Capital loss

A capital loss refers to the decrease in value that occurs when an asset is sold or disposed of for less than its adjusted cost base. In crypto, a capital loss may occur when a user sells a crypto asset after its market value has fallen, trades it for another asset at a lower value, or otherwise disposes of it below its cost. The loss is generally calculated by comparing the proceeds from the disposition with the adjusted cost base and related costs. 

For example, a user buys Ethereum with an adjusted cost base of $4,500 and later sells it for $4,000. The $500 difference is a capital loss before considering any applicable costs.