TL;DR To record bridged or wrapped coins properly, enter them in three steps:
Use a Swap or Trade for the coin conversion
Record the Withdrawal from the source network
Log the Deposit to the destination network
Use Swap to avoid taxable events or Trade to trigger tax implications. Consult a tax advisor to determine which type applies.
The same logic applies to other conversions that behave like a swap, for example staking conversions (ETH → ETH2) or general coin swaps imported via API/CSV as two separate transactions instead of one trade. See the sections below for how to handle these cases.
What are Bridge Transactions?
Bridge transactions occur when you transfer coins across different blockchains or wrap them into new tokens, for example, converting ETH to WETH on the MATIC network. Because the tokens often use different tickers or operate on different chains, it's important to track these movements properly for portfolio and tax accuracy.
Swap vs. Trade: Which Should I Use?
You have two options in CoinTracking for entering these transactions:
Swap (non-taxable):
Maintains the original holding period
Recommended for wrapping and cross-chain movements that are not taxable events
Trade (taxable):
Resets the holding period
Triggers potential capital gains or losses
Note: Always check with your tax advisor before choosing the correct classification.
Step-by-Step: How to Enter a Bridge Transaction
Step 1: Enter a Swap or Trade of the Original Currency
This is the conversion of one asset to another in the same network (e.g., ETH to WETH on Ethereum). Use "Swap" if non-taxable; use "Trade" if taxable.
Trade:
Step 2: Record a Withdrawal of the Bridged Currency from the Source Network
Log the withdrawal of the newly wrapped or bridged asset from the original chain’s wallet. Example: Withdrawal of WETH from the Ethereum wallet.
Step 3: Record a Deposit of the Bridged Currency into the Destination Network
Log the deposit of the wrapped or bridged asset into the wallet on the new network. Example: Deposit of WETH into the MATIC wallet.
How Do I Enter an ETH → ETH2 Staking Conversion?
Converting ETH into ETH2 for staking works the same way as a bridging or wrapping transaction and should generally be entered as a Swap rather than a Trade, so that the original holding period of your ETH is preserved (confirm the correct tax treatment with your tax advisor).
Enter the conversion using the same Swap dialog described in Step 1 above: ETH as the outgoing coin and ETH2 as the incoming coin.
Why Do I See "Missing Transactions" for ETH2?
Because ETH and ETH2 are tracked as different ticker symbols, CoinTracking may show a "Missing Transactions" warning if only one side of the conversion (either the ETH withdrawal or the ETH2 deposit) was imported or entered. To resolve this, make sure both sides of the conversion are recorded, either as a single Swap/Trade (recommended) or as a matching withdrawal from the ETH balance and deposit into the ETH2 balance, as shown in Steps 2 and 3 above.
For the broader staking and unstaking workflow beyond this conversion step, refer to CoinTracking's dedicated staking/unstaking guide.
How Do I Convert an API-Imported Swap Into a Single Trade?
When you swap one coin for another on an exchange, the exchange's API or a blockchain explorer often reports this as two separate transactions: a withdrawal of the coin you sold and a deposit of the coin you received, instead of a single trade. For accurate tax reporting, general swaps like this should be entered as one Trade (Buy Coin A / Sell Coin B) rather than as two separate movements.
To fix this after an API or CSV import:
Open the imported withdrawal (or deposit) transaction and convert it into a Trade, entering the corresponding coin and amount you received (or sent) as the other side of the trade.
Delete the now-redundant duplicate transaction (e.g., the separate deposit that duplicates the coin already entered in the new trade), so the swap isn't counted twice.
This applies not only to bridged/wrapped coins, but to any swap where the source data (exchange API or blockchain explorer) only shows a withdrawal and deposit pair.
If your trade involved a transaction fee, see the separate guide on how to enter fees for trades.
How Do I Stop Deleted Transactions From Reappearing After the Next API Import?
If you delete a duplicate transaction created by an API import (as described above), the next automatic API sync may re-import it unless you set a start date for that API key.
To prevent this:
Go to your API key settings and open the API key in question for editing.
In the Start date field, enter the date you deleted the transaction, in DD.MM.YYYY format.
Save the API key.
This tells CoinTracking to only import transactions from that date forward, so previously deleted duplicates won't be re-added on the next sync.
Examples
ETH (Ethereum) → WETH (Polygon)
BTC → WBTC
USDT (ERC-20) → USDT (TRC-20)
ETH → stETH
ETH → ETH2 (staking conversion)
Disclaimer: Please note that we are not tax advisors and are therefore not permitted to provide tax advice. The information contained in FAQ is for general information and technical support in using the CoinTracking software only. It does not constitute tax or legal advice. Please contact a qualified tax advisor with any tax questions.