Method to save taxes on crypto gains

Something to note is you can pick and choose whether you use FIFO or LIFO method for cost basis in Crypto. And it can change throughout the period as long as you can properly calculate it the IRS doesn’t have a problem with it.

For example: let’s say you bought 100 crypto at $1 in January. And you bought another 100 of same crypto at $1.50 in February. If you sold 100 at $2 in June, you can decide whether those 100 you’re selling are using a FIFO or LIFO basis. If it was FIFO, then you’d be paying taxes on a gain of $100. If LIFO, you’d only pay taxes on a $50 gain. And you could do the same process the other way around if you wanted to as well. Whatever is most advantageous for you.

I was going to pay taxes on 6k of gains, but after calculating FIFO vs LIFO, I will only pay on 3.5k of gains. Hope this is helpful to someone!

Edit: this is only for US tax laws. I don’t know about other countries.