Profit and Loss in Crypto" refers to how much money you've made or lost from your cryptocurrency investments or trades. Here's a quick breakdown of what that typically includes:
1. Basic Formula
Profit/Loss = Selling Price – Buying Price – Fees
If the result is positive: Profit
If the result is negative: Loss
2. Example
Let’s say you:
Bought 1 BTC at $80,000
Sold 1 BTC at $90,000
Paid $500 in transaction fees
P/L = $40,000 - $30,000 - $500 = $9,500 (Profit)
3. Real-World ConsiderationsFees: Exchanges charge trading and withdrawal fees
Taxes: Profits may be taxable depending on your country
Volatility: Prices can swing fast, so unrealized profit can quickly turn into a loss
HODLing vs. Trading: Long-term holding (HODL) may have different P&L results than day trading
4. Tracking Tools
Apps like CoinTracking, CoinStats, Koinly, or Delta help track your P&L automatically
Most exchanges also offer a "Trade History" or "PnL report"
Want help calculating P&L for your own trades or building a spreadsheet for it?
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