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The Beginner’s Guide to Measuring Crypto Profit and Loss

A beginner-friendly explanation of crypto profit and loss, including invested amount, current value, realized gains, unrealized gains, and withdrawals.

Jul 10, 20267 min readBy CryptoTrack
Beginner guide

Start with invested amount and current value

The simplest crypto profit and loss calculation compares what you invested with what the position is worth now. If you invested $1,000 and the current value is $1,250, the unrealized profit is $250.

That number is useful, but it is not the whole picture. It changes with live prices, and it may not include realized gains from previous sales or withdrawals.

Unrealized gains are not the same as realized gains

Unrealized gain is the profit that exists on paper while you still hold the asset. Realized gain is created when you dispose of the asset, such as selling or trading it.

This distinction matters for decision-making and tax reporting. A portfolio can look profitable on screen while still requiring careful lot and transaction records later.

Withdrawals make tracking harder

When you withdraw part of a position, you need to know how much quantity remains, what cost basis is still attached to the holding, and whether the disposal created gain or loss.

A basic portfolio value number cannot answer those questions by itself. You need transaction history.

How CryptoTrack helps

CryptoTrack gives each investment its own record, then rolls those records up into asset-level and portfolio-level profit and loss.

That makes it easier to see the big picture without losing the details that matter when you review performance or prepare tax reports.

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