The system distinguishes between two types of profit or loss:
Realised Profit (or Loss)
This refers to the actual gain or loss obtained through:
- the sale of cryptocurrencies
- the withdrawal of cryptocurrencies (treated as a sale for calculation purposes)
- the conversion into euros or stablecoins (e.g. BTC > USDC)
Calculation:
Difference between the selling/withdrawal/conversion price and the average purchase price.
- Fees are included in the calculation and treated as a loss.
- Conversions between cryptocurrencies (e.g. BTC > ETH) do not generate realised profit: the value is transferred to the new asset as an unrealised gain.
- Conversions into stablecoins (e.g. BTC > USDC) do generate realised profit, as they are treated like fiat conversions.
Example:
- Purchase: 0.5 BTC at €15,000 (€30,000/BTC)
- Sale: 0.5 BTC at €17,500 (€35,000/BTC)
- Realised profit = €17,500 - €15,000 = €2,500
Unrealised Profit (or Loss)
This is an estimate of the increase or decrease in value of held cryptocurrencies, calculated as the difference between the average purchase price and the current value.
Calculation:
Difference between the current value of the cryptocurrency and its average purchase price.
- Applies to crypto that has not yet been sold, withdrawn, or converted into fiat/stablecoin.
- Crypto-to-crypto conversions retain the profit as an unrealised capital gain.
Example:
- Purchase: 0.5 BTC at €15,000 (€30,000/BTC)
- Current value: 0.5 BTC = €17,500 (€35,000/BTC)
- Unrealised profit = €17,500 - €15,000 = €2,500
Average Purchase Price
The average purchase price is calculated using a weighted average. Each time you make a purchase, the system updates the average price based on:
- the total amount spent
- the total amount of cryptocurrency held
Key Features:
- Updates only when buying
- Does not change when selling, withdrawing, or converting
- Used to calculate both realised and unrealised profits
Examples:
- Selling price > average price → realised profit
- Current value > average price → unrealised profit
- Conversion BTC > ETH → gain remains unrealised
- Conversion BTC > USDC → gain becomes realised
- Transfer between wallets (e.g. Vault > Staking) → average price moves with the crypto
Related articles
- Managing performance with the P&L feature
- Definitions of potential profit, realised profit, and average purchase price
- Profits and losses: how to read the data in the Analytics section