Realized and unrealized gains: keep the definitions separate

The idea in plain English

An unrealized gain is generally a valuation increase in an asset still held, relative to a chosen cost basis. A realized gain generally follows a disposal under the accounting method being used. Exact tax and reporting treatment is jurisdiction-specific, so do not treat a generic portfolio label as a legal conclusion.

The distinction that matters

Both calculations depend on reliable acquisition history, prices, fees and classification of transfers. Thinly traded assets may have an attractive displayed price that cannot be realized for the whole position. A chart can therefore show a gain that is difficult to turn into usable funds.

A practical example

In an invented example, ten units bought for $5 each are displayed at $8 each. The paper increase is $30 before costs. If selling all ten produces only $74 after execution effects and fees, the actual proceeds differ from the $80 screen valuation.

Try this without moving money

• Write down quantity, cost basis, reference price and estimated exit costs.
• Separate assets still held from completed disposals.
• Consult a qualified local adviser before using the figures for tax reporting.

A mistake to avoid

Do not assume transferring between your own wallets is automatically a sale, or that every platform applies the same cost-basis convention.

Before you act

Public records show particular addresses and transactions, not the whole financial life or intent of a person. Labels, valuations and profit calculations add assumptions. Treat an observation as evidence with a boundary. Do not identify an individual, copy a trade or accuse someone of misconduct from one address alone.