Realized vs unrealized Profit

understanding profit in stable coins vs crypto coins realised and unrealised profit explained when trading cryptocurrencies, it's important to understand the difference between realised and unrealised profit, especially when dealing with stable coins versus crypto coins many traders focus solely on the profit in usd or usdt value on their exchange, but this can be confusing without a clear understanding of the types of tokens in their portfolio if a trader is primarily holding stable coins, such as usdt, then their realised and unrealised profit will be calculated in terms of the stable coin value however, if they're holding cryptocurrencies like btc, eth, or algo, then their realised and unrealised profit will be calculated in terms of the crypto coin value realised profit refers to the profit a trader has made from a completed trade, while unrealised profit is the profit on open positions that have not yet been closed traders should understand the difference between the two and decide which profit they believe is the true profit by having a clear understanding of realised and unrealised profit, traders can make informed decisions and avoid confusion when trading with stable coins and cryptocurrencies let's first understand the difference between realised and unrealised profit in usd or usdt realised profit in usd/usdt realised profit is the amount of profit made from an investment for example, if a trader invested $1 in eth and after selling eth they made $2, their total realised profit is $1, and the total funds they have available in their usd wallet is $2 realised profit is fixed, meaning it will remain exactly the same the same logic applies to the grid assist tool, where each time it closes an order, known as a "transaction," it represents realised profit now, realised profit can be in btc or other tokens the trader has selected as their profit currency in this case, it is incorrect to assume the profit in usd value, as the underlying asset is in another currency, such as btc for example, if a trader made a profit of 0 1 btc, which is valued at about a thousand dollars in usd, a few hours or days later, 0 1 btc could be valued at $500 therefore, traders cannot count their profit in usd value, as the profit accumulation is being quoted from the underlying assets they are holding, such as eth, btc, xrp, etc unrealised profit in usd whenever traders see profit in usd on their exchange, it is unrealised profit this means that the yield is determined based on the current market price of all their holding assets this profit will fluctuate up and down because the profit accumulation is being quoted in usd from the underlying assets traders are holding, such as eth, btc, xrp, etc for example, let's suppose a trader's grid assist tool bought 100 mina (mina/usdt) tokens valued at $1 each a few days later, mina's price changed to $1 5, and the grid assist tool sold 50 mina in 50 different price levels, such as $1 11, $1 12, etc , which gave the trader a realised profit of, let's say, $25 since those transactions are closed however, the grid assist tool still holds 50 mina, which is yet to be sold at a slightly higher price range based on the current market price of mina, valued at $1 5, the trader's total 50 mina is valued at $75 as unrealised mina value on their exchange however, the grid assist tool will not consider this as realised profit, and unrealised profit will show less than $75 valuation on the exchange why? because the grid assist tool closed one order at a time, while the exchange just checks the trader's overall asset value therefore, it can be confusing to establish the true profit traders should check their total holding asset and total usd value to establish the difference another scenario is if the price of mina drops from $1 5 to $0 8 for 50 mina tokens in this case, the trader will have a negative unrealised further example, let's say the trader bought 50 mina tokens at $1 5 on an exchange at this point, the trader has an unrealized profit of $25 because 50 mina tokens ($1 5 $1) = $75 $50 = $25 however, if the price of mina drops to $0 8 per token, the trader's unrealized profit becomes negative the value of the 50 mina tokens is now $40 (50 mina tokens $0 8), which is less than the original cost of $75 therefore, the trader has an unrealized loss of $35 because $40 $75 = $35