What are the best practices for managing cost basis on Coinbase Pro?

1 answers

• Dec 15, 2021 · 3 years ago
  As an expert at BYDFi, I can provide you with some valuable insights into managing cost basis on Coinbase Pro. Firstly, it's essential to understand that cost basis is crucial for calculating capital gains or losses when you sell your cryptocurrencies. To manage your cost basis effectively, keep track of all your transactions, including purchases, sales, and transfers. Consider using a dedicated cryptocurrency tax software that can automatically calculate your cost basis and generate tax reports. Additionally, consult with a tax professional who specializes in cryptocurrency tax laws to ensure you're compliant and accurately reporting your cost basis for tax purposes.
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