A Simple Acquisition Example

Suppose an investor buys 100 illustrative token units:

• Purchase price: A$10 per unit.
  • Asset purchase amount: A$1,000.
  • Separately charged acquisition fee: A$10.
  • Total cash spent: A$1,010.

For a simple performance record that includes this acquisition fee:

Recorded acquisition cost = A$1,010

Recorded cost per unit = A$1,010 ÷ 100 = A$10.10

This example assumes the fee is paid separately in AUD and all 100 units are received. Tax treatment should be assessed under the applicable rules.

2. Keep Individual Purchase Lots

A purchase lot records an acquisition made at a particular time.

Buying the same asset on different dates creates separate acquisition records.

For example:

The weighted average recorded cost is:

A$1,620 ÷ 150 = A$10.80 per unit

That average can help summarise performance, but it does not replace the individual records needed to establish which units were disposed of.

Do not assume an app’s average-cost calculation is automatically suitable for an Australian tax return.

3. Separate Current Value From Acquisition Cost

Current value estimates what the holding is worth at a selected market price.

Current holding value = Units held × Current reference price

Using the previous example:

• Units held: 150.
  • Reference price: A$12.
  • Current indicative value: A$1,800.
  • Recorded acquisition cost: A$1,620.

The illustrative unrealised gain is:

A$1,800 − A$1,620 = A$180

However, the amount available after selling may be lower because of spreads, trading fees, slippage or withdrawal charges.

Record the valuation time and price source. Prices can differ between services and change quickly.

4. Distinguish Realised and Unrealised Results

Realised and unrealised results describe different stages of an investment.

Unrealised Gain or Loss

This is the difference between the current value of assets still held and their allocated recorded cost.

It changes as market prices move.

Realised Gain or Loss

This arises when assets are disposed of and the proceeds can be compared with the cost allocated to those assets.

For performance tracking, a simplified calculation is:

Realised result = Net disposal proceeds − Allocated acquisition cost

A tax calculation may require different adjustments and should be prepared separately.

A Simple Sale Example

Suppose an investor sells an entire holding:

• Recorded acquisition cost: A$1,010.
  • Gross sale proceeds: A$1,200.
  • Sale fee paid in AUD: A$12.
  • Net sale proceeds: A$1,188.

The simplified realised performance result is:

A$1,188 − A$1,010 = A$178

This example excludes tax and other charges. Selling only part of a holding requires an appropriate allocation supported by the transaction records.

5. Record Crypto-to-Crypto Exchanges

Exchanging one crypto asset for another should appear in the records as both an outgoing asset and an incoming asset.

For Australian investors holding crypto on capital account, a crypto-to-crypto exchange generally involves a disposal for capital gains tax purposes, even when no Australian dollars are withdrawn. The ATO provides specific guidance on these transactions. ato.gov.au

Record:

• Asset disposed of.
  • Quantity disposed of.
  • Asset received.
  • Quantity received.
  • Transaction date and time.
  • Relevant AUD values.
  • Fees and how they were paid.
  • Transaction reference.

A portfolio that records only the new asset may lose the history needed to explain the old holding’s disposal.

6. Match Transfers Between Your Own Accounts

Moving the same asset between wallets or accounts you own should be identified as an internal transfer in your performance records.

Otherwise, software may incorrectly count:

• The outgoing transfer as a sale.
  • The incoming transfer as a new investment.
  • Both sides as separate holdings.

Match the withdrawal and deposit using the asset, quantity, timing and transaction identifier.

Preserve the original acquisition history rather than resetting the purchase date or cost to the transfer-date value.

Network fees should be recorded separately. Bridging, wrapping or receiving a different token can involve additional considerations and should not automatically be classified as a simple transfer.

7. Separate Deposits From Investment Returns

Adding money increases the account balance without creating a gain.

Consider this simplified period:

• Opening portfolio value: A$5,000.
  • External contribution during the period: A$1,000.
  • Closing portfolio value: A$6,300.
  • External withdrawals: None.

The cash-flow-adjusted monetary result is:

A$6,300 − A$5,000 − A$1,000 = A$300

The portfolio increased by A$1,300, but only A$300 remains after accounting for the contribution.

This calculation gives a monetary result, not a return percentage that accounts for when the contribution was made.

8. Account for Withdrawals When Reviewing Performance

A withdrawal can reduce the balance even when the portfolio has produced a positive result.

For a defined portfolio boundary, a simplified monetary calculation is:

Result = Closing value − Opening value − External contributions + External withdrawals

For example:

• Opening value: A$5,000.
  • Closing value: A$4,800.
  • External contributions: None.
  • External withdrawals: A$700.

Result = A$4,800 − A$5,000 + A$700

Result = A$500

This assumes complete valuations and cash-flow records, with costs already reflected in the figures. Do not deduct those same costs again.

Moving assets between accounts already included in the portfolio is an internal movement, not an external withdrawal.

9. Use Return Percentages Carefully

When there are no external contributions or withdrawals, a simple period return can be calculated as:

Return = (Closing value − Opening value) ÷ Opening value × 100

With contributions or withdrawals, timing matters.

Two commonly used approaches are:

• Time-weighted return: Separates the effect of external cash-flow timing by measuring linked subperiod returns.
  • Money-weighted return: Accounts for the size and timing of external cash flows.

These methods can produce different results.

Before comparing platform performance figures, check which method is used, what period is covered and whether fees are included.

10. Track Fees Without Counting Them Twice

Fees can affect acquisition costs, disposal proceeds and the quantity of crypto remaining.

Record:

• Trading fees.
  • Network fees.
  • Withdrawal charges.
  • Payment-processing costs.
  • Currency-conversion charges.
  • The currency or token used to pay each fee.

Check whether a reported amount is gross or net.

For example, if a sale record already shows proceeds after the fee, subtracting that fee again understates the result.

Paying a fee in crypto also reduces that asset’s balance and may require separate tax consideration.

Use Australian Dollars Consistently

For an Australian record, distinguish the transaction currency from the AUD value used in reporting.

Keep:

• Original transaction amount and currency.
  • AUD equivalent at the relevant time.
  • Exchange-rate or valuation source.
  • Date, time and timezone.
  • Supporting transaction confirmation.

Do not convert every historical transaction using today’s rate.

A USD-denominated stablecoin should not be recorded as though one unit always equals one Australian dollar.

Record Rewards Separately From Purchased Assets

Staking rewards, airdrops and other token receipts should be identified by transaction type.

Record:

• Asset and quantity received.
  • Receipt date and time.
  • AUD value where relevant.
  • Source and nature of the receipt.
  • Related fees.
  • Any later disposal.

Do not assume every receipt has zero cost or represents a cash contribution.

Tax treatment varies with the arrangement. Keep enough evidence for a registered tax agent to assess it.

Create a Complete Portfolio Record

A spreadsheet or suitable reporting tool can help organise the information.

Useful fields include:

Keep original exports as well as any edited tracking file.

Reconcile Records With Actual Holdings

Reconciliation checks whether recorded transactions explain the balance actually held.

For each asset:

Opening units + Incoming units − Outgoing units = Closing units

Include units paid as fees where applicable.

If the calculation does not match the account balance, investigate:

• Missing transactions.
  • Duplicate imports.
  • Unmatched transfers.
  • Unrecorded rewards.
  • Incorrect fee treatment.
  • Token migrations.
  • Decimal or rounding errors.

Resolve unexplained differences before relying on the performance calculation.

What OptimCoins Users Should Confirm

Before relying on an OptimCoins dashboard or export, ask:

• Can complete transaction histories be downloaded?
  • Are deposits, withdrawals, trades and fees identified separately?
  • Which currencies and timezones appear in reports?
  • How are incoming transfers valued?
  • Does displayed performance include fees?
  • Are realised and unrealised results separated?
  • How are external contributions handled?
  • Can historical records still be accessed after account closure?

These questions do not establish that OptimCoins offers particular reporting features.

Confirm the available records and retain independent copies.

Protect Portfolio Information

Portfolio records can reveal balances, wallet addresses and transaction history.

Store exports securely and restrict access.

If connecting a reporting tool, review its permissions and use read-only access where supported. A portfolio tracker should not need your wallet recovery phrase or private keys.

Never place recovery phrases, passwords or private keys inside a portfolio spreadsheet.