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by gamblor956 3102 days ago
It's driven off whats called your dollar cost average.

This is wrong for cryptocurrency, at least for Bitcoin. Because bitcoin is an asset for tax purposes, each coin (meant here as any quantity of cryptocurrency, not a specific unit) is subject to an individual tax computation, so you must use the actual price paid for each coin as the basis for computing taxes. You must also compare each coin's basis against the actual selling price of that coin at the time sold.

Note that this is generally also how you calculate gains/losses related to foreign currencies.