I put my personal finance records in GnuCash and I would like to understand how to best account for digital currency transactions. My book is for tracking EUR transactions.
Scenario 1: I hold 1 BTC and I choose to exchange it for EUR. I believe what I should do there is credit
Equity:DigitalCurrencies by ~14000€ and credit something like
Assets:CurrentAccount by ~14000€. This would not show up as income, it's similar to any sale of any other asset I may hold.
Scenario 2: I purchase some BTC for 1000€. So I would debit
Assets:CurrentAccount, but I'm not quite sure what should be on the other side of this transaction. Adding an
Expense isn't quite right, so I guess I just credit something like
Assets:DigitalCurrencies. This would be tracked in EUR though. If I sell the same amount of BTC that I originally purchased for 1500€ do I create a split transaction here where I debit
Assets:DigitalCurrencies by 1000€ and add a 500€ line-item in
Scenario 3: Same as Scenario 2 but how do you account for partial selling of the asset?