What is the best method to determine the average cost of my digital assets?

3 answers

• Dec 15, 2021 · 3 years ago
  One of the best methods to determine the average cost of your digital assets is to use the FIFO (First-In, First-Out) method. This method involves calculating the average cost based on the order in which you acquired your assets. By using this method, you can accurately track the average cost of your digital assets over time. It's important to keep detailed records of your transactions and the prices at which you acquired your assets to ensure accurate calculations.
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• Dec 15, 2021 · 3 years ago
  Calculating the average cost of your digital assets can be a bit tricky, but there are several methods you can use. One popular method is the weighted average cost method, which takes into account the quantity and cost of each asset you own. Another method is the specific identification method, where you track the cost of each individual asset separately. It's important to choose a method that works best for your specific situation and to keep accurate records of your transactions.
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• Dec 15, 2021 · 3 years ago
  At BYDFi, we recommend using a third-party portfolio tracking tool to determine the average cost of your digital assets. These tools often have built-in features that can automatically calculate the average cost based on your transaction history. Some popular portfolio tracking tools include CoinTracking, Blockfolio, and Delta. These tools can save you time and effort in manually calculating the average cost of your digital assets. Remember to always double-check the calculations and ensure the accuracy of the data entered into these tools.
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