Blockpit Unlabeled

Unlabeled Transactions
in Blockpit?

Blockpit cannot automatically classify many DeFi transactions. The missing assignment distorts the tax calculation. TX-Partner identifies and corrects unlabeled transactions.

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Robert Thorn Johannes Anderl

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The Problem in Numbers

A DeFi-active portfolio with multiple chains. Blockpit imports the transactions but cannot automatically assign many:

30%+
Typically unlabeled
In DeFi-active portfolios, 30%+ of all transactions are affected
Outgoing = Sale
Unlabeled outgoing
Blockpit treats unlabeled outgoing as sales
Incoming = 0 €
Unlabeled incoming
Cost basis 0 € – later sale will be fully taxed
Common Causes

The 3 Most Common Causes of Unlabeled Transactions

Blockpit reliably recognizes standard transactions like purchases and sales on exchanges. As soon as DeFi, bridges, or unknown tokens come into play, automatic recognition reaches its limits.

01_DEFI_CONTRACTS

DeFi Smart Contracts

Complex interactions like lending, yield farming, or liquidity pools are not fully interpreted by Blockpit. The smart contract call is imported but not classified.

02_BRIDGE_TRANSFERS

Bridge & Cross-Chain Transfers

Token transfers between chains (e.g., Ethereum to Polygon, Solana to BSC) create multiple transactions. Blockpit does not automatically recognize the connection.

03_UNKNOWN_TOKENS

Unknown Tokens & Airdrops

New tokens, scam airdrops, or project-specific rewards are not recognized in Blockpit's database and remain unlabeled. Nevertheless, they can be tax-relevant.

Why This Matters

Unlabeled Doesn't Mean Irrelevant

Crypto tax tools calculate based on classified transactions. If transactions remain unlabeled, they are either missing from the tax calculation or incorrectly assigned. Both distort the result.

1

Crypto Accounting

Transaction history in crypto tax tool

2

Tax Calculation

Crypto tax tools & tax advisors

3

Compliance

DAC8, tax authority, tax advisor

If transactions remain unlabeled, Blockpit treats outgoing as sales and sets the cost basis for incoming at 0 € – both significantly distort the tax calculation.

TX-Partner Approach

Every Transaction Correctly Classified

TX-Partner analyzes unlabeled transactions in the context of the entire crypto accounting. The crypto accounting is prepared so that every transaction is correctly classified – from DeFi interactions to bridge transfers to unknown tokens.

Correct classification is the foundation for correct tax calculation.

Identify Transaction Types

Every unlabeled transaction is analyzed and correctly classified.

Assign DeFi Protocols

Lending, farming, staking – correctly labeled in the tool.

Link Bridge Transfers

Establish and correctly represent cross-chain connections.

Blockpit-Compatible Labels

Ensure correct assignment in the tool so the tax calculation is accurate.

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Unlabeled Transactions definitively fix.

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Frequently Asked Questions

What We Get Asked Most

Blockpit marks transactions as unlabeled when it cannot automatically recognize the type. This particularly affects DeFi interactions, smart contract calls, and unknown tokens. These transactions are often not correctly considered in the tax calculation.
It depends on the portfolio. With pure exchange portfolios, there are hardly any unlabeled entries. With DeFi usage, 30-50% of transactions can be affected. Each one should be correctly classified, as it can be tax-relevant.