Profit and Loss
Profit and loss, or P&L, in the context of crypto, refers to the amount of profit or loss that an individual or organization has made on their cryptocurrency investments or trades over a specific period of time.
The initial investment, the cryptocurrency’s current market price, and any fees or commissions incurred throughout the buying and selling procedure must all be considered when calculating P&L in crypto investments, wich involves determining the difference between the amount paid for the cryptocurrency and the amount received when selling or exchanging it.
You make profit if the current value exceeds your cost basis. You experience a loss if the current value is less than your cost basis.
For instance: if an investor acquired 10 bitcoins at a price of $50,000 per bitcoin, and the latest market price of bitcoin is $60,000, the P&L might be calculated as follows:
P&L = ($60,000 – $50,000) x 10 – Fees
P&L = $100,000 – Fees
If the fees paid were $1,000, the total P&L would be $99,000.