What is the cost basis of a cryptocurrency?

Cost basis is the price you pay to acquire your cryptocurrency. Knowing your cost basis is essential to accurately calculate your tax liability. How do I determine the cost basis of my cryptocurrency? In most cases, your cost basis is how much you paid to acquire your cryptocurrency.

What is a basis in futures trading?

The basis, in futures trading, is not to be confused with the terms "basis price" or "cost basis" which are unrelated to the context of basis trading. Basis trading is common across futures commodities markets where producers look to hedge the cost of production against the anticipated sale of the commodity they are producing.

Can crypto tax software help you track your cost basis?

If you have trouble tracking your cost basis across multiple wallets and exchanges, crypto tax software can help. CoinLedger is built to help you aggregate all of your crypto transactions, making it easier than ever to track your cost basis over time and keep a complete record of your gains and losses.

What is a base currency in crypto trading?

The base currency is always the first cryptocurrency in a crypto trading pair. The base currency is the base to which the other currency is compared – if we look at our EUR/USD example from earlier, euro (EUR) is the base currency. For BTC/USDT, BTC is the base currency.