Understanding the Different Cryptocurrency Transaction Types

In cryptocurrency, there are a number of different transaction types: mined, transfers and dispositions. In this video, we explain how we differentiate them in NODE40 Balance.

Mined Transactions are an incoming transaction without an input, meaning the asset is a newly generated token.

Transfers are funds you move from one of your accounts to another (that you own). An example would be wallet to wallet or wallet to exchange. When a transfer out happens, the cost basis must be carried forward and the gain or loss is limited to the transaction fee.

Dispositions are when assets are exchanged for another type of asset. For example: Bitcoin to USD.