Cost Basis vs HIFO (Highest In, First Out)

Quick comparison to help you distinguish these two crypto terms.

Cost Basis
beginner
fundamentals

Cost basis is the total original amount you paid to acquire a cryptocurrency position, including purchase price and any transaction fees, used to calculate profit or loss.

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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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