CoinLedger allows you to import a variety of transaction types into our app across thousands of unique platforms, blockchains, and dapps. For this reason, it can be confusing to understand what each transaction type means - read on through the rest of this guide for a full rundown of what transaction types CoinLedger supports and how we define each one!
Trades: Any buy, sell, or coin-to-coin trade made from one currency to another.
Fiat buys: Any transaction where fiat currency is exchanged for crypto. This is considered a trade. Ex: USD for BTC.
Fiat sells: Any transaction where crypto is exchange for fiat money. This is considered a trade. Ex: Selling BTC for USD.
Trade (Crypto-to-crypto trades): Exchanging one crypto asset for another.
Composite Swap: A trade where there are multiple crypto tokens on one or both sides of the trade. Ex: Swapping crypto for multiple NFTs.
NFT Mint: Any transaction where you use crypto to purchase an NFT. Costs incurred in a mint transaction (including fees) become your cost basis in that NFT.
Add Liquidity: Any transaction where a crypto asset is exchanged for an LP token. This occurs when you enter a Liquidity Pool, often by exchanging an asset (such as ETH, SOL, etc.) for an LP "placeholder" token.
Remove Liquidity: Any transaction where an LP token is exchanged for a crypto asset. This occurs when you withdraw from a Liquidity Pool, send back your "placeholder" token, and receive the original asset you exchanged to enter the LP token back.
Income/Other Income: Any transaction where you are earning cryptocurrency. When you earn cryptocurrency, you’ll recognize income based on the fair market value of your crypto at the time of receipt.
Interest: Interest income is income you receive from loaning your crypto. Many centralized exchanges or DeFi protocols offer interest rewards to customers who hold cryptocurrency on their platform.
Mining: Mining transactions are income you earned from mining crypto. Cryptocurrency mining rewards are taxed as income upon receipt. When you dispose of your mining rewards, you’ll incur a capital gain or loss depending on how the price of your crypto has changed since you originally received it.
Staking: Staking typically refers to either participating in a Proof of Stake blockchain’s governance process by locking up crypto as collateral, or to committing your cryptocurrency to a DeFi protocol. Usually participants are rewarded for staking their crypto on these chains or protocols. Staking rewards are considered income at the time of receipt. If you dispose of those staking rewards in the future, you’ll incur a capital gain or loss depending on how the price of your staking rewards changed since you originally received it.
Hard Fork: A cryptocurrency hard fork is a permanent divergence from the previous version of the blockchain. While soft forks maintain compatibility between the two chains, hard forks create chains that are incompatible with one another. If a certain cryptocurrency that you are holding goes through a hard fork, the new forked crypto that you receive is taxed as income.
Airdrop: In an airdrop, cryptocurrency projects freely distribute or "air drop" tokens to early users and investors' wallet addresses, usually in large quantities, for free. Airdropped cryptocurrency rewards are treated as ordinary income based on fair market value at the time of receipt.
Incoming Gifts/Gifts Received: Incoming Gifts are considered non-taxable receipts of crypto.
Deposits [non taxable]: Deposits are treated as a non-taxable self-transfers.
Outgoing Gifts/Gift Sent: Gifts are considered a non-taxable disposal of your crypto.
Casualty Loss: Casualty Losses are treated as non-deductible losses of your crypto. Casualty losses include scenarios like losing access to your wallet or sending your crypto to the wrong wallet address.
Theft: Theft losses are treated as non-deductible losses of your crypto. Theft losses include scenarios like stolen coins, hacked wallets, hacked crypto exchange accounts and more.
Investment Loss: Investment Losses are treated as deductible capital losses. This is when you dispose of your cryptocurrency for a lower price than you originally received it. In some cases, you can claim an investment loss in scenarios like a rug pull or an exchange bankruptcy. Learn more here.
Payments: Payments are considered a disposal of your crypto and trigger a capital gains tax event. Paying for a good or service with crypto is considered a taxable disposal.
Withdrawal [non taxable]: Withdrawals are treated as a non-taxable self-transfers.
Other Transaction Types
Uncategorized: If your wallet transacted with a smart contract or decentralized app that we don’t have a native integration with yet, the transaction will be classified as Uncategorized. Uncategorized transactions are treated as a non-taxable events that are not factored into report calculations, unless or until you reclassify them.
Failed (reverted): Failed or reverted transactions occur when a blockchain transaction is unsuccessful, usually due to not having enough of an asset to pay appropriate gas fees, or cancelling the transaction.