What are the benefits of using average cost basis for tracking crypto investments?

3 answers

• Horizon IdeiasOct 13, 2023 · 2 years ago
  Using average cost basis for tracking crypto investments is beneficial because it allows you to smooth out the impact of market volatility. By calculating the average cost of your purchases over time, you can avoid making investment decisions based on short-term price fluctuations. This strategy helps to reduce the risk of making emotional or impulsive investment decisions and allows you to focus on the long-term performance of your portfolio.
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• Leander Plumbing CompanyMay 13, 2023 · 2 years ago
  One of the benefits of using average cost basis for tracking crypto investments is that it simplifies the process of calculating gains or losses for tax purposes. Instead of having to track the cost basis for each individual purchase, you can use the average cost basis method to calculate the overall cost basis of your holdings. This can save you time and effort when it comes to reporting your crypto investments to tax authorities.
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• michael agyemangJun 29, 2023 · 2 years ago
  At BYDFi, we believe that using average cost basis for tracking crypto investments is a smart strategy. It helps investors to take a more disciplined approach to their investments and avoid making hasty decisions based on short-term market movements. By focusing on the average cost of their purchases, investors can better assess the overall performance of their portfolio and make more informed investment decisions.
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