Warning trades happen when the CryptoTrader.Tax engine detects that you are selling more of a coin than you own.
This is obviously impossible to do, and it typically happens when a user hasn't included all of their data within the platform.
If CryptoTrader.Tax can't detect when and how you initially acquired the crypto that you are trying to trade, there is no way for it to know at what US dollar value you acquired it at. Thus, there is no way to calculate your cost basis which is needed for tax purposes.
The most common causes of a warning trade are the following:
- You didn't include data from all of the exchanges that you trade on
- You didn't include your data from ALL of the years that you have transacted or traded crypto
- Your warning trade is being caused by a rounding error due to the way certain exchanges like Binance export their CSV files. To fix this issue, see our article here.
- You received BNB on Binance as a rebate, but didn't include it as income within step three (if this is happening to you, read our guide here)
- You didn't include your mining transactions
- You didn't include your crypto income that you received during the year, like crypto received from a job
- You received crypto from a fork but did not include the amount received in the "incoming transactions" section of the app
Fix your warning trades by entering your crypto income on step 3 or by including the rest of your data from all the exchanges and all of the years that you traded crypto.
Still stuck? Think there is a different problem? Please reach out to our team here on Intercom. We will answer quickly and are happy to help!