What are realized and unrealized gains in the context of cryptocurrency?

1 answers

• Mar 20, 2022 · 3 years ago
  In the context of cryptocurrency, realized gains are the profits that you have made from selling your cryptocurrency at a higher price than what you paid for it. These gains are considered 'realized' because you have actually cashed in on them. On the other hand, unrealized gains are the profits that you have made on your cryptocurrency investments, but you haven't sold them yet. These gains are 'unrealized' because they are still on paper and subject to market fluctuations. It's important to note that unrealized gains can quickly turn into losses if the market takes a downturn. So, while it's great to see unrealized gains, it's important to be cautious and consider the potential risks before making any decisions.
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