Cost Basis vs Hard Fork (tax context)

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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Hard Fork (tax context)
intermediate
fundamentals

A permanent blockchain protocol split that distributes new cryptocurrency tokens to existing holders, treated by the IRS as ordinary taxable income at fair market value upon receipt and dominion.

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