Cost basis and lots

Cost basis records the amount you paid for each purchase of cryptocurrency. The cost basis for Fidelity Crypto^® positions is recorded on a first in, first out (FIFO) basis. This means that you sell your crypto in the order in which you purchased your crypto.

The cost basis for Fidelity Crypto^® positions is recorded on a first in, first out (FIFO) basis. This means that your executed sell orders are paired to tax lots in the order in which you purchased your crypto. Check with a tax expert to determine how crypto transactions could affect your taxes. Fidelity does not provide legal or tax advice.

When you sell an investment that has lost money in a taxable account, you can generally claim a tax benefit. The wash sale rule prohibits investors from claiming the tax benefit when selling at a loss and buying the same (or substantially identical) investment within 30 days before and after the sale date. The rule applies to most of the investments you could hold in a typical brokerage account, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and options.

Digital assets like crypto are not subject to wash sale rules. Tax regulation can change, and you should always consult with a tax professional to understand any possible tax implications. Fidelity does not provide legal or tax advice.