Cost basis: what it means for crypto tax
Cost basis is what an asset cost you to acquire, including any fees. It is the number your capital gain or loss is measured against when you dispose of the asset, so an accurate basis is the foundation of a correct crypto tax report.
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
If you bought 1 ETH for 2,000 plus a 10 fee, your cost basis is 2,010. Sell it later for 3,000 and your gain is 990, not 1,000, because the fee raised your basis.
Why it matters for your tax
Cost basis is the single biggest driver of an accurate tax figure. Because every disposal leans on it, a wrong basis early in your history quietly distorts every later gain that draws on it.
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
Cost basis is what an asset cost you to acquire, including any fees. It is the number your capital gain or loss is measured against when you dispose of the asset, so an accurate basis is the foundation of a correct crypto tax report.
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.