Add Bitcoin to GnuCash

To add Bitcoin as a currency in GnuCash, you cannot directly add it as a standard currency because GnuCash does not support user-defined currencies in the same way as national currencies. However, you can treat Bitcoin as a security or a commodity.

Here's how you can do it:

1.) Create a Security for Bitcoin:

Go to Tools > Security > Add to open the Security Editor.

Enter a full name for the security, such as "Bitcoin".

Use a symbol like "BTC" for the abbreviation.

Set the display symbol to "BTC".

Choose a type, such as "BTC-USD”

Set the fraction traded to as high as possible precision, such as 1/100000000, to maintain accuracy.

Enable the "Get Online Quote" option and select "Yahoo as JSON" as the data source.

2.)Create an Account for Bitcoin:

Create a new account under Assets with the type set to "Mutual Fund" or "Stock".

Set the security/currency to the Bitcoin security you created.

Configure the account to use the commodity value for the smallest fraction.

3.)Record Transactions:

When buying Bitcoin, enter the amount of Bitcoin purchased under "shares" and the price paid under "Price".

Select the "Crypto Account" under "Transfer" for the source of funds.

GnuCash will calculate the USD value and update the account accordingly.

4.) Update Exchange Rates:

Use Tools > Price Database > Get Quotes to update the exchange rates for Bitcoin using online sources like Yahoo Finance.