Cost Basis vs Staking Reward (tax context)

Quick comparison to help you distinguish these two crypto terms.

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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Staking Reward (tax context)
intermediate
fundamentals

Cryptocurrency earned by participating in a proof-of-stake network, treated by most tax authorities as ordinary income at the fair market value on the date rewards are received.

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