FIFO vs LIFO vs HIFO for crypto, with a worked example
Short answer
The method decides which earlier purchase a sale uses up. Example: buy 1 BTC at $10,000 (2020), 1 at $30,000 (2021) and 1 at $20,000 (2022), then sell 1.5 BTC at $40,000 in June 2022. FIFO uses the oldest coins first: $35,000 gain, all long term. LIFO uses the newest: $25,000 ($20,000 short term). HIFO uses the most expensive: $20,000 ($10,000 short, $10,000 long). Which methods you may use depends on your country's rules.
- List every buy with date, quantity, price and fee.
- For each sale, pick lots by the method (oldest, newest or highest cost).
- Split a sale across lots when one lot is not enough.
- Mark each piece short or long term (held more than one year = long, US rule).
- Add proceeds minus fees and cost per piece.
Copy-paste code
One sale split across two lots (FIFO)
sell 1.5 BTC @ 40,000
lot 2020: 1.0 BTC cost 10,000 -> proceeds 40,000 gain 30,000 (long)
lot 2021: 0.5 BTC cost 15,000 -> proceeds 20,000 gain 5,000 (long)
total gain 35,000Good to know
A calculator, not tax advice: check your country's rules or ask a tax professional.
Since 2025, US rules track basis per wallet or account.
Information only, not financial advice.
Lotmoor: Crypto gain and loss on every sale
from $29Lotmoor does the matching in your browser for FIFO, LIFO and HIFO side by side, imports Coinbase's CSV and exports a Form 8949-style worksheet. Free for 50 transactions; $29 for 12 months.
Secure checkout · 14-day fix-or-refund if it doesn't work as described (terms)Questions
Can I pick a different method every year?
That depends on your tax rules; many require consistency or specific identification records. Ask a tax professional.
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