Understanding Crypto PnL (Profit and Loss)

Worked example

You buy 0.5 BTC at a price of 30,000 €. The current price is 60,000 €. Your cost basis is 15,000 € (0.5 × 30,000). Current value is 30,000 € (0.5 × 60,000). Your PnL = +15,000 € or +100%.

Key terminology

  • PnL (Profit and Loss): the difference between the current value of your position and your acquisition cost.
  • Unrealized gains: PnL as long as you have not sold. It fluctuates in real time with the market.
  • Realized gains: the profit or loss locked in once the sale is completed.
  • Cost basis: the total amount you paid to acquire your tokens.

Tip: your PnL changes in real time. It only becomes a real gain or loss at the moment you sell.