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How are market prices calculated in Divly?
How are market prices calculated in Divly?
Carl Gärdsell avatar
Written by Carl Gärdsell
Updated over 5 months ago

Divly can automatically convert thousands of cryptocurrencies to your local currency quickly and efficiently so you don't have to!

Note: You can choose to manually override these conversions if you prefer. Each transaction can have its value updated if you prefer another pricing source. This can also be done in bulk via batch editing.


Where Divly sources market prices

Divly uses several sources to price assets within the platform. We store historical market prices from different sources that span over a decade.

Market prices for cryptocurrencies

Divly supports thousands of cryptocurrencies in the crypto universe. We fetch our rates using CoinGecko that provides some of the most commonly used aggregated crypto price timeseries data.

Market prices for fiat currencies

Divly supports all major fiat currencies across the globe. We fetch our rates using open exchange rates which provides consistent and reliable exchange rate data.


How Divly calculates market prices

When setting prices for your crypto transactions, Divly first converts the cryptocurrency to USD, and then converts USD to your local currency. Divly converts prices of different transaction types based on the following logic.

Deposits and Withdrawals:

  1. Local currency: No conversions are necessary.

  2. Foreign fiat currency: Divly converts the value of the foreign fiat currency into your local currency.

  3. Crypto: Divly converts the crypto to your local currency.

  4. Crypto (missing price): Divly creates a Missing Price Information warning, notifying the user that the Transaction Value needs to be updated manually.

Trades:

  1. Local currency <> crypto: Divly uses the value given in your local currency. No conversions are necessary.

  2. Foreign fiat currency <> crypto: Divly converts the value of the foreign fiat currency into your local currency.

  3. Stablecoin <> crypto: Divly converts the value of the stablecoin into your local currency.

  4. Crypto <> crypto: Divly uses either the Received Currency or Sent Currency to convert to your local currency. The side chosen will depend on what your local tax authority has designated as the correct method.

  5. Crypto <> crypto (the side of the trade used to convert to your local currency can't be priced): Divly uses the opposite side of the trade and converts it to your local currency.

  6. Crypto <> crypto (neither side can be priced): Divly creates a Missing Price Information warning, notifying the user that the Transaction Value needs to be updated manually.


How to override the market price of a transaction in Divly

In some cases you may want to replace the default conversion with your own conversion, this can be done by editing the Transaction Value under each transaction.

Value in local currency

You can also choose to change the Transaction Value of up to 500 transactions simultaneously.


When to override the market price in Divly

There are a few situations that are specific to the nature of crypto that can require a user to edit the Transaction Value of a transaction in Divly.

A. Missing Price Information

There are many very small cryptocurrencies that are so unheard of that no pricing aggregator will ever collect market price data. In these cases it becomes very hard for Divly to assess what the real market price is.

To ensure you can do your taxes correctly, Divly provides a warning called Missing Price Information that flags this transaction to the user. You can then input your own market price manually by editing the Transaction Value.

If you can find a specific cryptocurrency on CoinGecko that we do not support, contact our support and we can have it added to our pricing databse.

B. Duplicate token symbols

Sometimes a token uses the same symbol as a more known cryptocurrency and hence Divly applies the pricing data from the more known cryptocurrency.

For example, if a small token were to use the symbol ETH, Divly would use the price of Ethereum rather than the obscure currency's real price.

Another example is BIT, that may refer to BitDAO, Biconomy, Bitonite, Bitmon, etc. Divly will apply the price of the token with the highest market capitalization by default.

C. Extreme volatility during a few minutes/hours

The cryptocurrency was so volatile that it might have pumped 300% during a few minutes, and then quickly declined back to the same price point. The daily rate Divly uses may not accurately represent the exact time you made the purchase. In this case feel free to edit this manually in Divly.

D. Significant price arbitrage between exchanges

In some periods of time, exchanges have priced specific cryptocurrencies very differently based on their order books. This can also be due to geographic restrictions of the exchanges. Divly will by default use Coingecko's pricing source (if no fiat currency is involved in a trade), which may differ from the price provided by a specific exchange. If the pricing difference is extreme (very rare), you may want to override the price manually in Divly.

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