What are realized gains and losses in the context of cryptocurrency trading?

1 answers

• selena senaMay 22, 2025 · a month ago
  Realized gains and losses are an essential aspect of cryptocurrency trading. They represent the actual profits or losses you make when you sell your cryptocurrencies. To calculate realized gains or losses, you subtract the cost basis (the amount you paid for the cryptocurrency) from the selling price. If the result is positive, you have a realized gain. If it's negative, you have a realized loss. Realized gains and losses impact your overall trading performance and can have tax implications. It's crucial to keep accurate records of your realized gains and losses for tax reporting purposes. Remember, every trade matters, so understanding and managing your realized gains and losses is key to successful cryptocurrency trading.
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