Airdrop (tax context) vs Cost Basis

Quick comparison to help you distinguish these two crypto terms.

Airdrop (tax context)
intermediate
fundamentals

Free cryptocurrency tokens distributed to wallet addresses, treated in most jurisdictions as ordinary taxable income at fair market value on the date they are received and accessible.

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Cost Basis
beginner
fundamentals

Cost basis is the total original amount you paid to acquire a cryptocurrency position, including purchase price and any transaction fees, used to calculate profit or loss.

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