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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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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