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TagsWhich method, FIFO or LIFO, is recommended for tracking cryptocurrency transactions?
Peter NgwaDec 26, 2021 · 3 years ago1 answersWhen it comes to tracking cryptocurrency transactions, which method, FIFO (First-In-First-Out) or LIFO (Last-In-First-Out), is considered more suitable and recommended? What are the advantages and disadvantages of each method? How do they impact tax calculations and overall transaction tracking?
1 answers
- BYDFi recommends using FIFO for tracking cryptocurrency transactions. This method ensures that the oldest assets are sold or used first, which can be beneficial for tax purposes. However, it's important to note that the choice between FIFO and LIFO ultimately depends on your specific needs and goals. It's always a good idea to consult with a tax professional or accountant to determine the best method for your situation.Dec 26, 2021 · 3 years ago
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