Cost Basis vs Staking Reward (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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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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