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What are the differences between unrealized and realized gains in the world of cryptocurrency?
THPApr 04, 2022 · 3 years ago1 answersCan you explain the distinctions between unrealized and realized gains in the context of cryptocurrency investments? How do these terms relate to the overall profitability of a crypto investment?
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- Unrealized gains and realized gains play a significant role in the world of cryptocurrency. Unrealized gains refer to the increase in value of your crypto holdings that you haven't sold yet. It's like having a winning lottery ticket in your hand, but you haven't claimed the prize. Realized gains, on the other hand, are the profits you've made by selling your cryptocurrency. It's like cashing in that winning lottery ticket and enjoying the rewards. Both unrealized and realized gains contribute to the overall profitability of your crypto investments, and it's important to track and manage them effectively to make informed decisions.Apr 04, 2022 · 3 years ago
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