Crypto Tax FIFO vs Specific Identification
**FIFO** sells oldest lots first—simple but may increase gains in bull markets. **Specific identification** lets you choose lots—better control if records are complete.
Step by step
1. Export exchange history
Every buy/sell/transfer affects lots.
2. Pick allowed method
Jurisdiction rules vary—confirm with a tax pro.
3. Reconcile before filing
Mismatch between FIFO and specific ID can swing tax materially.
FIFO vs specific ID
Better records unlock optimization; FIFO is the default when lots are unknown.
- FIFO: Automatic; often higher gain in rising markets.
- Specific ID: Harvest losses strategically; needs documentation.
Use our calculators
Common mistakes
- Missing transfer cost basis
- Mixing methods without approval
FAQ
Does LIFO differ?
See our FIFO vs LIFO guide—another lot-order method.