1. Calculate the cost basis: The cost basis is the price you paid for the cryptocurrency, including all fees and costs associated with the purchase.
2. Determine your sales proceeds: Your sales proceeds are the amount you received from selling the cryptocurrency. Make sure to subtract any fees associated with the sale.
3. Calculate your capital gain/loss: To calculate your capital gain or loss, subtract the cost basis from the sales proceeds. If the result is a positive number, then you have a capital gain; if the result is negative, then you have a capital loss.
4. Report it on your taxes: If you have a capital gain, you will need to report it on your taxes and possibly pay taxes on it. If you have a capital loss, you may be able to use it to offset any capital gains and reduce your tax liability.