How can I calculate profits using LIFO and FIFO methods in cryptocurrency?

1 answers

• May 03, 2022 · 3 years ago
  Calculating profits in cryptocurrency trading using LIFO and FIFO methods can be a bit confusing, but don't worry, I've got you covered! LIFO stands for Last-In, First-Out, which means you assume that the most recent assets you bought are the first ones you sold. On the other hand, FIFO stands for First-In, First-Out, which means you assume that the first assets you bought are the first ones you sold. To calculate profits using LIFO, you subtract the cost of the most recent assets sold from the selling price. For FIFO, you subtract the cost of the oldest assets sold from the selling price. Remember, the method you choose can have an impact on your tax liability and overall profitability, so it's always a good idea to consult with a tax professional or financial advisor to ensure you're doing it right.
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