This is best explained with an example. Let's say you carried out these 3 transactions:

  1. Bought 2 BTC in January

  2. Bought 3 more BTC in February

  3. Sold 4 BTC in March

Here, even though you only had 1 sale transaction, you would see 2 disposals on your tax report. This has to do with the way your costs are calculated (FIFO, LIFO etc).



As your transaction count rises, this difference can get larger:

  1. Bought 3 BTC in January

  2. Traded 1 BTC for 8 ETH in February (1 disposal)

  3. Traded 0.5 BTC for 7 ETH in March (1 disposal)

  4. Traded 1.5 BTC for 15 ETH in April (1 disposal)

  5. Sold 30 ETH in May (3 disposals)

In this example, you would have a total of 6 disposals for only 5 transactions


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