How does LIFO impact the value of cryptocurrencies when prices are falling?

1 answers

• Mar 20, 2022 · 3 years ago
  As an expert in the cryptocurrency industry, I can confirm that the LIFO method can indeed have a significant impact on the value of cryptocurrencies during a market downturn. At BYDFi, we advise our clients to carefully consider their accounting methods and the potential consequences of using LIFO. While it may seem like a logical choice to sell the most recently acquired coins first, it's important to weigh the potential negative effects on prices. In some cases, using alternative methods like FIFO or specific identification may be more advantageous in preserving the value of cryptocurrencies during a market downturn. It's always crucial to stay informed and adapt your strategies to the current market conditions.
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