In this article, we will explain how to handle ETH2 transactions.
ETH2 represents staked ETH and is imported into CoinTracking from various exchanges and wallets.
Despite its name, ETH2 holds the same value as regular ETH. To ensure accurate value and price history for staked ETH2 tokens, they need to be converted to ETH.
There are three different options to convert ETH2 to ETH:
1) Entering a Swap transaction to convert ETH2 to ETH
2) Entering a Trade transaction to convert ETH2 to ETH
3) Using the Bulk edit function to convert ETH2 to ETH
1) Entering a Swap transaction to convert ETH2 to ETH
To avoid capital gains or losses, as well as a restart of holding periods, we recommend using the "Swap" transaction type. This will classify the operation as tax-free.
2) Entering a Trade transaction to convert ETH2 to ETH
If it's a taxable transaction, the "Trade" transaction type should be used. By using the "Trade" transaction type, the holding periods will be restarted.
3) Using the Bulk edit function to convert ETH2 to ETH
By using "Bulk edit", you can change the token ticker from ETH2 to ETH for all transactions in bulk.
Before using the "Bulk edit" function, it's recommended to mark all ETH2 transactions by entering "ETH2" in the comment field of each ETH2 transaction, in order to differentiate the staked ETH from the normal ETH transactions.
To do so, head to CoinTracking · Enter Coins, click on "Bulk Edit/Delete" and on "Bulk Edit":
Now select "Overwrite Coins" and type in "ETH2" as well as "ETH" in the specific fields:
Finally, click on "Find matching trades" and "Yes, update trades"
All ETH2 transactions have now been changed to ETH.