Frequently Asked Questions
How do you calculate crypto profit?
Crypto profit = (Sell Price - Buy Price) x Quantity - Fees. For leveraged trades, your effective position size is Margin x Leverage. A 5% price move with 10x leverage means a 50% gain or loss on your margin.
What fees should I include?
Include exchange trading fees (maker/taker, typically 0.02-0.1%), withdrawal fees, network gas fees for DeFi trades, and funding rates for perpetual futures. These can significantly impact profitability on smaller trades.
How does leverage affect profit?
Leverage multiplies both gains and losses. With 10x leverage, a 1% price move equals 10% P&L on your margin. While it increases potential profit, it also increases liquidation risk.
What is the break-even price?
Break-even is the price at which your trade has zero profit after all fees. It accounts for both entry and exit fees plus any additional costs. Knowing your break-even helps set realistic targets.
Should I track P&L in USD or BTC?
Most traders track in USD for tax purposes and real purchasing power. BTC-denominated P&L shows if you outperformed a simple buy-and-hold strategy. Both perspectives are valuable.