In the event where someone buys some x-coin every month and at the end of the year they have 12 x-coins, but the first one was bought for €10 and the last one for €120, how do you calculate the acquisition cost?
There are two accepted methods: FIFO or weighted average. FIFO stands for ‘first-in, first-out’, which means the market price of the earliest x-coin purchased is taken into account. Weighted average is self-explanatory: it is the average of all the purchase prices.
So, I invented these coins myself, let’s call it Webinar-coin. Now, if I buy it for 20 euros today and sell it for 50 euros in January next year, I will have made a 30-euro profit. And since that profit was made in January of the following year, I will have to report it in the 2022 tax return, which is submitted in 2023.
