Hello CryptoÉlite community! 👋🏻
We know that many of you are joining the crypto universe, and while it's exciting, it can sometimes feel like a maze with no exit. One of the questions we receive the most, and that is often not explained with the necessary clarity, is: "What the hell is PnL and why is my portfolio in red or green?"
Don't worry! Here I explain it without technicalities and with a friendly touch.
📊 What is PnL? (No complications!)
PnL stands for "Profit and Loss" in English, which in layman's terms means "Gains and Losses". It is the metric that tells you how much the value of your investments has increased or decreased.
🟢 PnL in Green:
You're "On Fire"! It means your investment is gaining value and you have profits. Time to celebrate!
🔴 PnL in Red:
Calm down, don't be scared! It means your investment has lost value. This is normal and not always a defeat. Markets go up and down. The important thing is to understand why.
💡 "Realized PnL" vs. "Unrealized PnL"
This is where many get confused and sell in panic.
Unrealized PnL:
It is the change in paper value of your assets. Your investment may be in the red, but you haven't lost money until you sell. If you sell at that moment, the loss is "realized". If you wait for the price to rise, your PnL can turn green again. Patience!
Realized PnL:
It is the gain or loss that is realized once you sell the asset. If you bought Bitcoin at $60K and sold it at $50K, your $10K loss is "realized". If you sell it at $70K, your $10K gain is "realized".
The example we all understand:
Imagine you bought some greens for a trip and the next day the value goes up. You have an "unrealized" gain. You don't have it in hand, but you know your purchasing power is greater. Only when you "burned" them on what you wanted did you "realize" that gain or loss. Simple, right? In Binance, PnL is the same.
Pro Tip! Don't obsess over daily PnL. Look at the big picture and have a strategy.
What questions do you have about PnL or any other topic? Leave it in the comments!
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#pnl #inversioninteligente #venezuela #EducacionFinanciera
