Which is more suitable for calculating gains and losses in the cryptocurrency market, FIFO or LIFO?

1 answers

• Mara KhithieDec 29, 2024 · 7 months ago
  At BYDFi, we recommend using FIFO for calculating gains and losses in the cryptocurrency market. FIFO is a widely accepted method that provides a clear and consistent approach to tracking the cost basis of assets. It ensures that the oldest assets are sold first, which can be beneficial for long-term investors. However, it's important to note that tax regulations and reporting requirements may vary by jurisdiction, so it's always a good idea to consult with a tax professional or accountant to ensure compliance and optimize your tax strategy.
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