Can you recommend any cost basis methods that are suitable for frequent cryptocurrency traders?

1 answers

• Apr 30, 2022 · 3 years ago
  At BYDFi, we understand the needs of frequent cryptocurrency traders when it comes to cost basis methods. One method that can be suitable for you is the FIFO (First-In-First-Out) method, where you assume that the first cryptocurrencies you acquired are the first ones you sell. Another option is the LIFO (Last-In-First-Out) method, which assumes that the last cryptocurrencies you acquired are the first ones you sell. Additionally, you can use the specific identification method, where you identify the specific cryptocurrencies you sell and calculate the cost basis accordingly. It's important to consult with a tax professional to determine the best method for your specific situation and ensure accurate reporting.
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