Integration-Based Cost Tracking Explained

Blockpit employs "integration-based cost tracking", but what exactly does that mean?

This method involves maintaining separate queues for each asset within each specific Integration. Therefore, when an asset is sold from a particular integration, its cost basis is calculated exclusively based on the purchase details from that same integration.

The cost basis of an asset can also be transferred via the label Transfer to another integration.


Here's an example to illustrate:

Suppose you purchased 1 ETH for 1000€ on Bitpanda on November 1, 2022, and another 1 ETH for 1500€ on Kraken on November 15, 2022.

If you later decide to sell 1 ETH from your Kraken Integration, the cost basis, according to Blockpit's integration-based cost tracking, would be the 1500€ you paid on Kraken.


In comparison, using a universal pool approach, which is not integration-specific, the cost basis might differ. For instance, if employing the FIFO (First In, First Out) method, the cost basis for the 1 ETH sold on Kraken would be 1000€, reflecting the first ETH purchased on Bitpanda.

Blockpit does not support this approach as it may put users at risk of non-compliance with regulations.

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