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When Is a Capital Loss Realized in a Crypto Transaction?

A capital loss is realized when an asset is sold for less than its cost basis.
Greeks.Live23.11.25

When Is a Capital Loss Realized in a Crypto Transaction?

A capital loss is realized when a cryptocurrency asset is sold, traded, or disposed of for a price lower than its original cost basis. This loss can be used to offset capital gains, reducing an investor's overall tax liability.

The loss is realized at the exact moment of the transaction, and the amount is the difference between the sale price and the cost basis.

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