Cryptocurrencies are a phenomenon which has appeared more and more during the last years and is widely used by both individuals and entities. Their technological features have intrigued many, resulting in a significant growth of the number of cryptocurrencies available and an increased amount of areas of usage. More and more businesses have started using cryptocurrencies for example for investment purposes or accepting them as a means of payment. This has resulted in an urgent need of guidance from accounting standard setters to regulate how they are treated in financial statements. The result of the lack of such guidance has led to a variety of accounting treatments used in practice which have created significant challenges for preparers of financial statements. Up until recently the guidance for preparers of financial statements consisted of reports issued by the big accounting firms and recommendations from local regulatory accounting bodies. The lack of literature together with the possible consequences for the marketplace has resulted in an urgent need of guidance to avoid a patchwork of accounting treatments in the market. Furthermore, these challenges may result in possibilities of conducting earnings management or an increased information asymmetry between stakeholders and entities.   The purpose of this study is to understand and discuss the practical accounting issues and challenges related to cryptocurrencies for preparers of financial statements. The research is based on four broad themes which seek to assist the purpose by including several perspectives to the issues and challenges faced. The themes that the research is divided into are assets, revenues, disclosures and risk factors associated with cryptocurrencies. Based on these four themes the research question this research aims at answering is:   “What are the practical accounting issues and challenges for the preparers of financial statements related to cryptocurrencies?”   The empirical findings of this research suggest that there are many challenges which need to be resolved when it comes to accounting for cryptocurrencies. There are issues present in all four themes, but the main challenges which were identified revolved around asset classification, valuation, disclosures and risk factors. Furthermore, based on the empirical findings it is evident that the knowledge of practitioners is of a more practical nature while literature is more based on specific standards and paragraphs which can be applied. However, this research provides practical contributions to existing literature and includes aspects of risk consequences for accounting and financial markets at large. It is concluded that more accounting guidance is needed for cryptocurrencies to increase the usefulness of financial information and to reduce possibilities of earnings management which occur because of divergent accounting treatments.