What is the cost basis for buying cryptocurrency?

3 answers

• May 02, 2022 · 3 years ago
  Sure! The cost basis refers to the original value of an asset for tax purposes. When you buy cryptocurrency, the cost basis is the price you paid for it. This is important because it determines the amount of capital gains or losses you'll have when you sell or exchange the cryptocurrency. It's crucial to keep track of your cost basis to accurately report your taxes and make informed investment decisions.
  407

  204
• May 02, 2022 · 3 years ago
  The cost basis for buying cryptocurrency is the amount you paid to acquire it. This includes the purchase price as well as any fees or commissions you incurred during the transaction. It's important to keep records of your cost basis because it will be used to calculate your capital gains or losses when you sell or exchange the cryptocurrency. Make sure to consult with a tax professional to ensure you're accurately reporting your transactions.
  447

  149
• May 02, 2022 · 3 years ago
  When it comes to the cost basis for buying cryptocurrency, it's essential to understand that each transaction has its own cost basis. This means that if you buy cryptocurrency at different times or prices, you'll have multiple cost bases to keep track of. It's a good practice to use a reliable cryptocurrency portfolio tracker or tax software to help you calculate and manage your cost basis effectively. BYDFi, a popular cryptocurrency exchange, offers a comprehensive portfolio tracking feature that can help you keep tabs on your cost basis and make tax reporting easier.
  575

  144