Blockpit Fix Unlabeled Transactions

Blockpit showing "Unlabeled" warnings in your transaction list? You're not alone. Especially with DeFi activities, bridge transfers, and unknown tokens, Blockpit cannot automatically recognize the transaction type. This guide shows you step by step how to identify unlabeled transactions, classify them correctly, and bring your crypto accounting up to a clean standard.

01 What Does "Unlabeled" Mean in Blockpit?

Blockpit marks transactions as unlabeled when it cannot automatically recognize the transaction type. This happens when Blockpit imports a transaction from a wallet or exchange but cannot determine whether it's a trade, deposit, withdrawal, or another category.

This primarily affects DeFi smart contracts, bridge transfers between blockchains, and unknown tokens that Blockpit doesn't have in its database. With DeFi-active portfolios, typically 30%+ of all transactions are affected. Automatic recognition reaches its limits here because the underlying transactions are more complex than simple exchange trades.

A concrete example: You use CoWswap for a token swap. Blockpit imports the transaction via wallet sync but classifies it as "Unlabeled". Without correct classification, the swap is missing from the tax calculation. The result: an incorrect total in the tax report.

Source: Blockpit Help Center

02 Which Transactions Are Frequently Unlabeled?

Not every transaction is marked as unlabeled. Simple exchange trades and transfers are usually recognized correctly by Blockpit. The problems begin where blockchain activity becomes more complex.

DeFi Interactions

Swaps on decentralized exchanges like CoWswap or Jupiter, lending deposits on Aave or Compound, and yield farming are the most common sources of unlabeled transactions. Blockpit recognizes the smart contract but cannot always derive the transaction type.

Cross-Chain Bridges

Bridge transfers via protocols like Wormhole, LayerZero, or Multichain create transactions on two different blockchains. Blockpit often sees only one side of the transfer and cannot automatically establish the connection.

Wrapped Tokens and Governance

Wrapped token interactions (e.g., WETH to ETH or wBTC), governance actions like voting and delegating, as well as unknown airdrops are also frequently imported as unlabeled. This is especially true for contracts that Blockpit doesn't know in its database.

• DeFi Swaps – CoWswap, SushiSwap, Jupiter, Raydium
• Lending/Borrowing – Aave, Compound, MakerDAO
• Bridges – Wormhole, LayerZero, Multichain, Stargate
• Wrapped Tokens – WETH, wBTC, stETH
• Governance – Voting, Delegating, Claiming
• Airdrops – Unknown token deposits without context

03 Step by Step: Fix Unlabeled Transactions

The process is systematic. Go through the following steps in order to clean up all unlabeled transactions in Blockpit.

Step 1: Filter All Unlabeled Transactions

Open the transaction list in Blockpit and use the filter function. Filter by the status "Unlabeled" to see all affected entries at a glance. This gives you an overview of the scope and allows you to proceed systematically.

Step 2: Identify Transaction Type

For each unlabeled transaction, you need to find out what actually happened. Use the blockchain explorer of the respective chain (e.g., Etherscan for Ethereum, Solscan for Solana). Search for the transaction hash and check: Which smart contract was called? What was the function? Is it a swap, deposit, withdrawal?

Step 3: Assign Appropriate Label

Assign the label in Blockpit that technically and correctly represents the actual transaction. Blockpit offers various categories such as Trade, Deposit, Withdrawal, Staking Reward, Interest, Reward, and more. Which label is correct depends on the specific case. What matters is what actually happened on the blockchain. When in doubt, cross-reference with the blockchain explorer from Step 2.

Step 4: Mark Scam Tokens

If you find tokens in your wallet that you never bought or received, they are probably scam airdrops. Mark these in Blockpit as "Spam" or change the ticker. This way they won't be recorded as taxable income. Never interact with unknown tokens – it can be a security risk.

Step 5: Trigger Recalculation

After you have assigned all labels, manually trigger the recalculation via the button in Blockpit. Only after recalculation do the corrected labels flow into the tax report. Check afterwards whether new warnings or errors have emerged.

Source: Blockpit Help Center

04 Label DeFi Transactions Correctly

DeFi transactions are the most common cause of unlabeled entries. Here's an overview of how to correctly classify the most important DeFi categories.

Lending (Aave, Compound)

Lending protocols have three transaction types: The deposit into the protocol is labeled as Deposit. The repayment (withdrawal of the deposited amount) as Withdrawal. And the interest you receive as Interest. Make sure that deposit and repayment are correctly linked so no false profit is created.

Liquidity Pools

When you deposit tokens into a liquidity pool, you receive LP tokens. This deposit is a trade (tokens for LP tokens). Rewards you receive from the pool are classified as Reward. When exiting the pool, you exchange the LP tokens back – again a trade.

Staking

The deposit for staking is labeled as Staking. Rewards you regularly receive as Staking Reward. Unstaking (withdrawal) is the corresponding counter-entry. With liquid staking (e.g., stETH), an additional token is created that must be recorded as a trade.

Bridges

Cross-chain bridges & swaps create two unlinked transactions: an outflow on chain A and an inflow on chain B. In Blockpit, both sides must be correctly marked as belonging together and linked to a transfer.

05 Special Cases and Common Errors

Some transaction types require special attention because they are easily misclassified. You should know these special cases.

Wrapped Tokens: Not a Taxable Trade

The exchange of WETH to ETH (or vice versa) is a technical wrapping/unwrapping. In Blockpit, this process is classified as a Swap. Since the value is identical, no real gain or loss is created. The same applies to wBTC to BTC.

Scam Airdrops: Don't Label as Income

Scam tokens that land in your wallet unsolicited should never be classified as income. Mark them in Blockpit as spam or change the ticker to a placeholder. Otherwise, Blockpit calculates a taxable inflow that isn't one. Special caution: Some scam tokens have artificially inflated prices in data feeds.

Failed Transactions: Only Gas Costs Relevant

A failed transaction (status: "Failed" in the blockchain explorer) has not transferred any value. The gas costs were still incurred and can be considered as transaction costs depending on the legal view. The transaction value itself is irrelevant and should not be recorded as a trade.

Multi-Step DeFi (Zap Functions)

Some DeFi protocols bundle multiple actions in one transaction – so-called zap functions. For example: Swap + deposit into a liquidity pool in one step. In Blockpit, each step must be checked individually and labeled correctly. A zap can contain a trade and a deposit simultaneously.

06 The Logic Chain: Why Correct Labels Matter

Unlabeled transactions are not just a display problem in Blockpit. They have direct impacts on the entire chain from crypto accounting to compliance.

A single unlabeled transaction may seem insignificant. But in practice, unlabeled entries lead to chain reactions: missing cost basis, incorrect balance calculations, and in the worst case, negative balances that cause further errors. The earlier you correct the labels, the more stable the entire documentation becomes.

07 What Unlabeled Transactions Mean for Your Tax Return

Unlabeled transactions in Blockpit are more than a display issue. They distort the tax calculation directly: outflows are recorded as sales with full gains, inflows get a cost basis of 0 EUR. That has concrete tax consequences.

Especially critical since DAC8 went live in January 2026: crypto exchanges report transaction data automatically to tax authorities. If Blockpit calculates incorrect gains because of unlabeled transactions and those numbers end up in the tax return, they won't match the DAC8 reports. The consequence may be: a follow-up inquiry from the tax authority.

08 When Professional Help Makes Sense

Across 500+ documented portfolios a clear pattern shows up: the more chains and DeFi protocols involved, the higher the share of unlabeled transactions, and the bigger the manual cleanup effort without a systematic approach.

Individual unlabeled transactions can be fixed yourself. But there are situations where the effort or complexity exceeds self-help. At a certain point, professional crypto bookkeeping makes the difference.

With Hundreds of Unlabeled Transactions

When Blockpit marks dozens or hundreds of transactions as unlabeled, manual classification becomes extremely time-consuming. Looking up each individual transaction in the blockchain explorer and labeling it correctly can quickly take days with an active DeFi portfolio.

With Complex DeFi Portfolios

Those active on multiple chains, using various DeFi protocols, and regularly using bridges have a portfolio that requires special expertise. The linking of cross-chain transfers, correct allocation of LP rewards, and tracking of cross-chain swaps are tasks where errors quickly lead to incorrect tax calculations.

TX-Partner Crypto Accounting

TX-Partner specializes exactly in this preparation: systematically identifying, classifying unlabeled transactions in Blockpit, and bringing crypto accounting to a clean, comprehensible standard. This includes DeFi transactions, bridge linking, scam token cleanup, and subsequent recalculation in the tool.

• Systematic Classification – All unlabeled transactions are identified and correctly labeled
• DeFi Expertise – Lending, liquidity pools, bridges, and staking correctly allocated
• Cross-Chain Linking – Bridge transfers between chains cleanly connected
• Clean Crypto Accounting – Reliable for tax advisors and tax authorities

Unlabeled transactions can in many cases be classified yourself with some patience. With complex DeFi portfolios, many chains, or bridge activities, the tool reaches its limits. If it's unclear whether your crypto accounting holds up, Robert or Johannes will look at it in the free Data Check and give an honest assessment of what works and where professional rework makes sense.