How can I calculate my crypto cost basis accurately?

1 answers

• Stanley MuiruriFeb 10, 2022 · 3 years ago
  Calculating your crypto cost basis accurately is important to understand your investment performance and tax liabilities. Here's a simple method you can use: 1. Start by recording all your cryptocurrency transactions, including buys, sells, and trades. 2. Convert the transaction amounts into a common base currency, such as USD. 3. Determine the cost basis for each transaction by multiplying the amount of cryptocurrency bought or sold by the price at the time of the transaction. 4. Keep track of any transaction fees or commissions paid. 5. Sum up the cost basis of all transactions to calculate your total cost basis. 6. Adjust the cost basis for any splits, forks, or airdrops. 7. Consider using a cryptocurrency tax software to automate the calculation process. Remember to keep accurate records and consult with a tax professional for specific advice based on your jurisdiction and individual circumstances.
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