Capital gain

A capital gain is the profit realised when an asset is sold or disposed of for more than its cost basis. For crypto, a gain may arise when a token is sold for fiat, swapped for another asset, or used to make a purchase, depending on local rules. Many jurisdictions distinguish short-term from long-term gains, sometimes taxing them at different rates.

A common misconception is that gains are only "real" once cash is withdrawn to a bank; in many tax systems a disposal itself can create a reportable gain. This entry is educational and not tax or financial advice.