FIFO (first in, first out)

FIFO means ‘first in, first out’: first bought, first sold. The rule matters when you’ve bought bitcoin at different times, for example through a savings planGlossarySavings plan (Bitcoin savings plan)Automatically buying bitcoin at fixed intervals with a fixed amount, for example $50 a month. A savings plan takes the question of the right moment off your hands, but doesn’t promise a higher return.On the learning path: Stage 4 · Step 4 – Setting up a savings plan →In the glossary →×, and sell only part of it. You can’t tell from the bitcoin themselves which purchase was sold.

What the Finance Ministry specifies

In principle, each sale is matched to the purchase it belongs to (individual assessment). If that isn’t possible, the guidance letter of 6 March 2025 from Germany’s Federal Ministry of Finance (BMF) says:

• Holding period: the bitcoin bought first count as sold first (FIFO).
• Amount of the gain: as a rule, the average acquisition cost applies; as a simplification, you may use FIFO here too.
• Per wallet: the chosen method applies per wallet and stays in place until all the bitcoin in it have been sold.^[1]

Example

You buy 0.01 BTC in January 2025 and another 0.01 BTC in October 2025, both into the same wallet. In February 2026, you sell 0.01 BTC. Under FIFO, the January purchase counts as sold: held for more than a year, so the gain is not taxable.^[1] The bitcoin from October continue their own holding periodGlossaryHolding period (speculation period)In Germany, the gain from selling privately held bitcoin is tax-free if more than one year passes between purchase and sale (§ 23 EStG, as of September 2026). Each purchase has its own holding period.On the learning path: Stage 6 · Step 3 – Bitcoin & tax →In the glossary →×.

If you move bitcoin between your own wallets, note the date, amount and transaction ID – otherwise the order will be hard to prove later.^[1] The holding period calculator shows how FIFO affects your dates; it doesn’t replace tax advice.