Capital Gains Tax vs Cost Basis

Quick comparison to help you distinguish these two crypto terms.

Capital Gains Tax
beginner
fundamentals

A government tax applied to the profit earned when you sell or dispose of an asset, such as cryptocurrency, for more than its original purchase price.

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Cost Basis
beginner
fundamentals

The original total amount paid to acquire a cryptocurrency asset, including purchase price and any associated fees, used to calculate taxable gains or losses upon disposal.

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