How to use it
- Use the formula below with your own figures.
The formula
Yield value = tokens earned × price at receipt.
Worked example
Rewards are often taxed when received.
Frequently asked questions
Is DeFi taxable?
Frequently yes; treatment varies widely.
Track everything?
Yes — many small rewards add up.
Tips
- Keep records of every buy, sell and swap.
- Value rewards at the price when received.
- Rules differ by country and change — confirm locally.
Key terms
- Cost basis
- What you paid, including fees.
- Capital gain
- Proceeds minus cost basis.
- Staking
- Earning rewards for securing a network.