Glossary

Crypto Tax Glossary

Key terms and concepts used across our crypto tax guides, to help you navigate local rules with confidence.

Tax residency

The country (or countries) that claim you as a tax resident — usually determining which crypto tax rules apply to you.

EU DAC8 crypto reporting: in-scope platforms send user and transaction data to tax authorities — not a capital-gains formula.

A tax on the value of assets you hold (including crypto) at a valuation date — common in some countries even when capital gains are limited.

Decentralized finance — on-chain protocols for lending, swapping, liquidity, and more, with complex tax event trails.

Tokens distributed for free (or near-free) to wallets — tax treatment depends on whether and when they are income.

Locking or delegating crypto to secure a network (or similar mechanism) in exchange for rewards — often taxed as income when received.

First-In, First-Out — a cost-basis method that treats the oldest units as sold first.

Whether a crypto event is taxed as income (e.g. rewards) or as a capital disposal (e.g. sale of an investment).

Profit (or loss) realized when you dispose of a crypto asset above (or below) its cost basis.

A taxable event where you part with a crypto asset — sale, swap, spend, gift, or other transfer depending on local law.

The acquisition value used to calculate gain or loss when you dispose of a crypto asset.

Free digest

Bi-weekly crypto tax & regulation notes. Educational only, not tax advice.

Explore