This could be because of my lack of trading knowledge but I don’t understand why this is happening:
If I make several buy transactions over time, at different prices then the cost per unit shows the average; this seems to be correct (I might have missed something though).
However, if I sell some of that same coin, in this particular example, at a higher price than the average cost per unit, then the cost per unit displayed on the dashboard for the related coin, changes (in this case to a lower value).
I really don’t understand why that would be the case; the number of coins I have left still have the same average cost, don’t they? Why would that sale cause the cost per unit value to change?
It’d make sense for a “buy” but for a “sell”, I really don’t get it
As you mentioned, it’s because of the cost-basis method used in my location (Ireland): FIFO
If I temporarily switch the cost-basis method to ACB (Average Cost Basis), I see something that intuitively makes more sense: the value shown is then the sum of all the money I spent on a particular coin, divided by the total number of that coin I bought.
But I now understand that for tax purposes, the information you see in your transaction will depend on the cost-basis method applied by the tax authorities in the country where you pay your taxes.
It can actually come as quite a shock when you have calculated a certain figure using your own calculations - then the system tells you something completely different
Have you considered relocating to a more crypto-friendly country?
