Weighted average cost (WAVG / ACB): what it means for crypto tax
Weighted average cost pools all units of an asset into a single average cost per unit, used as the basis for every disposal. Known as the Average Cost Basis (ACB) in some countries, it is the required method in several jurisdictions.
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 coin at 1,000 and 1 at 3,000, and your average basis is 2,000 per coin, used for any sale regardless of which you sell.
Why it matters for your tax
Averaging removes the choice of which lot to sell, which is simpler but gives less room to optimise. Where your country mandates it, no other method applies.
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
Weighted average cost pools all units of an asset into a single average cost per unit, used as the basis for every disposal. Known as the Average Cost Basis (ACB) in some countries, it is the required method in several jurisdictions.
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.