Cryptocurrencies are digital currencies that rely on encryption to control the creation of new units and to verify transactions. They are decentralized, meaning they function without oversight from a central bank or government. All transactions are recorded on a public digital ledger called a blockchain, which provides both transparency and security. Cryptocurrency holdings are stored in digital wallets, and well-known examples include Bitcoin, Ethereum, and Litecoin.
Cryptocurrency gets its name from the use of encryption, which secures and verifies transactions. Advanced coding is applied to store and transmit data between digital wallets and public ledgers. The purpose of this encryption is to ensure both security and protection of the transactions.
By marking a currency as a "Crypto" in the Currencies section, the system is able to differentiate between traditional currencies and cryptocurrencies. This allows the user to view and modify the cryptocurrencies within the system.
In TMS, one may examine and configure crypto currencies under the Common menu
To mark a currency as Crypto, go to Treasury > Common > Currencies
Set the slider to Yes for Crypto
Here, users can also view and modify cryptocurrencies.
¶ Step 2: Crytocurrencies and Non-Cash Investments
Both cryptocurrencies and non-cash investments can be used as a form of investment and offer the potential for diversification and higher returns compared to traditional investments. However, they can also be subject to greater volatility and risk, and it's important to carefully consider the specific characteristics and potential risks of each type of investment before making a decision.
Navigate to Treasury > Investments > Non-Cash Investments
Open an existing record
Expand the Lines FastTab on a Non-cash investment
Complete the Index tabs for the following asset:
Crypto currencies
Users can perform the following tasks on a Crypto investment:
Trade
Revalue from daily prices
Calculate average cost
By performing these tasks within the system, users can get a complete picture of their cryptocurrency investments, including the trade history, market value, and cost basis. This information can be used to make informed investment decisions and manage the portfolio effectively