Cost Basis vs LIFO (Last 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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LIFO (Last In, First Out)
intermediate
strategy

A cost basis accounting method that assumes the most recently purchased cryptocurrency units are sold first, applying the newest acquisition costs to each disposal for tax calculation purposes.

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