Capital gains are the taxable profit from disposing of an asset for more than its cost basis. A capital loss arises when proceeds are lower than cost basis.
In crypto, gains often arise on sales and swaps. Some countries tax crypto as capital assets; others use different regimes (e.g. wealth tax only for private investors, or income treatment for traders).
Why it matters: “capital gains” is the default mental model for investors — but your country may classify the same event differently.
Educational definition — not tax advice. Rules vary by country.
