Profit & Loss is an overview in your account showing the profits and losses from your investments. We've added this feature to our updated app, allowing you to see at a glance what your investments have yielded and how much you've benefited from the market. Profit & Loss, also known as PnL, is the ideal addition to enhance your current crypto experience.
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Anyone who invests in crypto, stocks, ETFs, or gold wants to know their profits and losses. Without a clear process for calculating profit or loss, crypto trading can become overwhelming. In crypto, PnL refers to calculating the profit or loss made on a crypto investment or position. This is an important indicator of an investor's or trader's performance.
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Terms such as realised and unrealised PnL are essential for gaining better insights into your profitability. We will explain these and other key concepts in more detail below.
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The Realised PnL is calculated after you have closed your position, meaning you've sold the crypto. Realised PnL only considers the actual selling price of the orders and does not account for the current market price. For example, if you buy Solana (SOL) at €70 and sell it at €105, your realised profit is €35. However, if you sell at €55, you incur a loss of €15.
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Unrealised PnL reflects the profit or loss on open positions that has not yet been finalized by closing the position. Suppose you bought ETH at €1,900 and the current market price is €1,600; then your unrealised loss is €300.
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To calculate PnL, you need to find the difference between the acquisition cost of a cryptocurrency and its current market value. There are different methods to do this:
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The FIFO method uses the price of the first unit of cryptocurrency you purchased. Suppose you bought 1 ETH at €1,100 and later another at €800, and you sell 1 ETH at €1,200. The purchase price of €1,100 is used to calculate the profit, so your profit is €100.
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In the LIFO method, the price of the most recently purchased unit is used. If you sell the same ETH at €1,200 but now use the last purchase price of €800, your profit is €400.
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With this method, you determine the average cost of all units in your portfolio. Suppose you bought 1 BTC for €1,500 and later bought another for €2,000. The average cost is then €1,750. If you sell 1 BTC for €2,400, your profit is €650.
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Regularly analysing open and closed positions helps track performance. When you buy a cryptocurrency, you open a position. Once you sell the coin, you close the position, allowing you to determine the profit or loss.
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The YTD method calculates the performance of your investments from the start of the year to the current date. Suppose you have €1,000 in Cardano (ADA) as of January 1, 2022, and €1,600 as of January 1, 2023. In this case, you have an unrealised gain of €600.
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In this method, you calculate the PnL for each transaction individually. For example, if you buy 1 ETH for €1,000 and sell it for €1,500, your profit is €500.
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This shows the PnL as a percentage of the original cost. If you buy 1 Solana (SOL) for €300 and sell it for €390, your profit is €90. Your percentage profit is 30% ((€90 / €300) x 100).
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In the updated app, it's easy for you as a user to gain insight into your profits and losses. You can find an overview per purchased asset as well as your total portfolio overview. This allows you to track each asset's performance in the market. You'll also find the ABP, or Average Buying Price, in the app. This shows the average price at which the assets were bought. Your PnL is refreshed every thirty seconds, so there may be some discrepancy with the prices in your wallet, which change every few seconds.
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Accurately calculating your profit or loss is crucial for gaining insights into your crypto investments. It helps you improve strategies and make informed decisions for future trades. In addition to manual calculations, tools like spreadsheets and automated trading bots can be useful for tracking performance and identifying profitable opportunities. Discover how PnL elevates your crypto experience in the updated Coinmerce app.

Disclaimer: Your PnL shows the daily and total profit and loss on your investments. The PnL is an estimation and no guarantee for your actual profits & losses.