HOW TO TRACK YOUR CRYPTOCURRENCY EXPENSES

Managing crypto funds is personal, but I want to share my method. Many people don't track their expenses or investments. It's different if someone has over $1 million compared to $10-20k. This post is for those with the latter amount.

Here's what I do. Let's say I have $10,000.

We break down the $10,000 into percentages for each area where we want to use these funds (example is simplified).

Now we record it like this:

Initial deposit for retro: 5000
Current deposit for retro: 5000

Initial deposit for NFTs: 2000
Current deposit for NFTs: 2000

Initial deposit for IRL: 3000
Current deposit for IRL: 3000

For example:

Initial deposit for retro: 5000

Expenses:
L0: $1000
ZkSync: $1500
Zora: $500
Current deposit for retro: 2000

Initial deposit for NFTs: 2000

Expenses:
Minting crap #1: $200
Minting crap #2: $100
Current deposit for NFTs: 1700

Initial deposit for IRL: 3000

Expenses:
Laptop purchase: $3000
Current deposit for IRL: 0

So, we performed an activity -> recorded the expenses -> logged the expenses under "Expenses" -> subtracted the spent amount from "Current deposit."

You can also add more categories where funds are used. For example, I add expenses for purchases/monthly payments and record how much money is spent on anti-virus software, proxies, etc.

This way, we see where the money goes, how much is spent, and we can control expenses if we see that the deposit is being depleted too quickly while few projects are completed. In such a case, we can stop in time, reduce spending on activities/number of accounts, so as not to invest too much in one project.

Retro drops: 50% - $5k
NFTs: 20% - $2k
IRL: 30% - $3k