How to calculate crypto cost basis?

How to Calculate Crypto Cost Basis?

Cost basis is the amount you paid to acquire the crypto (purchase price plus any directly related fees). When you sell, you need to match the sale to the correct purchase (lot). Common methods are FIFO (first-in-first-out: the earliest purchase is deemed sold first) or specific identification if the law allows. Check current tax rules for the accepted method. Sum the cost of the lot(s) sold to get total cost basis. Gain = Sale value minus Cost basis. Keep records of every buy so you can compute cost basis for each sale.