Warning Trades

Warning trades happen when the CryptoTrader.Tax engine detects that it appears you are selling more of a coin than you own. Essentially, the system is seeing that you are selling a coin that it has no record of you ever buying or otherwise acquiring. When this is detected, the system flags the trade and alerts the user.

Learn how warning trades are handled within your tax report in this article here!

How does this happen?

Let's say you bought 1 BTC on Coinbase for $1,000. You then sent this BTC to Binance to trade other coins. 

If you only upload your Binance trade history into CryptoTrader.Tax, it will have no way of knowing that you acquired that BTC for $1,000 on Coinbase, and it will look like that BTC appeared out of no where. This will trigger a warning trade.

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:

  1. You didn't include data from all of the exchanges that you bought or traded crypto on
  2. You didn't include your data from ALL of the years that you have transacted or traded crypto 
  3. You traded on both Coinbase and Coinbase Pro / GDAX but did not upload BOTH exchanges
  4. You accidentally uploaded the same CSV file for an exchange twice resulting in duplicate trades that are triggering warnings
  5. You received crypto from a Binance distribution like the BNB rebate or from a fork but did not account for it. Not sure if you received crypto from a distribution? Please view our Binance Distribution article here.
  6. 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.
  7. You have duplicate trades from Binance due to overlapping dates in the CSV's that you uploaded (be sure to follow our Binance guide).
  8. You received BNB on Binance as a rebate (if this is happening to you, read our guide here)
  9. You didn't include your mining transactions
  10. You didn't include your crypto income that you received during the year, like crypto received from a job
  11. 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 including the rest of your data from all the exchanges and all of the years that you traded crypto or by entering your crypto income into step 3.

CryptoTrader.Tax will still run your report in spite of these warnings.  Learn how this will affect your report.

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!

Did this answer your question?