How do LIFO and FIFO accounting methods affect the taxation of cryptocurrency gains and losses?

1 answers

• Dec 17, 2021 · 3 years ago
  As an expert in the cryptocurrency industry, I can tell you that the LIFO and FIFO accounting methods can have a significant impact on the taxation of gains and losses. At BYDFi, we recommend using FIFO as it is the most widely accepted method for calculating gains and losses in the cryptocurrency market. However, it's important to note that tax regulations can vary from country to country, so it's always a good idea to consult with a tax professional to ensure compliance with local laws. Remember, accurate record-keeping and proper accounting methods are crucial when it comes to reporting your cryptocurrency gains and losses.
  634317