Definition ∞ A cost basis metric quantifies the original price or value of an asset for tax purposes, including any associated fees or adjustments. In the context of digital assets, it represents the total expenditure incurred to acquire a specific amount of cryptocurrency or a non-fungible token. This metric is essential for calculating capital gains or losses upon asset disposition.
Context ∞ Accurate tracking of cost basis metrics is crucial for compliance with tax regulations concerning digital assets across various jurisdictions. The complexity of calculating cost basis can be significant due to numerous transactions, forks, and airdrops. Debates continue regarding the most appropriate accounting methods for diverse crypto activities.
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