Calculating profit and loss on cryptocurrency trades requires accounting for both the price change and the fees charged by exchanges. Most platforms charge a percentage fee on each trade, which can significantly impact your returns, especially on frequent or small trades.

The formula is: Net Profit = (Sell Price x Quantity - Sell Fee) - (Buy Price x Quantity + Buy Fee). ROI expresses your profit as a percentage of your total investment cost. Tracking these numbers across all trades helps you evaluate your strategy and understand your true performance after fees.

• done_all Fee Impact: Even small fees of 0.5% on each side can reduce your total profit by 1% or more per round-trip trade.
• done_all Tax Implications: Crypto gains are taxable events. Short-term gains are taxed as ordinary income; long-term gains get preferential rates.
• done_all Cost Basis: Track your purchase price carefully for tax reporting. Use FIFO, LIFO, or specific identification methods.
• done_all Volatility: Crypto markets are highly volatile. Always consider risk management and position sizing before trading.