1. What Is an Account Plan?
An account plan is a system where you use your financial accounts to separate your money in categories to organize your finances more effectively.
Millions of individuals, households, self employed, and small businesses worldwide conveniently use this system to manage their money.
In this tutorial we will present an example for Dapp users.
2. Multiple Wallets on Emerald
First, let's start by explaining that Emerald supports multiple wallets. This means you can create your first wallet when you download Emerald (there are different ways of creating accounts explained in our other tutorials) and from there you can create more wallets at your convenience to manage your money in categories.
Below is an example of several wallets created using Emerald Wallet.
The cool thing is that you can actually name your wallets whichever way you want, so it is most convenient to manage your finances!
3. Example of an Active Dapp User
For example, an active Dapp user; who may be a crypto trader in decentralized exchanges, a buyer of NFTs on Ethereum Classic, a staker in the Ethereum beacon chain, and a user of some passive income Dapps; may have the following account plan:
The logic of this account plan for a Dapp user is the following:
a. Trading Account
Because trading in general involves a higher frequency of transactions and those transactions may have tax consequences in many countries, then to have a segregated trading wallet of that activity is very convenient to keep track of those movements and results.
b. ETC NFTs
To keep this asset class separated from other activity, this Dapp user buys and holds ETC NFTs in a different wallet. This is useful to better manage, view, and account for NFT trading in particular.
c. Long Term Savings
Like any individual, part of their crypto may be destined to long term savings and investment. In this wallet, our Dapp user may hold Bitcoin for the long term as a store of value.
Another benefit of this is that the tax treatment of this strategy may be different than the short term nature of the trading wallet above, so to have a segregated wallet may help in the administration and tracking of this part of the portfolio.
d. Ethereum Staking
As staking is totally different income model than trading and investment, and to measure and monitor this activity, our Dapp user may create a specific staking wallet for the Ethereum beacon chain.
e. Passive Income Account
To take advantage of passive income Dapps, and for the same reasons as expressed above, to create a separated "passive income account" wallet inside Emerald may be very convenient.
Now our active Dapp user has all of his or her accounts and their administration totally organized!
4. Watch More Examples!
For more examples of account plans that may adjust to your personal needs, please watch this video: