# Capital Gains

> The profit you make when you sell an asset for more than you paid. Usually taxable.

Canonical URL: https://fudfomo.co/glossary/capital-gains
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

A capital gain is the difference between what you bought an asset for and what you sold it for, when the result is positive. Most countries tax capital gains, with different rates for short-term and long-term holdings.

In crypto, every disposal can be a taxable event: selling for cash, swapping one token for another, paying for goods, or sometimes even bridging between chains.

## Regulatory context

Tax treatment of crypto varies enormously between countries. Always keep detailed records and check the rules where you are tax resident.

## Related terms

- [Tax Lot](https://fudfomo.co/glossary/tax-lot): A specific batch of crypto bought at a known price and date, used to calculate gains on disposal.
- [KYC](https://fudfomo.co/glossary/kyc): Know Your Customer. The identity checks an exchange runs before letting you trade.
- [CEX](https://fudfomo.co/glossary/cex): A centralised exchange. A regulated platform where you buy and sell crypto using an account.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co