What is the difference between unrealized gain and realized gain in the context of cryptocurrency?

3 answers

• deurOct 23, 2020 · 5 years ago
  Unrealized gain refers to the increase in value of a cryptocurrency investment that has not yet been sold. It represents the potential profit that an investor could make if they were to sell their holdings at the current market price. On the other hand, realized gain is the actual profit that is obtained when a cryptocurrency investment is sold. It is the difference between the selling price and the purchase price of the digital asset. Both unrealized gain and realized gain are important concepts for investors to understand as they assess the performance of their cryptocurrency holdings.
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• alzildanDec 23, 2022 · 3 years ago
  Unrealized gain and realized gain are two terms commonly used in the cryptocurrency world to describe the value of investments. Unrealized gain refers to the increase in value of a digital asset that has not been sold, while realized gain is the profit that is realized when the asset is sold. Think of it this way: unrealized gain is like the value of your house increasing over time, but you haven't sold it yet, so you haven't actually made any money. Realized gain is when you finally sell the house and make a profit. In the context of cryptocurrency, these terms are used to assess the profitability of investments and determine when it's a good time to sell.
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• SubawooDec 10, 2021 · 4 years ago
  Unrealized gain and realized gain are two important concepts in the world of cryptocurrency investments. Unrealized gain refers to the increase in value of a digital currency investment that has not been sold. It represents the paper profit that an investor holds until they decide to sell their holdings. Realized gain, on the other hand, is the actual profit that is obtained when the investment is sold. It is the difference between the selling price and the purchase price of the cryptocurrency. Understanding the difference between these two terms is crucial for investors to make informed decisions about when to sell their digital assets and lock in their profits.
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