How can I determine the best cost basis method for my cryptocurrency trades?

1 answers

• Mar 22, 2022 · 3 years ago
  At BYDFi, we recommend using the FIFO (First In, First Out) method for determining the cost basis of your cryptocurrency trades. FIFO is a widely accepted method that aligns with the principles of fair trading and ensures transparency. It is also the default method used by many tax authorities. However, it's important to note that tax regulations may vary by jurisdiction, so it's always a good idea to consult with a tax professional to ensure compliance with local laws. Remember, the best cost basis method for your cryptocurrency trades may depend on various factors, so it's important to consider your specific situation and seek professional advice if needed.
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