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Alright, let's get down to the nitty-gritty of calculating your crypto taxes. It might seem daunting, but breaking it down step by step makes it much more manageable. The first thing you need to do is **track all of your transactions**. This includes every time you buy, sell, trade, or use crypto. Keep detailed records of the date, amount, and type of cryptocurrency involved in each transaction. Next, **determine your cost basis**. This is the original price you paid for your crypto. Keep track of all purchase prices, including any fees or expenses you incurred. When you sell or trade your crypto, calculate your capital gains or losses. This is the difference between the selling price (or the value at the time of the trade) and your cost basis. If you sold your crypto for more than you paid, you have a capital gain. If you sold it for less, you have a capital loss.
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