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Adjusted cost base
Finance
Moderate
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Adjusted cost base is the average cost per unit of owning a crypto asset after accounting for two or more purchases, fees, and other cost adjustments. If a user buys the same crypto asset more than once at different prices, the adjusted cost base combines those purchases into one average cost per unit. When the user later sells, trades, or disposes of part or all of that crypto, the adjusted cost base is compared with the sale price to calculate any capital gain or capital loss. The adjusted cost base is especially important for calculating any capital gain or capital losses.
For example, if a user buys Bitcoin at three different prices, the adjusted cost base calculates the average cost of the Bitcoin they hold.