The simple idea
Imagine you earned 1,000 on one coin but lost 1,000 on another. Look only at the winner and it seems like you made 1,000. But your full picture is both sides: 1,000 earned here, 1,000 lost there. In many countries, realized gains and realized losses can be looked at together — so your taxable result may be closer to your gains minus your realized losses. In that example, the taxable amount could be much smaller, maybe even close to zero, depending on where you live. Rules differ by country, so a qualified tax professional should confirm what applies to you.
Cost basis
Cost basis is roughly what your crypto cost you. If you bought ETH for 2,000 and later sold it for 2,500, the difference is the possible gain before rules, fees, and matching details.
Tax lot
A tax lot is one chunk of crypto you bought at a certain time and price. If you bought BTC three times, you may have three chunks. When you sell some BTC, the app simulates which earlier chunk is being sold.
Realized vs still holding
If your coin went down but you still hold it, the loss is only visible on screen. If you sell or dispose of it, it becomes a recorded transaction. CoinTaxDelta works with uploaded transaction rows to show what was already recorded and what the numbers look like.
Selling to record a loss
Say you bought Coin B for 2,000 and it's now worth 1,000. While you keep holding it, that 1,000 loss only shows on screen. If you sell, the loss becomes a recorded transaction in your history — and depending on your country, that recorded loss may reduce the taxable result from your profitable trades. Some people then buy back the same coin, or a similar one, because they still want to stay invested. A few things to keep in mind: you're not creating free money — the loss already happened; you're only deciding whether to record it now; and some countries apply waiting periods or special rules to buying back. CoinTaxDelta shows you the numbers before you act. It doesn't decide for you.
This isn't free money
Tax-loss harvesting doesn't turn a bad trade into a good one. If you lost money, you lost money. The point is that the loss doesn't have to go to waste — depending on your country, it may reduce the taxable result from your winners. The goal isn't to hide profit. It's to count both sides: what you earned and what you lost.