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Looking for an easy way to track your crypto gains and losses? Try CoinLedger — the portfolio tracker trusted by 400,000+ users around the world.
CoinLedger can connect your wallets and exchanges so you can see all of your gains, losses, and income at a glance!
CoinLedger uses industry-best practices to keep your data safe — including end-to-end encryption, virtual private cloud (VPC) with network access control lists (ACLs), and more!
With CoinLedger, you can track your gains, losses, and income from cryptocurrency completely for free! You’ll only pay if you want to download a tax report.
1. Choose the relevant cryptocurrency (ETH, BTC, etc.) This field is optional — you can simply enter the Buy and Sell Price.
4. Any relevant fees you paid to acquire your cryptocurrency should be entered in the field labeled ‘Investment Fee’. Any fees you paid to dispose of your crypto should be inputted in the field labeled ‘Exit Fee’. If you don’t have this information, you can leave these fields blank.
5. Once you’ve finished the steps above, you’ll be able to see your total gain/loss!
1. Enter your starting investment amount (ex. $1,000).
2. Enter the type of cryptocurrency (ex. Bitcoin, Ethereum, etc.)
3. Enter a starting date (ex. 09/23/2010)
Once you’ve inputted the relevant information, the What If Calculator will show your Return on Investment and what the current value of your investment would be if you held your cryptocurrency continuously!
Looking for an easy way to track your gains and losses from your entire crypto portfolio? CoinLedger makes it easier than ever to track your cryptocurrency across all your wallets and exchanges!
Just connect your wallets and exchanges to CoinLedger and the platform will automatically track your gains and losses for all of your crypto-assets!
CoinLedger takes steps to keep your data safe. The platform uses ‘Read Only’ API keys — meaning the platform can’t make any trades or move any assets on your account!
You can use the following formula to calculate your gains and losses in cryptocurrency.
In this case, your proceeds are the fair market value of your cryptocurrency at the time of disposal, minus the cost of any fees related to the disposal.
Meanwhile, your cost basis is the fair market value of your crypto at the time of receipt, plus the cost of any fees related to acquisition.
In the United States, cryptocurrency is subject to income and capital gains tax.
You can calculate your income based on the fair market value of any cryptocurrency you earned at the time of receipt. Examples of crypto income include mining, staking, and referral rewards.
You can calculate your capital gains based on the profit you made from disposing of cryptocurrency. Examples of crypto disposals include selling and trading away cryptocurrency.
Looking for an easy way to calculate your crypto taxes? Check out our free crypto tax calculator.
Before you reinvest your crypto profits, you should consider your unique financial situation. There are a few factors to consider.
While reinvesting your profits from cryptocurrency can potentially lead to a larger return in the future, some investors choose to hold their gains in cash or invest in less volatile assets — such as stocks and real estate.
It’s also important to remember that selling or disposing of crypto is subject to capital gains tax. You should be sure that you have the cash on hand to pay your tax bill before you reinvest your profits.
Generally, you should never invest more in cryptocurrency than you can afford to lose.
It’s important to remember that the ‘best percentage to take profit in crypto’ may differ for each investor. The exact number may depend on your specific situation and your specific risk preferences.
Many investors choose to measure their own returns against the S&P 500. Historically, the S&P 500 averaged a 11.88% annual return from 1957 to the end of 2021.
In general, the higher return that you aim for, the more risk that you take on. It’s important to remember that the cryptocurrency market is exceptionally volatile and that large price increases are sometimes followed by large price crashes. You should speak with a financial advisor if you’re considering selling your crypto.
Trying to calculate profits for other cryptocurrencies in your portfolio?
Explore more of our crypto profit calculators below.