Cost Basis vs Cost Basis Method

Quick comparison to help you distinguish these two crypto terms.

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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Cost Basis Method
intermediate
strategy

An accounting rule that determines which specific cryptocurrency units are considered sold during a disposal, establishing the cost basis used to calculate the resulting taxable capital gain or loss.

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