How do realized and unrealized gains affect my cryptocurrency investments?

1 answers

• Nov 25, 2021 · 3 years ago
  Realized and unrealized gains play a crucial role in determining the success of your cryptocurrency investments. Realized gains are the profits you make when you sell your cryptocurrencies, while unrealized gains are the profits you have made but have not yet cashed out. Realized gains are subject to taxation in most countries, so it's important to keep track of them and report them to the tax authorities. On the other hand, unrealized gains are not taxable until you sell your cryptocurrencies. Monitoring both realized and unrealized gains can help you make informed decisions about when to sell your cryptocurrencies and take profits or hold onto them for potential future gains.
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