Incorrect reporting of cryptocurrency transactions in Portfolio Performance

[Tomsus]

I have encountered some issues with how cryptocurrencies are reported in Portfolio Performance. Specifically, I have identified problems in two main areas:

1. Conversion from Crypto “A” to Crypto “B”:
   When converting from one cryptocurrency (Crypto “A”) to another (Crypto “B”), the software requires the transaction to be recorded as Crypto “A” → EUR and then EUR → Crypto “B”.
   This method introduces an error in calculating realized gains, as it involves a fiat currency transaction that never actually occurred.

2. Reporting Earnings from Staking, Cashback, Airdrops, or Various Earn Programs:
   For these types of earnings, the most accurate reporting method is to record the transaction as a “Purchase” at a cost of 0.01 cents.
   While this approach results in a minimal error, which can be considered negligible, it would be more convenient to have the option to classify these transactions as having a “0 cost”.

These issues affect the accuracy of the performance reporting and portfolio analysis for cryptocurrency holdings. It would be great to see improvements in these areas to better reflect the real nature of cryptocurrency transactions.

Thank you for considering these suggestions and for your continuous efforts to enhance the Portfolio Performance software.

Best regards,
Tomsus

[chirlu]

@Tomsus

For these types of earnings, the most accurate reporting method is to record the transaction as a “Purchase” at a cost of 0.01 cents.

I would rather say the most accurate method is to record a virtual dividend, followed by a buy of the same amount as the dividend.

[Tomsus]

Hi @chirlu,
as I said in this answer:

Crypto Currency Staking/Liquidity Interest Walkaround

Hi, I would like to highlight a problem with the suggested method of entering the staking proceeds as “FIAT dividends” and then recording a purchase transaction of the corresponding amount in cryptocurrency. When I enter a dividend and then record the cryptocurrency purchase, this method alters the calculation of my realized capital gains. In practice, by adding a dividend in Fiat and then purchasing a crypto, the system counts these movements as if they were separate operations, negatively in…

Recording these transactions as “Dividend” is not the best method, because it causes other inaccuracies.

[Rafa]

In fact, was is your proposal because your statement doesn’t give any hint what you’re expecting.

@Tomsus

It would be great to see improvements in these areas to better reflect the real nature of cryptocurrency transactions.

[Tomsus]

Hi @Rafa and thank you for your response.

For the first issue, it would be helpful to have a “Conversion” or “Swap” function that allows for the direct conversion from Crypto “A” to Crypto “B” without needing to go through a fiat currency.

For the second issue, it would be beneficial to introduce a function named “Crypto Earnings” or something similar. This function would allow users to record these types of transactions as a pseudo-purchase with a cost of 0.
Like a dividend, but paid directly in the selected Cryptocurrency.

I think that these are important functions for every crypto-investor.