Lesson 4 of 6
4

Recording Transactions

How to add buy/sell transactions and why keeping accurate records matters.
Course progress67%
6 min readEasy

Your Crypto Transaction History: The Foundation of Everything

Think of transaction records as the foundation of your crypto tracking. Every profit calculation, tax report, and performance metric depends on having accurate transaction data. This lesson teaches you how to record different types of crypto activities and build a complete investment history.

Transaction rules

Types of Transactions Explained

Use these examples to decide what belongs in your FolioFlux history and what is only a wallet movement.

Buy Transaction

When you purchase crypto with regular money

When to use this:

Every time you buy crypto with USD, EUR, or other fiat currency

Example:

You spent $500 on Coinbase to buy Bitcoin

Sell Transaction

When you convert crypto back to regular money

When to use this:

When you sell crypto and receive cash in your bank account

Example:

You sold 1 ETH and received $2,300 in your bank account

Transfer

Moving crypto between your own wallets (no money involved)

When to use this:

When you move crypto from exchange to personal wallet, or between your wallets

Example:

Moving Bitcoin from Coinbase to your hardware wallet

Reward/Staking

Crypto you earned through staking, mining, or rewards

When to use this:

When you receive crypto without buying it (earned, not purchased)

Example:

Earned 0.05 ETH from staking rewards on Ethereum 2.0

When NOT to Add Transactions

These activities don't need new transactions in FolioFlux

Don't Record These:

  • •Moving crypto between your own wallets
  • •Checking prices or portfolio value
  • •Failed or cancelled transactions
  • •Crypto-to-crypto swaps (unless selling for cash)

Why Not:

  • •Transfers don't change your holdings
  • •Price checks aren't transactions
  • •Failed transactions never completed
  • •Swaps are more complex (different lesson)

Best Practices for Transaction Records

Follow these guidelines to maintain accurate, useful transaction history

1

Track Everything

Record every buy and sell, no matter how small

Why: Small transactions add up, and you need complete records for taxes

2

Add Transactions Promptly

Record transactions within a few days of making them

Why: Details are fresh in your memory, and prices are easier to find

3

Keep External Records

Save exchange confirmations and bank statements

Why: FolioFlux is great, but having backup records protects you

4

Use Clear Notes

Add notes explaining unusual transactions

Why: Future you will thank present you for the context

5

Review Monthly

Check your transaction history once a month

Why: Catch any missing transactions or errors early

6

Don't Stress Perfection

Close estimates are better than missing transactions

Why: You can always edit details later when you find exact numbers

Common Transaction Recording Mistakes

Recording Transfers as Buys/Sells

Moving Bitcoin from Coinbase to your hardware wallet isn't a sale - you still own the same Bitcoin.

Forgetting About Fees

If you paid $500 but received $495 of Bitcoin (due to fees), record the full $500 as your cost basis.

Using Today's Date for Old Purchases

Always use the actual purchase date. This affects your cost basis and capital gains calculations.

Not Recording Small Transactions

That $50 Dogecoin purchase might seem insignificant, but it's still a taxable event that should be tracked.

Practice Exercise: Build Your Transaction History

Time to put this knowledge into practice! Here's your challenge:

Your Mission:

  1. 1.Find records of your last 3 crypto purchases
  2. 2.Add each as a separate transaction in FolioFlux
  3. 3.Check that your portfolio totals look correct
  4. 4.Add notes to any transactions that need context

Success Checklist:

  • Transaction dates match your purchase records
  • Amounts and prices are accurate (or close)
  • Portfolio value matches your expectations
  • You feel confident about your records

Learning path

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