OptimCoins: Understanding Realised and Unrealised Gains in Cryptocurrency
Understanding realised and unrealised gains in cryptocurrency helps investors distinguish changes in the value of assets they still hold from results arising when assets are sold or exchanged.
A portfolio may display a positive balance movement without the investor having completed a profitable sale. Equally, an investor may realise a gain and reinvest the proceeds without withdrawing money to a bank account.
For people using or considering OptimCoins, understanding these differences can make portfolio records easier to interpret and reduce confusion between account balances, investment performance and tax calculations.
This guide explains general concepts. Confirm OptimCoins’ current reporting features directly rather than assuming it provides every calculation or export described.
What Are Realised and Unrealised Gains?
Realised and unrealised gains describe different stages of an investment result.
Unrealised Gain
An unrealised gain arises when the current indicative value of an asset still held exceeds its recorded acquisition cost.
The gain changes as the market price changes. It has not yet been established through a disposal.
Realised Gain
A realised gain arises when an asset is disposed of for proceeds exceeding the cost allocated to that asset, using the relevant calculation method.
For simple portfolio tracking, a disposal may include a sale or exchange. The proceeds do not need to reach a bank account for a result to be realised.
Tax calculations follow specific rules and may differ from a platform’s performance figures.
1. Understand the Cost of the Assets You Hol d
Before calculating a gain, establish the acquisition cost of the relevant units.
Useful records include:
- Asset name.
• Quantity acquired.
• Purchase date and time.
• Purchase amount.
• Acquisition fees.
• Transaction currency.
• Australian-dollar value.
• Transaction reference.
“Cost basis” commonly describes an investment’s recorded acquisition cost. For Australian capital gains tax purposes, the relevant term is generally cost base.
A dashboard’s average purchase price should not automatically be treated as the correct tax cost base.
A Simple Purchase Example
Suppose an investor purchases an illustrative token:
- Units received: 100.
• Price per unit: A$10.
• Purchase amount: A$1,000.
• Acquisition fee paid separately in AUD: A$10.
• Total recorded acquisition cost: A$1,010.
For this simplified performance example:
Recorded cost per unit = A$1,010 ÷ 100
Recorded cost per unit = A$10.10
The example assumes all 100 units are received and includes the acquisition fee once.
2. Calculate an Unrealised Gain
An unrealised gain compares the current indicative value of the units still held with their allocated acquisition cost.
Unrealised result = Current indicative value − Recorded acquisition cost
Using the previous example:
- Units held: 100.
• Current reference price: A$13.
• Current indicative value: A$1,300.
• Recorded acquisition cost: A$1,010.
Unrealised gain = A$1,300 − A$1,010
Unrealised gain = A$290
This is an estimate at a particular valuation time.
It does not establish the amount the investor would receive after selling.
Why the Sale Result May Differ
The eventual proceeds may be affected by:
- Price movements before execution.
• The difference between buying and selling prices.
• Trading fees.
• Slippage.
• Available liquidity.
• Other applicable charges.
A displayed market value should therefore be distinguished from an executable sale quotation.
3. Recognise an Unrealised Loss
The same calculation can produce a negative result.
Suppose the 100 units fall to a reference price of A$8 each:
- Current indicative value: A$800.
• Recorded acquisition cost: A$1,010.
Unrealised result = A$800 − A$1,010
Unrealised loss = A$210
The loss remains unrealised while those units are held, under this simple performance framework.
However, holding the asset does not guarantee that its value will recover. An unrealised loss still represents a reduction in the current estimated value of the investment.
4. Calculate a Realised Gain After a Sale
For simplified performance tracking:
Realised result = Net sale proceeds − Allocated acquisition cost
Suppose the investor sells all 100 units:
- Gross sale proceeds: A$1,300.
• Sale fee paid in AUD: A$13.
• Net sale proceeds: A$1,287.
• Recorded acquisition cost: A$1,010.
Realised gain = A$1,287 − A$1,010
Realised gain = A$277
The A$277 figure is a simplified investment result before tax.
It differs from the earlier A$290 unrealised estimate because the sale fee reduces the proceeds.
5. Separate Partial Sales From Remaining Holdings
Selling part of a holding can leave both realised and unrealised results.
Using the same single purchase:
- Original holding: 100 units.
• Total recorded acquisition cost: A$1,010.
• Recorded cost per unit: A$10.10.
Suppose the investor sells 40 units at A$13 each:
- Gross proceeds: A$520.
• Sale fee paid in AUD: A$5.20.
• Net proceeds: A$514.80.
• Allocated acquisition cost: 40 × A$10.10 = A$404.
Realised gain = A$514.80 − A$404
Realised gain = A$110.80
The remaining holding is:
- Units still held: 60.
• Remaining recorded acquisition cost: A$606.
• Indicative value at A$13 per unit: A$780.
Unrealised gain on remaining units = A$780 − A$606
Unrealised gain = A$174
These calculations assume one acquisition lot and exclude potential future selling costs on the remaining units.
Realised and Unrealised Gains Compared
Aspect | Realised gain | Unrealised gain |
Assets involved | Units already disposed of | Units still held |
Valuation basis | Actual disposal proceeds | Current reference price |
Changes with later prices | The completed disposal result generally remains recorded | Changes as the holding’s value changes |
Cash withdrawal required | No | No disposal has occurred |
Fees | Relevant completed transaction costs affect the result | Future disposal costs may be excluded |
Australian tax treatment | Requires assessment under applicable rules | A price increase alone generally does not create a disposal-based capital gain |
A portfolio can contain both categories at the same time.
6. Understand Crypto-to-Crypto Exchanges
Exchanging one cryptocurrency for another should not disappear from the records simply because no Australian dollars were received.
For Australian investors holding crypto on capital account, the ATO explains that a crypto-to-crypto exchange involves disposing of one asset and acquiring another, creating a capital gains tax event for the asset disposed of. ato.gov.au
For example:
- Recorded cost of Token A disposed of: A$1,000.
• AUD value of Token B received: A$1,400.
• Fees: Ignored for this simplified illustration.
The illustrative disposal gain is A$400.
Record the acquisition of Token B separately using the appropriate transaction value and supporting information.
Do not carry Token A’s original purchase cost into Token B without assessing the applicable treatment.
7. Do Not Confuse Realised Gains With Withdrawals
A sale and a withdrawal are different activities.
An investor may sell crypto, realise a gain and leave the proceeds in the platform account.
They may also withdraw money that includes:
- Original invested capital.
• Sale proceeds.
• Previously realised gains.
• Other account funds.
The amount withdrawn does not identify the profit by itself.
Similarly, withdrawing an asset to another personally owned wallet should not automatically be recorded as a sale.
Keep trading activity and account movements separate.
8. Preserve Individual Purchase Records
Buying the same asset at different prices creates separate acquisition lots.
For example:
Purchase | Units | Recorded acquisition cost |
First purchase | 50 | A$500 |
Second purchase | 50 | A$750 |
Total | 100 | A$1,250 |
A weighted average of A$12.50 per unit can summarise the holding for some performance purposes.
However, a partial disposal requires a supported allocation of acquisition costs.
The units identified as disposed of and the method used can affect the reported result. Do not assume an app’s default average-cost method is appropriate for Australian tax reporting.
Keep the original lot records even when using a simplified portfolio summary.
9. Account for Fees Without Double Counting
Fees can change the cost of acquiring an asset, the proceeds from disposing of it and the number of units remaining.
Record:
- Fee amount.
• Fee currency or token.
• Associated transaction.
• Whether the reported total already includes the fee.
For example, if a sale export already reports net proceeds after fees, subtracting the same fee again understates the result.
Fees paid in crypto also reduce that asset’s balance and can require separate tax assessment.
Use a consistent performance method and retain sufficient detail for a separate tax calculation.
10. Use Australian-Dollar Values Consistently
A gain shown in US dollars or another crypto asset may differ from the result expressed in Australian dollars.
The ATO requires relevant crypto acquisition and disposal values to be converted into AUD when working out Australian tax outcomes. acquiring and disposing of crypto assets
Keep:
- Original transaction currency.
• Original transaction value.
• AUD equivalent at the relevant time.
• Valuation or exchange-rate source.
• Date, time and timezone.
Do not convert all historical purchases and sales using today’s exchange rate.
A USD-linked stablecoin is not equivalent to one Australian dollar, and its AUD value can change.
Keep Performance Figures Separate From Tax Calculations
A portfolio gain is not automatically the amount included in a tax return.
For Australian crypto investors, disposing of an investment can create a capital gain or loss. The applicable result depends on the relevant tax rules and transaction facts. ato.gov.au
Differences can arise from:
- Tax cost-base adjustments.
• The acquisition lots disposed of.
• Capital losses.
• Eligibility for applicable concessions.
• The nature of the investor’s activities.
• Transactions involving rewards or other income.
A market increase on an ordinary investment holding generally does not create a disposal-based capital gain merely because the price rose.
However, this should not be turned into the broader claim that all crypto tax obligations begin only when an asset is sold. Receipts and other arrangements may require separate assessment.
A registered tax agent can review the treatment relevant to the investor’s circumstances.
Understand Why a Realised Gain Can Coexist With a Falling Portfolio
A completed gain does not guarantee that the rest of a portfolio is profitable.
Consider this simplified example:
- Realised gains from completed disposals: A$500.
• Unrealised losses on remaining holdings: A$800.
Combined realised and unrealised result = A$500 − A$800
Combined result = −A$300
This assumes consistent acquisition records, the same reporting scope and period, and no omitted income or costs.
The example shows why reviewing only successful sales can give an incomplete picture.
Separate Deposits From Gains
Adding funds increases the account balance without creating an investment gain.
Suppose:
- Opening account value: A$2,000.
• Additional deposit: A$1,000.
• Closing account value: A$3,100.
• Withdrawals: None.
The balance increased by A$1,100, but the simplified result after allowing for the deposit is:
A$3,100 − A$2,000 − A$1,000 = A$100
That monetary result does not provide a return percentage adjusted for the timing of the deposit.
Deposits, withdrawals, investment income and trading results should remain identifiable in the records.
Create a Useful Gains Record
A spreadsheet or reporting tool should connect each calculation to its underlying transactions.
Field | Purpose |
Asset and quantity | Identifies the units involved |
Acquisition date | Preserves purchase history |
Acquisition-lot reference | Supports allocation on disposal |
Recorded acquisition cost | Provides the performance comparison |
Disposal date and proceeds | Records completed transactions |
Fees and fee currency | Explains transaction costs |
Remaining units and cost | Supports unrealised calculations |
Valuation time and source | Explains current holding estimates |
Transaction identifier | Connects the calculation with evidence |
Keep original platform exports alongside the working record.
Reconcile calculated holdings with actual balances before relying on the gains figures.
What OptimCoins Users Should Confirm
Before relying on an OptimCoins dashboard or report, ask:
- Does the displayed gain cover one asset or the whole account?
• Is it realised, unrealised or a combination?
• Which acquisition-cost method is used?
• Are trading fees included?
• Which currency and valuation time are used?
• How are incoming transfers treated?
• Are deposits excluded from investment returns?
• Are crypto-to-crypto exchanges recorded?
• Can complete transaction histories be downloaded?
These questions do not establish that OptimCoins provides particular reporting features.
Confirm the definitions behind any displayed figure and maintain independent copies of important records.
Common Mistakes Investors Should Avoid
Common errors include:
- Treating the total sale proceeds as profit.
• Assuming unrealised gains are guaranteed future proceeds.
• Believing a gain is realised only after a bank withdrawal.
• Ignoring crypto-to-crypto exchanges.
• Using the full original purchase cost against a partial sale.
• Counting fees twice.
• Treating deposits as investment returns.
• Resetting acquisition costs after personal wallet transfers.
• Mixing AUD and USD values.
• Treating dashboard gains as a completed tax calculation.
Clear definitions and complete transaction records help prevent these mistakes.
Understanding Gains Does Not Predict Future Returns
Realised and unrealised figures explain recorded transactions and current valuations.
They do not predict what an asset will be worth next or guarantee that a displayed value can be obtained through a sale.
An unrealised gain can shrink or become a loss. Proceeds from a profitable sale can also be exposed to new losses if reinvested.
Review the figures alongside liquidity, fees, access conditions and the risks of the assets held.
Building a Clearer Understanding of Crypto Results
Realised gains relate to completed disposals. Unrealised gains relate to increases in the indicative value of assets still held.
For people using or considering OptimCoins, the practical starting point is to preserve acquisition records, record disposals accurately and understand how platform figures are calculated.
Keep performance tracking separate from tax reporting. This article provides general educational information; individual tax treatment should be reviewed with a registered tax agent.