When you send fiat to an exchange, use it ALL to buy bitcoin...

Raw JSON

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  "id": "fdb909bcc0bf652dec0caa4cd1ed12d191264b71320a1cc58bab2a9013c51f92",
  "pubkey": "fad6540c8f2fd2a16a25d0d82dd95d3bad7890d435d1690848a0a77d2883a447",
  "created_at": 1782304807,
  "tags": [
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      "Primal Android"
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  "content": "When you send fiat to an exchange, use it ALL to buy bitcoin, then completely empty the account by withdrawing the bitcoin.\n\nDon't trade, don't fuck around.\n\nThen you'll have a UTXO in your wallet and its cost base is exactly the fiat deposit amount. Every fee in-between is irrelevant if you do it this way.\n\nOne deposit, one UTXO - cost base is easy. Keep your withdrawal to over 500k sats if you can, otherwise do multiple small fiat deposits and they all are added to get your cost base (if you do a full withdrawal).\n\nThen if you decide to sell/spend any, you'll be in a good position to select the most cost effective UTXO to use, to minimise the tax that is being extorted from you.\n\nIt's best to use the per-parcel accounting method rather than first-in-first-out (FIFO), and stick with that one method.\n\nIf you don't keep track of your UTXOs properly, you'll have to default to FIFO method of accounting which is not great.\n\nNone of this is financial advice, because Bitcoin is a virtual currency, it's not real! 🤪 \n\n",
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