What are the differences between realized gains and unrealized gains on Robinhood for cryptocurrency?

1 answers

• DianroanMar 03, 2021 · 4 years ago
  When it comes to cryptocurrency trading on Robinhood, realized gains and unrealized gains play a significant role in determining your overall profitability. Realized gains are the profits you have actually made from selling your cryptocurrencies, while unrealized gains are the potential profits you could make if you were to sell your holdings at the current market value. Realized gains are considered 'real' because the transaction has been completed and the profits are in your account. On the other hand, unrealized gains are not yet realized because you still hold the cryptocurrencies in your portfolio. These gains can fluctuate based on market conditions. It's important to note that unrealized gains are not guaranteed and can turn into losses if the market value of your cryptocurrencies decreases. Understanding the differences between realized gains and unrealized gains can help you make informed decisions about when to sell your cryptocurrencies and maximize your profits. Please note that this answer is provided for informational purposes only and should not be considered as financial advice. It's always recommended to do your own research and consult with a professional financial advisor before making any investment decisions.
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