What is the FIFO requirement for digital currency transactions?

3 answers

• Dec 06, 2021 · 3 years ago
  The FIFO requirement for digital currency transactions means that the first digital currency you acquire is the first one you must sell or use for transactions. This means that if you buy Bitcoin first and then buy Ethereum, you must sell or use the Bitcoin before you can sell or use the Ethereum. This requirement is important because it ensures fairness and prevents manipulation in the market. It also helps to maintain accurate accounting and tax reporting.
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• Dec 06, 2021 · 3 years ago
  So, imagine you're at a digital currency buffet. The FIFO requirement is like the rule that says you have to eat the food on your plate in the order you put it there. You can't just skip to the dessert without finishing your main course. In digital currency transactions, it means you have to sell or use the digital currency you acquired first before you can touch the ones you acquired later. It's a way to keep things organized and prevent any funny business.
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• Dec 06, 2021 · 3 years ago
  The FIFO requirement for digital currency transactions is an important principle that ensures fairness and transparency in the market. It means that the digital currency you acquire first is the one you must sell or use first. This helps to prevent market manipulation and ensures that everyone has an equal opportunity to transact with their digital assets. At BYDFi, we adhere to the FIFO requirement to maintain a level playing field for all our users.
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