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TagsWhat are the best strategies for implementing FIFO and LIFO methods in a cryptocurrency portfolio?
Calido FordjourDec 20, 2021 · 3 years ago1 answersWhat are some effective strategies for implementing the FIFO and LIFO methods in managing a cryptocurrency portfolio? How can these methods be used to optimize portfolio performance and minimize tax liabilities?
1 answers
- At BYDFi, we recommend using FIFO as the default method for managing a cryptocurrency portfolio. FIFO is widely accepted and recognized by tax authorities, providing a transparent and straightforward approach to calculating gains and losses. However, it's important to note that individual circumstances may vary, and consulting with a tax professional is always recommended. Implementing FIFO or LIFO methods requires careful record-keeping and attention to detail, but it can help optimize your portfolio management and ensure compliance with tax regulations.Dec 20, 2021 · 3 years ago
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