Ethereum Incorrect DCA and Cost

My ETH is not showing the correct amount that I spent on it.

I spent £1610.66 on ETH, however on the dashboard - it’s showing my total cost as £1317. In addition, I had owned ETH before and sold, for my initial investment I bought in at £1278.33 - and now, even though I have bought in much higher, it is still showing that my DCA is the same. That means that I have spent £1610.66 - and the price of ETH is still around £1610 - but because the dashboard is incorrect - Koinly is telling me that I have made £407 in profit - but I haven’t. It has happened to me before when I bought and sold ETH and it’s showing that I have made a profit (and it reflects in the tax report that I have made a profit) when in fact, I made a loss. So currently, I will be charged for a profit that I didn’t make.

I used Binance exchange, however I put the data in manually because I do not trust Binance API.

There is no solution for me to fix this as it is a a discrepency with Koinly. The only reason I can think is that I bought in ETH/GBP and not ETH/USDT - and sometimes there can be a few hundred piund difference in price. I assume that Koinly reads USDT or BTC and then converts it to GBP, therefore it is not reporting the correct price for the pair. Other than that - I cannot for the life of me think of what the problem might be as I am not a programmer.

Please help, it makes me doubt everything and I have over 405 trades :-/

Hi Anna,

I would have to review your account to give you a definitive answer but the most likely reason is that your transactions have been affected by the ‘Bed and Breakfasting’ rule which is used in the UK.

This rule will affect any sales/purchases that are made within 30 days of a disposal.
You can read more about this here:

https://koinly.io/guides/hmrc-cryptocurrency-tax-guide/

Feel free to contact us via live chat if you would like us to take a closer look.

Best regards,
Petur

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Thank you very much Petur - I will read the link that you have posted for me.