Crypto taxIntermediate
FIFO and cost basis
FIFO, first in, first out, matches each coin you sell with your earliest purchases, and that purchase price is the cost used to work out the gain.
- What it means
- The method decides which purchase price counts, so the same sale can show a different gain under FIFO than under average cost.
- What to watch
- Which method your country's rules use, such as FIFO or average cost, and whether purchases are matched per exchange or across all of them.
- How Compass-Alpha uses it
- The tax overview matches each sale with your purchases using your country's published method, such as FIFO or average cost.
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