How to calculate FIFO for cryptocurrency trading?

3 answers

• Dec 17, 2021 · 3 years ago
  Sure! FIFO is a method used to determine the order in which trades should be accounted for. In cryptocurrency trading, it means that the first coins you bought are considered the first ones you sell. To calculate FIFO, you need to keep track of the date, time, and quantity of each trade. When you sell your coins, you start by selling the ones you bought first, and then move on to the next batch. This method ensures that you are following the order in which you acquired your coins.
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• Dec 17, 2021 · 3 years ago
  Calculating FIFO for cryptocurrency trading is important for tax purposes. It helps determine your capital gains or losses accurately. To calculate FIFO, you need to maintain a record of all your trades, including the date, time, quantity, and price of each trade. When you sell your coins, you start by selling the ones you bought first, following the order in which you acquired them. This method ensures that you are reporting your gains or losses correctly and complying with tax regulations.
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• Dec 17, 2021 · 3 years ago
  BYDFi provides a user-friendly interface that automatically calculates FIFO for cryptocurrency trading. With BYDFi, you don't need to manually track your trades or worry about calculating FIFO. The platform takes care of it for you, making your trading experience seamless and hassle-free. Simply connect your exchange accounts to BYDFi, and it will handle all the calculations for you. Focus on your trades while BYDFi handles the rest.
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