What is a transaction label?
Carl Gärdsell avatar
Written by Carl Gärdsell
Updated over a week ago

Every deposit and withdrawal has the option to be tagged with a label. Examples of labels are mining, staking reward, airdrop, and gifted away.

Choose a label

Labels are used to ensure that the transaction is correctly represented and taxed accordingly. You can edit the label of a single transaction, or multiple transactions simultaneously. You can find a detailed list. explaining each label and it's purpose.

Do I need to label all transactions?

Not all deposits and withdrawals need to be labeled. Sometimes a withdrawal should just be a withdrawal, and a deposit should just be a deposit. Trades and transfers are never labeled.

Divly handles unlabeled transactions accordingly:

  • A deposit is assumed to be a purchase of cryptocurrency using the price in local currency on the day of the deposit. This affects the cost basis unless edited manually.

  • A withdrawal is assumed to be a sale of cryptocurrency using the price in local currency on the day of the withdrawal. In many countries this is a taxable event.

If the default assumption is correct, then you can leave them unlabeled. However, if a label suits the transaction more appropriately then please use that label.

In some cases the deposit or withdrawal should represent one side of a transfer between your own wallets. You can read more about transfers and how to ensure they are correctly matched.

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