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What is a deposit, withdrawal, trade, and transfer?
What is a deposit, withdrawal, trade, and transfer?

Learn about the different transaction types in crypto.

Carl Gärdsell avatar
Written by Carl Gärdsell
Updated over a week ago

There are four main transaction types in Divly that fundamentally represent all transactions in Divly.

  • Deposit: Receive crypto to your wallet.

  • Withdrawal: Send crypto out of your wallet.

  • Trade: Exchange one cryptocurrency for another cryptocurrency or fiat currency.

  • Transfer: Send crypto between two wallets you own.


Deposit

A deposit is a transaction that occurs when you receive crypto to your wallet.

Deposits can include many types of crypto transactions (what we call labels in Divly) which affect your taxes differently. How these labels affect your taxes depends on your country (found in your Divly Settings). These labels include but may not be limited to:

Deposit Label

Description

Airdrop

Received crypto through an airdrop

Fork

Received crypto through a blockchain fork

Received Gift

Received crypto as a gift from another party

Mining

Earned crypto through mining activities

Staking Reward

Earned crypto through staking activities

Interest Received

Earned interest from lending out crypto / interest account

Income

Earned crypto through wages or other income

Reward

Earned crypto through participating through incentive programs

Realized Profit

Profit from a short/long margin trade or futures trade

By default, Divly assumes you have purchased crypto at the daily market rate when a deposit occurs. This means that the value of the deposit in local currency on that day will be considered your purchase price (this affects your cost basis).

You can change this by going to the Transactions page in Divly, click on the Deposit transaction, and edit the Transaction Value to match what the acquisition price was in your local currency. Some labels will default this value to 0 in specific countries.

Updating the transaction value in a deposit transaction

Withdrawal

A withdrawal occurs when you send crypto out of your wallet.

Withdrawals can include many types of crypto transactions (what we call labels in Divly) which affect your taxes differently. How these labels affect your taxes depends on your country (found in the Divly Settings). These labels include but may not be limited to:

Withdrawal Label

Description

Gifted Away

Sent crypto as a gift to another party

Lost/Stolen

No longer have access to coins due to loss or theft

Donation

Donated crypto to a registered charity

Goods/Services

Purchased goods or services using crypto

Other Expense

Any other cost or expense you paid for in crypto

Interest Paid

Paid interest for borrowing crypto

Realized Loss

Loss from a short/long margin trade or futures trade

By default, Divly assumes you have sold your crypto at the daily market rate when a withdrawal occurs. This means you will see a profit or loss for each withdrawal (with the exception of certain labels in specific countries).

You can change this by going to the Transactions page in Divly, click on the Withdrawal transaction, and edit the Transaction Value to match what the disposal price was in your local currency. Some labels will default this value to 0 in specific countries.

Trade

A trade occurs when you exchange one cryptocurrency for another cryptocurrency or fiat currency. There are four types of trades in Divly:

Trade Type

Description

Buy

Purchase crypto with a fiat currency

Sell

Sell crypto for a fiat currency

Traded Crypto

Exchange one crypto for another crypto (e.g. BTC for ETH)

Trade

Exchange one fiat currency for another fiat currency (e.g. USD for EUR)

In most countries a Sell or Traded Crypto is considered to be a taxable event. Please read your local country's crypto tax guide to understand how the different trade types are taxed in your country.

Trades also often incur trading fees which affects your taxes. You can read more about how Divly handles trading fees in this article.

Transfer

A transfer represents a transaction between two of your wallets. For example, when you send crypto from an exchange to a hardware wallet or vice versa.

Transfers are created by matching a withdrawal from one wallet with a deposit in another wallet. You can read more about transfers and the matching process.

It is important to ensure that transfers are matched correctly in order to calculate your crypto taxes correctly.

Transfers typically do not represent taxable events as the wallets are owned by the same person. However, in some countries the transfer fee is seen as a disposal and is therefore expected to be included in your capital gains calculations. Divly handles this automatically based on your country. It can be toggled on and off in your Tax Settings.


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