Cryptocurrency Portfolio Tracking with Beancount.io
Managing a cryptocurrency portfolio across multiple exchanges, wallets, and DeFi protocols can be challenging. This comprehensive guide shows you how to set up and maintain accurate cryptocurrency portfolio tracking using Beancount.io's powerful plain-text accounting system.
Why Traditional Portfolio Trackers Fall Short
Common Problems with Crypto Portfolio Tools
- Limited Exchange Support: Many tools don't support all exchanges or DeFi protocols
- Inaccurate Cost Basis: Simplified FIFO/LIFO calculations miss complex scenarios
- Missing Transactions: API limitations and manual entry gaps
- No Customization: Fixed categories and reporting structures
- Privacy Concerns: Sharing API keys with third-party services
- Vendor Lock-in: Proprietary data formats and limited export options
Beancount.io Advantages
- Complete Control: Own your data in plain-text format
- Unlimited Customization: Create any account structure you need
- Precise Cost Basis: Lot-based tracking with specific identification
- Multi-Protocol Support: Handle any exchange, wallet, or DeFi protocol
- Transparent Calculations: See exactly how numbers are computed
- Future-Proof: Plain-text format ensures long-term accessibility
Setting Up Your Crypto Portfolio Structure
Basic Account Hierarchy
Start with a comprehensive account structure that reflects your crypto ecosystem:
; Exchange Accounts - Organized by Platform
1970-01-01 open Assets:Crypto:Coinbase:USD
1970-01-01 open Assets:Crypto:Coinbase:BTC
1970-01-01 open Assets:Crypto:Coinbase:ETH
1970-01-01 open Assets:Crypto:Coinbase:ADA
1970-01-01 open Assets:Crypto:Binance:USD
1970-01-01 open Assets:Crypto:Binance:BTC
1970-01-01 open Assets:Crypto:Binance:ETH
1970-01-01 open Assets:Crypto:Binance:BNB
1970-01-01 open Assets:Crypto:Kraken:USD
1970-01-01 open Assets:Crypto:Kraken:BTC
1970-01-01 open Assets:Crypto:Kraken:ETH
; Wallet Accounts - Organized by Type
1970-01-01 open Assets:Crypto:Wallet:Ledger:BTC
1970-01-01 open Assets:Crypto:Wallet:Ledger:ETH
1970-01-01 open Assets:Crypto:Wallet:MetaMask:ETH
1970-01-01 open Assets:Crypto:Wallet:MetaMask:USDC
1970-01-01 open Assets:Crypto:Wallet:TrustWallet:BNB
; DeFi Protocol Accounts
1970-01-01 open Assets:DeFi:Uniswap:ETH-USDC-LP
1970-01-01 open Assets:DeFi:Compound:cUSDC
1970-01-01 open Assets:Staking:Ethereum:ETH
1970-01-01 open Assets:Staking:Cardano:ADA
; Income Tracking
1970-01-01 open Income:Crypto:Staking:ETH
1970-01-01 open Income:Crypto:Staking:ADA
1970-01-01 open Income:Crypto:Mining:BTC
1970-01-01 open Income:Crypto:Airdrops
1970-01-01 open Income:Crypto:DeFi:Yield
1970-01-01 open Income:CapitalGains:Crypto
; Expense Tracking
1970-01-01 open Expenses:Crypto:Fees:Trading
1970-01-01 open Expenses:Crypto:Fees:Network
1970-01-01 open Expenses:Crypto:Fees:Withdrawal
Commodity Definitions with Metadata
Define your cryptocurrencies with rich metadata for better tracking:
1970-01-01 commodity BTC
name: "Bitcoin"
asset-class: "cryptocurrency"
sector: "digital-currency"
price-source: "coinbase"
website: "https://bitcoin.org"
1970-01-01 commodity ETH
name: "Ethereum"
asset-class: "cryptocurrency"
sector: "smart-contract-platform"
price-source: "coinbase"
website: "https://ethereum.org"
1970-01-01 commodity ADA
name: "Cardano"
asset-class: "cryptocurrency"
sector: "smart-contract-platform"
price-source: "binance"
website: "https://cardano.org"
1970-01-01 commodity DOT
name: "Polkadot"
asset-class: "cryptocurrency"
sector: "interoperability"
price-source: "kraken"
website: "https://polkadot.network"
Multi-Exchange Portfolio Tracking
Recording Purchases Across Exchanges
Track the same cryptocurrency across different exchanges with precise cost basis:
; Bitcoin purchases on different exchanges
2024-01-15 * "Buy BTC on Coinbase"
Assets:Crypto:Coinbase:BTC 1.0 BTC {45000.00 USD}
Assets:Crypto:Coinbase:USD -45000.00 USD
Expenses:Crypto:Fees:Trading 50.00 USD
Assets:Crypto:Coinbase:USD -50.00 USD
2024-01-20 * "Buy BTC on Binance"
Assets:Crypto:Binance:BTC 0.5 BTC {46000.00 USD}
Assets:Crypto:Binance:USD -23000.00 USD
Expenses:Crypto:Fees:Trading 25.00 USD
Assets:Crypto:Binance:USD -25.00 USD
2024-01-25 * "Buy BTC on Kraken"
Assets:Crypto:Kraken:BTC 0.8 BTC {44000.00 USD}
Assets:Crypto:Kraken:USD -35200.00 USD
Expenses:Crypto:Fees:Trading 30.00 USD
Assets:Crypto:Kraken:USD -30.00 USD
Cross-Exchange Transfers
Track transfers between exchanges while maintaining cost basis:
2024-02-01 * "Transfer BTC from Coinbase to Ledger"
Assets:Crypto:Coinbase:BTC -0.5 BTC {45000.00 USD}
Assets:Crypto:Wallet:Ledger:BTC 0.5 BTC {45000.00 USD}
Expenses:Crypto:Fees:Withdrawal 0.0005 BTC {45000.00 USD}
Assets:Crypto:Coinbase:BTC -0.0005 BTC {45000.00 USD}
Arbitrage Opportunities
Track arbitrage trades between exchanges:
2024-02-10 * "Arbitrage: Buy ETH on Binance, Sell on Coinbase"
; Buy on Binance
Assets:Crypto:Binance:ETH 10 ETH {2500.00 USD}
Assets:Crypto:Binance:USD -25000.00 USD
Expenses:Crypto:Fees:Trading 25.00 USD
Assets:Crypto:Binance:USD -25.00 USD
; Sell on Coinbase (higher price)
Assets:Crypto:Coinbase:ETH -10 ETH {2500.00 USD}
Assets:Crypto:Coinbase:USD 25800.00 USD
Expenses:Crypto:Fees:Trading 30.00 USD
Assets:Crypto:Coinbase:USD -30.00 USD
Income:Crypto:Arbitrage 745.00 USD
Advanced Cost Basis Management
Lot-Based Tracking
Beancount.io's lot-based system provides precise cost basis tracking:
; Multiple purchases at different prices
2024-01-01 * "BTC Purchase Lot 1"
Assets:Crypto:Coinbase:BTC 1.0 BTC {40000.00 USD}
Assets:Crypto:Coinbase:USD -40000.00 USD
2024-02-01 * "BTC Purchase Lot 2"
Assets:Crypto:Coinbase:BTC 1.0 BTC {45000.00 USD}
Assets:Crypto:Coinbase:USD -45000.00 USD
2024-03-01 * "BTC Purchase Lot 3"
Assets:Crypto:Coinbase:BTC 1.0 BTC {50000.00 USD}
Assets:Crypto:Coinbase:USD -50000.00 USD
Specific Identification Method
Sell specific lots for optimal tax management:
; Sell highest cost basis lot first (tax loss harvesting)
2024-04-01 * "Sell BTC Lot 3 for tax optimization"
Assets:Crypto:Coinbase:BTC -1.0 BTC {50000.00 USD}
Assets:Crypto:Coinbase:USD 48000.00 USD
Expenses:Crypto:Fees:Trading 50.00 USD
Assets:Crypto:Coinbase:USD -50.00 USD
Expenses:CapitalLoss:Crypto 2000.00 USD ; Realized loss
FIFO vs LIFO Tracking
Implement different cost basis methods:
; FIFO Sale (First In, First Out)
2024-05-01 * "FIFO Sale - Sell oldest BTC first"
Assets:Crypto:Coinbase:BTC -0.5 BTC {40000.00 USD}
Assets:Crypto:Coinbase:USD 26000.00 USD
Expenses:Crypto:Fees:Trading 30.00 USD
Assets:Crypto:Coinbase:USD -30.00 USD
Income:CapitalGains:Crypto 6000.00 USD ; 52000 - 20000 = 6000
; LIFO Sale (Last In, First Out) - if using different method
2024-05-01 * "LIFO Sale - Sell newest BTC first"
Assets:Crypto:Coinbase:BTC -0.5 BTC {45000.00 USD}
Assets:Crypto:Coinbase:USD 26000.00 USD
Expenses:Crypto:Fees:Trading 30.00 USD
Assets:Crypto:Coinbase:USD -30.00 USD
Income:CapitalGains:Crypto 3500.00 USD ; 26000 - 22500 = 3500
Portfolio Performance Analysis
Price Tracking Setup
Set up automated price feeds for accurate valuation:
; Daily price updates
2024-01-15 price BTC 45000.00 USD
2024-01-15 price ETH 2500.00 USD
2024-01-15 price ADA 0.50 USD
2024-01-16 price BTC 46000.00 USD
2024-01-16 price ETH 2550.00 USD
2024-01-16 price ADA 0.52 USD
Portfolio Allocation Tracking
Use Beancount.io's reporting features to analyze allocation:
; Query for portfolio allocation by asset
SELECT
account,
sum(position) as balance,
value(sum(position)) as market_value
WHERE account ~ "Assets:Crypto"
GROUP BY 1
ORDER BY market_value DESC
Performance Metrics
Track key performance indicators:
; Total portfolio value query
SELECT
sum(value(position)) as total_portfolio_value
WHERE account ~ "Assets:Crypto"
; Realized gains/losses
SELECT
sum(position) as realized_gains
WHERE account ~ "Income:CapitalGains:Crypto"
Staking and DeFi Integration
Staking Rewards Tracking
Record staking rewards with proper income recognition:
2024-01-31 * "ETH Staking Rewards - January"
Assets:Staking:Ethereum:ETH 0.08 ETH {2500.00 USD}
Income:Crypto:Staking:ETH 200.00 USD
2024-01-31 * "ADA Staking Rewards - January"
Assets:Staking:Cardano:ADA 25 ADA {0.50 USD}
Income:Crypto:Staking:ADA 12.50 USD
DeFi Yield Tracking
Track complex DeFi positions:
2024-02-01 * "Uniswap LP Position"
Assets:Crypto:Wallet:MetaMask:ETH -10 ETH {2500.00 USD}
Assets:Crypto:Wallet:MetaMask:USDC -25000 USDC
Assets:DeFi:Uniswap:ETH-USDC-LP 100 UNI-V2-ETH-USDC {500.00 USD}
2024-02-28 * "Uniswap LP Rewards - February"
Assets:Crypto:Wallet:MetaMask:UNI 50 UNI {8.00 USD}
Income:Crypto:DeFi:Yield 400.00 USD
Automated Portfolio Management
API Integration Setup
Connect with exchange APIs for automated data import:
# Example configuration for exchange API integration
exchanges:
coinbase:
api_key: "your_api_key"
api_secret: "your_api_secret"
passphrase: "your_passphrase"
binance:
api_key: "your_api_key"
api_secret: "your_api_secret"
Automated Reconciliation
Set up automated balance verification:
; Balance assertions for automated verification
2024-01-31 balance Assets:Crypto:Coinbase:BTC 2.5 BTC
2024-01-31 balance Assets:Crypto:Binance:ETH 15.0 ETH
2024-01-31 balance Assets:Crypto:Kraken:ADA 1000.0 ADA
Price Feed Automation
Configure automated price updates:
; Price feed configuration
plugin "beancount.plugins.auto_accounts"
plugin "beancount.plugins.forecast"
; Automated price fetching
2024-01-01 custom "price-source" BTC "coinbase"
2024-01-01 custom "price-source" ETH "coinbase"
2024-01-01 custom "price-source" ADA "binance"
Tax Optimization Strategies
Tax Loss Harvesting
Implement systematic tax loss harvesting:
; Identify positions with unrealized losses
2024-12-15 * "Tax loss harvesting - Sell ADA at loss"
Assets:Crypto:Binance:ADA -1000 ADA {0.60 USD}
Assets:Crypto:Binance:USD 450.00 USD
Expenses:Crypto:Fees:Trading 5.00 USD
Assets:Crypto:Binance:USD -5.00 USD
Expenses:CapitalLoss:Crypto 150.00 USD ; Realized loss
; Repurchase after wash sale period (31 days)
2025-01-16 * "Repurchase ADA after wash sale period"
Assets:Crypto:Binance:ADA 1000 ADA {0.45 USD}
Assets:Crypto:Binance:USD -450.00 USD
Expenses:Crypto:Fees:Trading 5.00 USD
Assets:Crypto:Binance:USD -5.00 USD
Long-term vs Short-term Gains
Track holding periods for tax optimization:
; Use metadata to track purchase dates
2024-01-01 * "BTC Purchase - Long-term hold" ^long-term-btc
Assets:Crypto:Coinbase:BTC 1.0 BTC {40000.00 USD}
Assets:Crypto:Coinbase:USD -40000.00 USD
; Sell after one year for long-term capital gains treatment
2025-01-02 * "BTC Sale - Long-term capital gains" ^long-term-btc
Assets:Crypto:Coinbase:BTC -1.0 BTC {40000.00 USD}
Assets:Crypto:Coinbase:USD 55000.00 USD
Income:CapitalGains:LongTerm 15000.00 USD
Reporting and Analytics
Portfolio Summary Reports
Generate comprehensive portfolio reports:
-- Portfolio allocation by cryptocurrency
SELECT
commodity,
sum(position) as total_units,
value(sum(position)) as market_value,
value(sum(position)) / (
SELECT value(sum(position))
FROM positions
WHERE account ~ "Assets:Crypto"
) * 100 as allocation_percentage
WHERE account ~ "Assets:Crypto"
GROUP BY commodity
ORDER BY market_value DESC;
Performance Analytics
Track portfolio performance over time:
-- Monthly portfolio performance
SELECT
year(date) as year,
month(date) as month,
value(sum(position)) as portfolio_value
WHERE account ~ "Assets:Crypto"
GROUP BY year, month
ORDER BY year, month;
Income Analysis
Analyze income sources:
-- Income breakdown by source
SELECT
account,
sum(position) as total_income
WHERE account ~ "Income:Crypto"
GROUP BY account
ORDER BY total_income DESC;
Best Practices and Tips
1. Consistent Recording
- Record transactions immediately after execution
- Use standardized transaction descriptions
- Include transaction hashes in metadata
2. Regular Reconciliation
- Verify balances weekly across all platforms
- Use balance assertions to catch discrepancies
- Monitor for missing transactions
3. Backup and Security
- Regularly backup your Beancount files
- Use version control (Git) for change tracking
- Encrypt sensitive data
4. Documentation
- Document your account structure decisions
- Maintain notes on complex transactions
- Keep records of API configurations
5. Tax Preparation
- Generate reports quarterly for tax planning
- Maintain detailed records for audit purposes
- Consult with tax professionals for complex situations
Conclusion
Effective cryptocurrency portfolio tracking requires precision, consistency, and the right tools. Beancount.io provides the flexibility and power needed to manage complex crypto portfolios across multiple exchanges, wallets, and DeFi protocols.
Key benefits of using Beancount.io for crypto portfolio tracking:
- Complete Data Ownership: Your data in plain-text format
- Precise Cost Basis: Lot-based tracking with specific identification
- Unlimited Flexibility: Custom account structures and reporting
- Tax Optimization: Advanced strategies for minimizing tax liability
- Future-Proof: Open format ensures long-term accessibility
Start with a basic setup and gradually expand your tracking as your portfolio grows in complexity. The investment in proper setup will pay dividends in accurate reporting, tax optimization, and portfolio insights.
Ready to take control of your cryptocurrency portfolio? Get started with Beancount.io today.
