Cost Basis Breakdown

Definition ∞ Cost Basis Breakdown is a detailed accounting of the original price paid for an asset, including any associated fees or adjustments, for each individual purchase. In cryptocurrency, this helps investors determine their profit or loss for tax purposes and assess the performance of their holdings. It provides a granular view of investment acquisition costs.
Context ∞ For digital asset investors, a cost basis breakdown is vital for accurate tax reporting and financial planning, especially given the volatility of cryptocurrency markets. News often highlights the complexities of calculating cost basis across various transactions and platforms, particularly with decentralized finance activities. Proper tracking is essential for compliance and informed investment decisions.