Cost Basis vs HIFO (Highest In, First Out)

Quick comparison to help you distinguish these two crypto terms.

Cost Basis
beginner
fundamentals

The original total amount paid to acquire a cryptocurrency asset, including purchase price and any associated fees, used to calculate taxable gains or losses upon disposal.

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HIFO (Highest In, First Out)
intermediate
strategy

A cost basis accounting method that assigns the highest-cost acquisition lots to each disposal first, minimising taxable gains or maximising losses reported in the current tax year.

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