Yes, your approach is correct. To record a Bitcoin purchase as a business investment in QuickBooks Online, first, create an asset account by going to the Chart of Accounts, selecting Other Current Assets or Fixed Assets (depending on how long you plan to hold it), and naming it Bitcoin Investment.

Once the transaction appears in your bank feed, categorize it under this newly created account. Since Bitcoin’s value fluctuates, you may need to adjust its value periodically. To do this, create a journal entry where you debit the Bitcoin Investment account and credit Unrealized Gains/Losses, depending on whether the value has increased or decreased.

The frequency of these adjustments depends on your financial reporting needs, whether monthly or quarterly. When you sell Bitcoin, record the sale by debiting your Cash or Bank Account for the amount received, crediting the Bitcoin Investment account for its original cost, and recording any gain or loss on the sale in the Gain/Loss on Investment account.

Hope this helps!