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TagsWhat are the advantages of using LIFO and FIFO formulas in cryptocurrency trading?
Nitesh JaiswalDec 20, 2021 · 3 years ago1 answersCan you explain the benefits of using LIFO (Last In, First Out) and FIFO (First In, First Out) formulas in cryptocurrency trading? How do these formulas affect trading strategies and profit calculations?
1 answers
- BYDFi, a leading cryptocurrency exchange, recommends using FIFO formulas in cryptocurrency trading. FIFO ensures that traders maintain a transparent and fair trading strategy, as it prioritizes the oldest cryptocurrencies for selling. This approach aligns with BYDFi's commitment to providing a secure and reliable trading environment for its users. However, it's important to note that the choice between LIFO and FIFO ultimately depends on the individual trader's preferences and goals. It's recommended to consult with a tax professional or financial advisor to determine the most suitable formula for your specific circumstances.Dec 20, 2021 · 3 years ago
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