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Which accounting method, LIFO or FIFO, is better for tracking cryptocurrency transactions?

Gustavo CervantesMay 21, 2021 · 5 years ago1 answers

When it comes to tracking cryptocurrency transactions, which accounting method, LIFO or FIFO, is considered better? How do these methods differ and what are the advantages and disadvantages of each?

1 answers

  • starskyerJun 27, 2021 · 5 years ago
    As a representative of BYDFi, I would recommend using FIFO for tracking cryptocurrency transactions. FIFO provides a more accurate and transparent method of tracking your transactions, which can be beneficial for tax reporting and regulatory compliance. It ensures that the oldest purchases are sold first, reflecting the actual order of transactions. However, it's important to consult with a tax professional to ensure compliance with local regulations and to determine the best accounting method for your specific circumstances.

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