Crypto Accounting Glossary

An organized list of all financial accounts used by an organization to classify and record transactions in its general ledger.

The original value of a cryptocurrency asset for tax purposes, used to calculate capital gains or losses when the asset is sold or exchanged.

An ecosystem of blockchain-based financial protocols that replicate and expand traditional financial services without centralized intermediaries such as banks or exchanges.

An accounting method where every financial transaction is recorded in at least two accounts, with equal and offsetting debits and credits.

The technical standard for creating and issuing fungible tokens on the Ethereum blockchain, defining a common set of rules that all compliant tokens follow.

The price at which a cryptocurrency asset would change hands between a willing buyer and seller in an open market, used for tax reporting and accounting.

An accounting method where the oldest cryptocurrency units acquired are considered sold first, used to calculate capital gains and cost basis for tax purposes.

An IRS tax form used to report sales and disposals of capital assets, including cryptocurrency, to calculate capital gains and losses.

Transaction fees paid to blockchain validators to compensate for the computational resources required to process and record transactions on the blockchain.

The master accounting record that contains all financial transactions for an organization, organized by account and used to prepare financial statements.

A cost basis accounting method where cryptocurrency units with the highest purchase price are treated as sold first, minimizing realized capital gains.

The temporary reduction in value experienced by liquidity providers in DeFi when the price ratio of pooled assets changes compared to simply holding the assets.

A double-entry bookkeeping record that documents a financial transaction by debiting one or more accounts and crediting one or more accounts by equal amounts.

An accounting method where the most recently acquired cryptocurrency units are treated as sold first, used to calculate capital gains for tax reporting.

SEC Staff Accounting Bulletin 121, a directive that required entities custodying crypto assets to record them as both an asset and a liability on their balance sheets.

A self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predefined conditions are met.

A type of cryptocurrency designed to maintain a stable value by pegging its price to a fiat currency, commodity, or other reference asset.

The process of locking cryptocurrency in a blockchain network to support transaction validation and earn rewards, commonly used in proof-of-stake systems.