How can I calculate my day P&L in cryptocurrency trading?

1 answers

• Jun 02, 2022 · 3 years ago
  Calculating your day profit and loss (P&L) in cryptocurrency trading is crucial for managing your trades effectively. One way to do this is by using the FIFO (First-In, First-Out) method. This method assumes that the first cryptocurrency you bought is the first one you sold. Start by determining the cost basis of each cryptocurrency you sold during the day. Multiply the quantity of each cryptocurrency by its respective buy price to get the total cost basis. Then, subtract the total cost basis from the total value of the cryptocurrencies you sold to calculate your day P&L. Keep in mind that this method may not be suitable for every trading strategy, so it's important to consult with a tax professional or financial advisor for personalized advice.
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