What is the definition of realized gain in the context of cryptocurrency?

3 answers

• Nov 24, 2021 · 3 years ago
  Realized gain in cryptocurrency refers to the profit made from selling a cryptocurrency asset after it has been held for a certain period of time. It is the actual gain that is realized when the asset is sold. On the other hand, unrealized gain refers to the increase in value of a cryptocurrency asset that has not been sold yet. It is the potential gain that exists on paper but has not been realized through a sale. Realized gain is considered taxable in many jurisdictions, while unrealized gain is not taxed until the asset is sold. It's important to keep track of both realized and unrealized gains for tax purposes and to understand the overall performance of your cryptocurrency investments.
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• Nov 24, 2021 · 3 years ago
  Realized gain in the context of cryptocurrency is the profit you make when you sell a cryptocurrency asset that you have held for a certain period of time. It is the actual gain that you have realized by selling the asset. On the other hand, unrealized gain is the increase in value of a cryptocurrency asset that you still hold and have not sold yet. It is the potential gain that exists on paper but has not been realized through a sale. Realized gain is important to consider for tax purposes, as it may be subject to capital gains tax. It's always a good idea to consult with a tax professional to understand the tax implications of your cryptocurrency investments.
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• Nov 24, 2021 · 3 years ago
  Realized gain in the context of cryptocurrency refers to the profit made from selling a cryptocurrency asset that has been held for a certain period of time. It is the actual gain that is realized when the asset is sold. Unlike unrealized gain, which is the increase in value of an asset that has not been sold, realized gain is the tangible profit that you can actually use. When you sell a cryptocurrency asset and make a profit, that profit is considered a realized gain. It's important to keep track of your realized gains for tax purposes and to understand the overall performance of your cryptocurrency portfolio. Remember to consult with a tax professional to ensure compliance with tax regulations in your jurisdiction.
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