The New Asset Class: Digital Wealth

As of 2026, cryptocurrency is no longer "magic internet money." For many, it's a core component of their Net Worth. However, its extreme volatility (swings of 10-20% in a day) makes it a challenge to track alongside stable assets like real estate.

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Framework for Crypto Reporting

To get a realistic view of your digital wealth, you must avoid "Peak Pricing Bias."

The Three-Tier Crypto Inventory

1. Core Assets: Bitcoin (BTC) and Ethereum (ETH). Track these as high-growth, market-ready assets.
2. Yield-Bearing Assets: Staked tokens or liquidity provider (LP) positions. Track these for their passive income potential.
3. Speculative Assets: NFTs and smaller "altcoins." To be safe, value these at 50% of current market price or cost basis in your Net Worth Calculator.

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Security: The Ultimate Asset Protection

Since you are your own bank in crypto, your Security Measures are an asset in themselves.

• Cold Storage: Keep the majority of your net worth off exchanges.
• Privacy: Never share your private keys or precise balances publicly.
• Local Tracking: Our Net Worth Tool keeps your data on your device, which is essential for crypto privacy.

Crypto Impact on Total Portfolio

Scenario	BTC Price	Impact on Portfolio	Sentiment
Bull Market	+50%	Portfolio Outperformance	Euphoria (Avoid FOMO)
Sideways	+/- 5%	Stable Baseline	Patience
Bear Market	-50%	Significant Net Worth Drop	Opportunity (Buy the Dip)

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FAQ: Crypto and Net Worth

▶ Should I pay off my mortgage with my crypto gains? This depends on your risk tolerance. Selling a high-growth asset to pay off a low-interest liability is mathematically "safe" but could have high opportunity costs.

▶ How do I handle taxes? Always estimate your capital gains tax and list it as a Liability if you plan to sell. Your "Real Net Worth" is what you have after the taxman takes his cut.