How does chain.report assess the disposal of cryptocurrencies?

This is how we assess, for example, the sale or purchase of cryptocurrencies in your tax report.

November 12, 2026

In Germany, cryptocurrencies count as other assets.

Here we are talking about private disposals (short holding period - income, within the meaning of § 23 Abs. 1 Nr. 2 EStG)

A disposal of cryptocurrencies occurs in the case of:

  • Payments

  • Withdrawal

  • Token swaps

  • Exchanging one cryptocurrency for another cryptocurrency

  • Impermanent Loss: Private disposals in connection with an asset-value adjustment within a liquidity pool at the time of removal due to the impermanent loss

  • Disposal of staking proceeds within the “short” holding period

  • Disposal of lending proceeds within the “short” holding period

  • Disposal of airdrop income within the “short” holding period (acquired within the meaning of § 23 Abs. 1 Nr. 2 EStG according to the BMF)

  • Disposal of security deposits (collateral) in a vault in the course of a liquidation

We calculate the corresponding income-tax-relevant income according to FIFO (First in First out). This means that we sell the oldest coins of the same asset first and use its acquisition price accordingly for the gain calculation.

This methodology takes place separately in the wallets (and sub-wallets). The tokens or coins that flowed into the wallet first are therefore taken into account and used for the disposal. Tokens or coins that are in a lending or staking process or are held in a vault are also distinguished. A sub-wallet is used for this in order to clearly distinguish the assets.

Furthermore, a distinction is made in the holding period of under (short) and over one year (long). A disposal of cryptocurrencies with a long holding period is assessed as not taxable.

Example:

  • 1BTC acquired for 10,000 € on 1 January 2022 (purchase price: 10,000 € / BTC)

  • 1BTC acquired for 20,000 € on 2 January 2022 (purchase price: 20,000 € / BTC)

  • 1.5BTC sold for 60,000 € on 3 January 2022 (sale price: 40,000 € / BTC)

This results in the following calculation:

1BTC * (40,000 sale price - 10,000 € purchase price) = 30,000 €

0.5BTC * (40,000 sale price - 20,000 € purchase price) = 10,000 €

30,000 € + 10,000 € = 40,000 € gain