Can FIFO be applied to different types of cryptocurrencies?

3 answers

• Dec 05, 2021 · 3 years ago
  Yes, FIFO can be applied to different types of cryptocurrencies. FIFO is a common accounting method used to calculate gains or losses for assets, including cryptocurrencies. It involves selling the oldest units of a particular cryptocurrency first, and then calculating the gains or losses based on the price at which those units were acquired. This method ensures that the order in which the units were acquired is taken into account when calculating gains or losses.
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• Dec 05, 2021 · 3 years ago
  Definitely! FIFO is a widely accepted method for calculating gains or losses for different types of cryptocurrencies. It's like standing in a queue - the first units you bought are the first ones you sell. This method helps maintain transparency and fairness in accounting for gains or losses, as it considers the chronological order of acquiring the cryptocurrencies.
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• Dec 05, 2021 · 3 years ago
  Yes, FIFO can be used to calculate gains or losses for different types of cryptocurrencies. For example, at BYDFi, we encourage our users to use the FIFO method for tax purposes. It ensures accurate reporting and compliance with tax regulations. FIFO is a straightforward and logical approach that can be applied to any type of cryptocurrency, regardless of the exchange or platform you use.
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