Is there a formula or method to determine the realized gain of my cryptocurrency holdings?

3 answers

• Nov 24, 2021 · 3 years ago
  Yes, there is a formula that can be used to calculate the realized gain of your cryptocurrency holdings. The formula is: (Proceeds from the sale of cryptocurrency - Cost basis of cryptocurrency) = Realized gain. The proceeds from the sale of cryptocurrency refer to the amount of money you received when you sold your cryptocurrency. The cost basis of cryptocurrency refers to the original purchase price of the cryptocurrency, including any fees or commissions paid. By subtracting the cost basis from the proceeds, you can determine the realized gain. It is important to keep track of all your transactions and maintain accurate records to calculate the realized gain correctly.
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• Nov 24, 2021 · 3 years ago
  Calculating the realized gain of your cryptocurrency holdings can be a bit complex, but there are methods that can help you. One common method is the FIFO (First-In, First-Out) method, where you assume that the first cryptocurrency you bought is the first one you sold. Another method is the Specific Identification method, where you identify the specific cryptocurrencies you sold and calculate the gain based on their individual cost basis. It is recommended to consult with a tax professional or use specialized software to accurately calculate the realized gain of your cryptocurrency holdings.
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• Nov 24, 2021 · 3 years ago
  At BYDFi, we understand the importance of accurately determining the realized gain of your cryptocurrency holdings. While there is no one-size-fits-all formula, there are several methods you can use to calculate it. One popular method is the Average Cost method, where you calculate the average cost of all your cryptocurrency purchases and use it as the cost basis for calculating the realized gain. Another method is the LIFO (Last-In, First-Out) method, where you assume that the last cryptocurrency you bought is the first one you sold. It is important to note that the method you choose may have tax implications, so it's always a good idea to consult with a tax professional for personalized advice.
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