Simple but versatile digital asset bookkeeping
August 15, 2022

Simple but versatile digital asset bookkeeping

Effertz Tom | TrustRadius Reviewer
Score 10 out of 10
Vetted Review
Verified User

Overall Satisfaction with Bitwave

Pros

  • Ability to categorize taxable and non-taxable transactions.
  • Able to handle DeFi transactions.
  • Documentation support to track digital asset balances & locations.
  • Can read token transaction activity better than most wallet explorers.

Cons

  • Automation support for more alt blockchains (can still track manually).
  • Automation support for more DeFi protocols (can still track manually).
  • Bulk classification options (but it does auto-categorize transaction fees-very helpful).
I don't want to tear apart a competitor, but I have used & evaluated a number of digital asset tracking systems. The biggest issues I found with most other products is simply that the product did not correctly record transactions. Some digital transaction can involve many wallets & multiple tokens, and I found it common that only the first actions would be captures while the remaining completely ignored. This led to the token balances to be off, and it was a nightmare to try and correct because the products did not have a manual option to adjust or fix transactions. The other biggest complaint is that all token transfers were considered taxable events, and so the products would calculate capital gains as tokens were transferred back and forth between company wallets at whatever the tokens were trading at for that day. This makes proper capital gains next to impossible without the ability to mark transactions as taxable and non-taxable like Bitwave does.
Bitwave is designed for companies or high net worth individual with a significant amount of digital asset transactions & activity. It is not meant for the individual trader that has a few investments in crypto. Bitwave is really meant to be used where digital currency assets are fully utilized by the company and used for expenses, revenue, and capital investments. It most closely reminds me of Quickbooks online with its bank & credit card integration. Bitwave will produce a list of transactions, and the user goes through each transaction to link it to the appropriate account on the chart of accounts. Then my recommendation is to create a snapshot of all the company digital wallets and audit the Bitwave balance report against those snapshots to ensure that all token have been properly recorded, just like a bank reconciliation. So my recommendation is to use Bitwave if you use digital assets like a bank account and need to record the activity to a G/L.

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