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Tracking + Cost Basis
Updated: Feb 2026 • Educational overview (not tax advice)

How to track crypto transactions for taxes (without losing your mind)

The #1 reason crypto tax reports look wrong is missing data: a forgotten exchange account, a wallet not connected, or transfers that don’t match. Use this checklist to build a complete history so your gains/losses make sense.

Get Help Cleaning It Up → Go to Crypto Tax Hub → Common mistakes →

Step-by-step: the tracking workflow

  1. Inventory every exchange you used (even “one time” accounts).
  2. Inventory every wallet (hot wallets, cold wallets, mobile wallets, DeFi wallets).
  3. Connect/import everything so your tool can see buys, sells, and deposits.
  4. Match transfers so wallet moves don’t look like sells.
  5. Fix unknown cost basis before exporting any forms.
  6. Review DeFi/NFT activity for correct labeling.
  7. Export CPA-ready reports and keep a copy for your records.

Two “red flags” to fix before filing

  1. Unknown cost basis: often creates inflated gains (worst case: assumes $0).
  2. Unmatched transfers: can generate fake taxable events you don’t recognize.
How to file crypto taxes → Best crypto tax software → Fix my history →

Helpful next clicks

  1. Count On Sheep reviews (who it’s for)
  2. Compare alternatives (if you’re shopping)
  3. DeFi crypto taxes (why DeFi breaks reports)
Affiliate Disclosure: This page includes affiliate links. If you use them, I may earn a commission at no extra cost to you.
Not tax advice. Educational purposes only.

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