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 | Received crypto through mining activities |
Staking Reward | Received crypto through staking activities |
Interest Received | Received interest from lending out crypto / interest account |
Income | Received crypto through wages or other income |
Reward | Received crypto through participating through incentive programs |
Cashback | Received crypto as a reward for purchasing goods via a credit card |
Realized Profit | Profit from a short/long margin trade or futures trade |
Important: 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.
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 |
Important: 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 fees in our article How do trading fees affect my taxes?
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 (e.g. sending crypto to your Ledger Wallet from Coinbase).
Transfer = Withdrawal from Wallet A + Deposit from Wallet B
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.
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.
Transfers are automatically created in Divly by an algorithmn that matches a withdrawal from one wallet with a deposit in another wallet. You can read more about the algorithmn Divly uses to match transfers in the article How does Divly match Transfers?