Capital gain: what it means for crypto tax
A capital gain is the profit on a disposal: your proceeds minus the asset's cost basis. If you dispose of a coin for more than it cost you, the difference is a capital gain that may be taxable depending on your country and your total gains for the year.
General information, not tax advice. Crypto tax rules differ by country and change over time, verify against your country's guidance or a qualified advisor.
An example
Buy 1 BTC for 20,000, sell it for 30,000, and you have a 10,000 capital gain, taxed under your country's capital gains rules.
Why it matters for your tax
Capital gains are the main thing crypto investors are taxed on. How much you owe depends on the holding period, your other income, and any allowances, so the gain itself is only the starting figure.
CryptaTax handles this automatically across your wallets and exchanges, so the concept is applied consistently without you tracking it by hand. Try the crypto tax calculator →
Related terms
See the full crypto tax glossary for every term, or the crypto tax guides for how they fit together.
FAQ
A capital gain is the profit on a disposal: your proceeds minus the asset's cost basis. If you dispose of a coin for more than it cost you, the difference is a capital gain that may be taxable depending on your country and your total gains for the year.
See the crypto tax glossary for related terms, or the crypto tax guides for worked examples. Rules differ by country, so check your country's rules.