Realized PnL

Unrealized PnL

Unrealized PnL (Profit and Loss) is the gain or loss on an open position that has not yet been closed — it exists only on paper until you sell. It fluctuates with the market price, carries no tax consequence until realized, and on leveraged perpetual futures platforms directly affects your margin and liquidation risk.

Cost Basis

Cost basis is the weighted average price you paid for an asset across all your purchases. It determines your profit or loss when you sell and is essential for accurate tax reporting in most jurisdictions. DCA naturally smooths your cost basis by buying at many different prices over time.

Crypto Tax Basics

In most jurisdictions, crypto is taxed as property, meaning every trade, swap, or sale is a taxable event triggering capital gains or losses. Long-term holdings (1+ year in the US) qualify for lower capital gains rates. DeFi income, staking rewards, and mining income are typically taxed as ordinary income.

Exit Strategy

An exit strategy is a pre-defined plan for selling a crypto position — specifying the conditions, price levels, or signals that trigger taking profits or cutting losses. Having a written exit plan before entering a trade eliminates emotional decision-making during high-volatility market moves.

Dollar-Cost Averaging Out (DCA Out)

Dollar-cost averaging out is the reverse of DCA — systematically selling a fixed portion of a position at regular intervals to take profits gradually. It removes the pressure of timing the exact top and locks in gains across multiple price points.

Profit-Taking Strategy

A profit-taking strategy is a predefined plan for when and how to sell winning positions. It includes specific rules for partial exits, price targets, and reallocation of proceeds — designed to convert unrealized gains into real profits before market reversals erase them.