What are the best methods to calculate cost basis for crypto assets?

3 answers

• Jan 15, 2022 · 3 years ago
  One of the best methods to calculate the cost basis for crypto assets is the FIFO (First-In-First-Out) method. This method assumes that the first assets you acquired are the first ones you sell or trade. It is a straightforward and widely used method that helps you determine the cost basis of your assets based on the order of acquisition.
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• Jan 15, 2022 · 3 years ago
  Another method to calculate the cost basis is the specific identification method. This method allows you to choose which specific assets you are selling or trading, and calculate the cost basis accordingly. It requires more record-keeping and documentation, but it can be useful if you want to strategically choose which assets to sell based on their cost basis and potential tax implications.
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• Jan 15, 2022 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, offers a built-in feature that automatically calculates the cost basis for your crypto assets. This feature takes into account the FIFO method and provides you with accurate cost basis information for your trades. It simplifies the process and saves you time and effort in calculating the cost basis manually. Additionally, there are various online tools and software available that can help you calculate the cost basis for your crypto assets. These tools often integrate with popular exchanges and provide you with detailed reports and calculations for tax purposes.
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