The process of recording all cryptocurrency-related transactions within a crypto tax tool is referred to as crypto data processing, or Crypto Data Preparation.

This process can be highly time-consuming and complex, given the vast number of ways users interact with blockchains.

Since the rise of smart contracts, transactions go far beyond simple deposits and withdrawals—now including liquidity mining, staking, NFTs, NFT staking, lending, and more.

All of these activities must be accurately represented in a crypto tax tool to correctly calculate profits and losses.