Investor Cost Aggregation

Definition ∞ Investor Cost Aggregation is the process of combining all expenses incurred by an investor across various transactions or holdings to determine the total cost basis of their investment. This includes purchase prices, trading fees, and any associated network costs. Accurate aggregation is essential for calculating profits, losses, and fulfilling tax obligations in the digital asset market.
Context ∞ Investor cost aggregation presents particular challenges in the digital asset space due to the variety of transaction types and fluctuating gas fees. Discussions frequently address the complexity of tracking costs across multiple wallets and decentralized exchanges. Future solutions will likely involve more sophisticated accounting software and standardized reporting tools to simplify compliance for individual and institutional investors.