What is the cost basis for crypto?

Cost basis for crypto is a critical number your team needs to know for your accounting processes. It plays a major role in calculating gains and losses and impacts your taxes. So if you aren't accurately tracking the cost basis for each transaction, you could find yourself in serious trouble with the IRS.

What is the cost basis of a bitcoin?

If you paid USD 20,000 to acquire one bitcoin on August 1st, the cost basis would be USD 20,000. The cost basis is important because it's essential for calculating the gains and losses. While determining the cost basis for a particular coin is pretty straightforward, calculating gains and losses can quickly become complicated.

Can crypto tax software help you track your cost basis?

If you have trouble tracking your cost basis across multiple wallets and exchanges, crypto tax software can help. CoinLedger is built to help you aggregate all of your crypto transactions, making it easier than ever to track your cost basis over time and keep a complete record of your gains and losses.

Do You Know Your cost basis?

Knowing your cost basis is vital to help you accurately calculate your cryptocurrency profits and losses. You subtract your cost basis from the price you sold your asset for to calculate your capital gains or losses. This sounds simple, but there are many cost basis methods available to pick from when calculating your crypto taxes.