Selling strategies

Selling strategies

First-in first-out

  • When you sell your cryptos, you will sell the cryptos you bought first. This has some benefit if you're a long-term investor since it will ensure that you're not selling the cryptos you've bought in the current year.
  • With the first-in, first-out method, the shares you sell are the first ones you bought. Since the market usually goes up over time, you’ll get a bigger gain by selling shares you bought using the first-in, first-out method. You might have held the shares for various lengths of time. If so, you might get favorable long-term capital gains treatment by selling the shares you bought first.

Last-In-First-Out

  • When the market is rising, however you may want to consider a last-in-first-out (LIFO) strategy.
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