FIFO

First-In, First-Out — a cost-basis accounting method that assumes the first units of an asset acquired are also the first units sold. For crypto, this often results in higher reported gains in rising markets (because oldest, cheapest units are matched against current high prices). FIFO is the default or mandatory method in many jurisdictions. Alternatives include LIFO (Last-In, First-Out, generally not permitted for crypto in the US after 2025 1099-DA finalisation), HIFO (Highest-In, First-Out — minimises reported gains in rising markets), specific identification (you choose which units to dispose), and average cost (used in some EU countries and Canada).