How can I calculate realized gains and losses in my cryptocurrency portfolio?

1 answers

• Golnaaz MirzaeeFeb 01, 2021 · 5 years ago
  Calculating realized gains and losses in your cryptocurrency portfolio is crucial for understanding your investment performance. Here's a step-by-step guide: 1. Determine the cost basis of each cryptocurrency asset you own. This includes the purchase price and any associated fees. 2. Track your sales or disposals of cryptocurrencies. For each sale, subtract the cost basis from the sale price to calculate the capital gain or loss. 3. If the sale price is higher than the cost basis, you have a capital gain. If it's lower, you have a capital loss. 4. Add up all the gains and losses from your sales to get the total realized gains or losses in your portfolio. Remember to keep accurate records of your transactions for tax purposes. If you need further assistance, you can consult with a tax professional or use portfolio management tools like BYDFi to simplify the process.
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