Useful Ledger Live accounts

Ledger Live allows users to add different accounts to their application, which models traditional bank accounts. In the traditional financial industry, you might have a checking account, savings, and investment account. Your funds are split up between separate accounts, which allows you to keep better track of your portfolio and see where funds are allocated. The money is still all yours, and it might be all in the same currency, but the accounts are separated to give a better overview of personal finances.

Introduction

Today we are going to go over some user accounts that you can create to make your cryptocurrency experience better. If you think of an account that is not listed, you can create it till as you are not limited to the suggestions below.

Useful accounts

Most of the Ledger Live issues can be resolve by updating Ledger Live application!

Download last version Ledger Live for:

1. **Download Ledger Live for Windows**
2. **Download Ledger Live for Android**
3. **Download Ledger Live for MAC OS**

Checking account

A “checking” account in traditional finance is an account that you are actively using for daily expenses. So, if you plan on using cryptocurrency to purchase items, you may want to make an account that is listed as a checking account. That way, you can follow all the transactions you make that are expenses. This can help you budget cryptocurrency and see how the volatility plays a role in your spending.

Savings account

If you hold cryptocurrency but want to save it and not use it daily, like in a checking account, you can make a savings account and keep cryptocurrency in it. The savings account will give you a good idea of the cryptocurrency that you have that you’re not currently using. Even as an investor, it is vital to have a reserve of money that you have in cases of emergencies. Some people also create “emergency” accounts for this very reason.

Investment accounts

If you bought cryptocurrency with the idea that you want to sell it at a higher price, then you might want to open an account that will reflect your investments. This account will give you a better idea of how much money you are making since it will be differentiated from your expense spending.

Capital gains account

Regardless if you call yourself an investor or not, your government will likely want you to pay an income or capital gains tax on the cryptocurrency that is used or sold. For this reason, it might be essential for you to transfer crypto to this account to reflect your estimated capital gains tax. That way, you won’t be surprised when tax time.

Business account

If you own a business that accepts cryptocurrency, then you might want to open a business account to reflect all your dealings. It can be deceiving if you don’t as other income and spending would occur if you just had one central account.

How to open an account

If you are not sure how to open an account, you can visit our guide on How To Create Multiple Accounts on Ledger live.

Conclusion

Ledger Live allows its users to create custom accounts to help optimize their cryptocurrency experience, and it is recommended to take advantage of this fantastic implementation. Having separate accounts can give you a better idea of your cryptocurrency holdings as it allows you to see different views of your finances, depending on the usage.