Whether you are working as an investor in the New York stock market, or either that you’re working as a trader in Forex, or you’re a crypto enthusiast and want to calculate crypto gains and losses in the market. Learning how to calculate crypto gains in the market is an essential trick.

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This article is about How to calculate crypto gains in crypto. There are different reasons for one to calculate their gains and losses in the market. Here we will explain those reasons to find out why it’s a necessary step of the way. Then we will cover some methods from which you can calculate crypto gains.

How to calculate crypto gains?

Calculating your gains can be very definitive in the course of your trading. It can play a major role in many different ways. Before we go over the methods you can use to calculate crypto gains, let’s find out what are the reasons for you to calculate crypto gains in the first place. 

Why would you want to calculate crypto gains?

To find out if you are profitable:

There are many different reasons why you might want to calculate crypto gains. One of them is if you are a trader you might want to get insights on “how well you’re doing”. It means that you might want to know whether or not your trading is profitable. Whether or not your trading strategy is working for you. And if your investments are paying off.

For example, If after calculating your profits you found out that in the last month you have lost 200$ trading on Bitcoin, you may want to change your strategy from price action to a volume-based strategy. Or to just make some changes in your price action based strategy. So, as you can see, calculating your profits helps you figure out if you are a profitable trader or not.

To calculate crypto taxes:

There are some countries in which the government hasn’t yet started charging individuals taxes for their activities in the crypto market. But if you aren’t living in those countries then you may want to calculate crypto gains. So you’ll know how much you have to pay for crypto taxes.

Whether or not you are a newbie in the crypto industry, or you have been working in the market for months or years, calculating your crypto taxes can be difficult and even overwhelming at times. 

There are other ways in which you can know how much you have to pay for crypto taxes. Such as getting help from an accountant to calculate crypto gains. As a matter of fact, when you’re filing your yearly tax returns, an accountant can help you figure out how much are your crypto gains. Nevertheless, knowing how to calculate crypto gains can still be very helpful as you would have an idea of exactly how much you owe to the government. 

To keep track of your income:

Another reason that you might want to know how to calculate crypto gains is to keep track of your income and expenses. That’s right! 

If you are the type of person who would calculate and keep the records of their expenses, and their incomes so they would have an idea of how much they have to save or how much they need to save for them to reach their financial goals, you need to know how to calculate crypto gains.

To avoid losing your assets:

By calculating crypto gains and keeping records of them and keeping them in check now and then, you’ll make sure that you exactly know where you’re going. 

If you have gained a lot in the past month, maybe it’s time to move those profits out of the trading wallet or exchange them for stable coins to make sure you won’t lose your profits. 

Or if you have lost money in the past month you should stop trading. Maybe start figuring out where you’ve gone wrong and what steps you need to take to make it right. From that, you can become profitable in the next few months.

Now that we have learned the reasons why someone would want to learn how to calculate their gains in crypto, it’s time we move on and cover some ways in which you could calculate crypto gains.

How can I calculate crypto gains?

Calculating your capital gains in the crypto market is a relatively easy process if you know what you’re doing. In the first method, we’ll teach you how to calculate crypto gains manually. Which takes more time but still, this is the method we recommend you to learn. As it can come in handy in the future. The second method is quite easy and you almost don’t need to do anything. It’s more of a method which can help you calculate if you’re in a hurry.

So, let’s begin.

The first method consists of 3 easy steps. By the fourth step, you would know how much you have gained or lost in the crypto market.

But first, let’s explain capital gain. The capital gain or loss is the difference between the amount of money you paid to buy an asset and the amount of money you gained when selling the asset.

1. find out the cost basis:

The first step is to find out exactly how much money you have paid to acquire the tokens you want to calculate the gains of. If the tokens were gifts and you didn’t pay any money to get them, then you should use the market price of the cryptocurrency on the day you received them. This is called cost basis. 

Now that you know the cost basis, we should continue with the next step.

2. calculate the difference:

Now that you know your cost basis, you should go ahead and subtract it from the price of the crypto when you sell it or dispose of it in any other way. Whether you have gained or lost capital, doesn’t affect this process in any way.

3. figure out how much your tax is:

If you have gained capital, you need to pay tax for the amount of capital that you have gained. Even if it was lost capital, you might still want to keep track of them too. 

You can use the capital losses to offset capital losses against capital gains to reduce the amount of money you need to pay for crypto taxes. 

The second method is much easier. You simply can use any of the gains calculators online to figure out your gains in crypto. 

calculate crypto gains

This is what a crypto gains calculator looks like. You simply enter the amount that you paid to acquire the tokens, then define the token itself and press calculate. The results will be shown to you in no time.

We recommend you go over the first method and learn how to calculate crypto gains. This will come as helpful in many situations. 


How much CGT will I pay on cryptocurrency?

You do not need to pay any taxes for your crypto when you acquire the tokens. Only when you are disposing of your crypto do you need to calculate crypto gains. To know how much you have to pay as your Crypto Gains Taxes.

Do I pay taxes on crypto if I don’t sell?

Purchasing crypto tokens isn’t a taxable event. There must be a taxable event for you to need to pay taxes for your cryptocurrency. If you want to sell them for example, you need to calculate crypto gains and pay taxes if you’ve made a profit.

Is Coinbase earn taxable?

If you’re working with an exchange in a way that they pay you 600$ or more they need to report these payments to the IRS as an “other income”. So whether or not Coinbase earn is taxable depends on how much you make off of it.

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