrency providers, blockchain firms, and companies that have conducted initial coin offerings.

These platforms significantly simplify the complicated world of purchasing, trading, accounting, and selling crypto assets. Not only beneficial for professional traders, but they can also ease access to crypto investments for the less-informed retail investor.

The cryptocurrency asset management industry is essentially split between custodian and wallet solutions.

The wallet management system is most popular since it secures digital assets and streamlines corporate processes. Asset managers and small financial institutions often use wallet management, and small and large financial organizations are increasingly using cryptocurrencies because wallet management has the most significant market share.

Management Platform Options

A crypto management platform can consist of these two components:

On-premise

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.

Cloud-based

CAM (cloud asset management) systems manage your cloud estate, including maintenance, compliance, and asset monitoring.

Forecast For The Market

“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.

Pros of Using a Crypto Asset Management System

  • The software is simple to use and incredibly effective.
  • Rather than needing to handle several accounts and wallets, crypto management systems are making the process easier.

Essential Tools for Crypto Asset Management

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.

What Is Cost Basis for Crypto? (And How to Calculate It)

Crypto Tax Software: How To Tax For Crypto Gains and Losses

QuickBooks Crypto Accounting: What You Need to Know

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