for those who use cold wallets to store their crypto I was just wondering how do you exactly keep track of your cost average as well as knowing your DCA position. say you’ve transferred a bulk of coins to your cold wallet at £5 a coin but your average buy was £8 a coin, how would you know your new DCA If you keep accumulating on the exchange and then send them over to your cold wallet.
Posted by BasedToru
3 Comments
Excel.
THERE IS ABSOLUTELY NO REASON TO KEEP TRACK OF AVERAGE COST BASIS. STOP DOING IT.
Accounting for the cost basis on small transactions, is a nightmare. It can be slightly easier of it is all from one vendor.
Paper, excel, any sort of documentation helps. But if the institution you bought it from cannot verify in the future you probably won’t withstand tax authority scrutiny.