Exchanges and Sales Show Little or No Profit

Describe the problem:
I bought some ETH which went way up in value.
Then I exchanged it on various occasions for ADA.
The Exchange transactions are showing a small loss when I am sure there were large gains on these transactions.
I have the same problem with sell transactions of ETH.
Sell transactions are showing a small loss when I am sure there were large gains.

Which exchange/wallet is this regarding?
I used a mix of exchanges: Coinbase, Binance, and Kraken.

How did you import data into this wallet?
Only exchanges were imported - nothing else - I did not import any wallets.
The exchanges were imported by CSV files.
All the transactions seem to be there.
Then I marked all Send transactions as gifts.
This was required because every send transaction was to one of my own wallets (I did not import any of my wallets) or was a gift to a family member.
I am aware that if wallets are not imported then profit on exchanges and sales should be higher.
This is because Koinly must assume the original purchase price is $0 if it can not find the original purchase.
But what I am seeing is the opposite. I am seeing little or no profit.

Question
Why am I seeing little or no profit on exchange and sales transactions?
Thanks

P.S. I should mention that I see large profits on Send transactions.
It seems Koinly wants to recognize profit when funds are moved off the exchanges rather than when a one cryptocurrency is exchanged for another or when cryptocurrency is sold for fiat.

Hey @John_Shearing , thanks for bringing this up!

You are missing a puzzle piece and here it is :slight_smile: :

When Koinly sees crypto deposited into your wallet, it often has no way to detect if it is the result of a transfer where the other wallet isn’t registered, or a fiat buy, or an airdrop etc…

This is why deposits into your exchange wallet from unknown sources always set the cost basis to what the fair market value of the asset is at time of deposit.

And in turn, if you just deposited ETH and traded it for something else right afterwards, the FMV at time of sale would be very close to your cost basis (set by the deposit time FMV).

This is why it is essential to add every single wallet you own to Koinly for Koinly to be able to track cost basis across them all.

I hope this all makes sense. Do not hesitate though to reach out to us via email to [email protected] if you need us to take a peak as specific transactions!

Cheers!

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