Understanding how your cryptocurrency investments are performing is essential—whether you're a beginner or an experienced trader. At CoinMarketCap (CMC), the Portfolio Tracker is designed to give you a clear, accurate view of your investment returns by combining real-time market data with your transaction history.
In this guide, we’ll break down how CMC calculates your portfolio profits, including the difference between realized and unrealized gains, the formulas used, and practical examples to help you interpret your results. By the end, you’ll have a deeper understanding of the metrics behind your crypto performance.
👉 Discover how real-time tracking can transform your investment strategy.
Key Components of Profit Calculation
CMC’s profit calculation system relies on three core data points:
- Purchase records: Every time you buy crypto, the system logs the amount, price per unit, and associated fees.
- Sale records: When you sell, it tracks the quantity sold, sale price, and transaction fees.
- Live market prices: Current values are pulled from real-time data sources to reflect up-to-the-minute valuations.
These elements work together to compute both actual gains (realized) and potential gains (unrealized), giving you a comprehensive snapshot of your portfolio's health.
Realized vs. Unrealized Profit
One of the most important distinctions in crypto investing is between realized and unrealized profit.
Realized Profit
This is profit from assets you’ve already sold. It’s “in the bank” — no longer subject to market swings.
For example:
- You buy 1 ETH for $2,000.
- Later sell it for $3,000.
- Your realized profit is $1,000 (minus fees).
Unrealized Profit
This refers to gains on assets you still hold. While they appear profitable based on current prices, these gains aren’t locked in until you sell.
For example:
- You own 2 BTC purchased at an average of $40,000 each.
- Current price: $60,000.
- Your unrealized profit: $40,000 (2 × $20,000 gain).
Market volatility means this number can change rapidly — so treat unrealized gains as potential, not guaranteed.
👉 See how tracking unrealized gains can improve your trading decisions.
Core Formulas Behind the Metrics
CMC uses precise mathematical models to ensure accuracy across thousands of users and cryptocurrencies. Here’s a breakdown of the key calculations:
1. Average Buy Price
The average price per unit paid for a cryptocurrency, excluding fees.
Formula: Total amount spent (excluding fees) ÷ Total quantity purchased
This helps determine your break-even point for each coin.
2. Cost Basis
The total investment in a cryptocurrency, including purchase fees.
Formula: Σ(Buy Price × Amount) + Σ(Buying Fees)
Used as the foundation for calculating overall profit.
3. Average Buy Cost
Similar to average buy price but includes fees — giving a more realistic cost per unit.
Formula: Total cost (including fees) ÷ Total quantity purchased
Helps assess true profitability when compared to current market value.
4. Realized Profit
Profit generated from completed sales.
Formula:
(Sale Price × Amount Sold) − [(Cost Basis ÷ Total Purchased) × Amount Sold] − Selling Fees
All individual sale profits are summed into your total realized profit.
5. Unrealized Profit
Potential profit on current holdings.
Formula:
(Current Market Price × Amount Held) − [(Cost Basis ÷ Total Purchased) × Amount Held]
Fluctuates with market movements.
6. All-Time Profit
Your total profit across all positions — both realized and unrealized.
Formula: Realized Profit + Unrealized Profit
This is the big-picture number that answers: Have I made money overall?
7. P&L% (Profit and Loss Percentage)
Shows return on investment as a percentage.
Formula: All-Time Profit ÷ Cost Basis
Useful for comparing performance across different portfolios or timeframes.
Practical Example: Step-by-Step Calculation
Let’s walk through a real-world scenario:
- Buy 1 BTC for $10,000 + $50 fee
- Buy 0.5 BTC for $6,000 + $30 fee
- Sell 0.75 BTC for $12,000 − $60 fee
- Current BTC price: $18,000
Calculations:
- Total BTC Purchased: 1.5 BTC
- Total Spent (with fees): $10,050 + $6,030 = $16,080
- Cost Basis: $16,080
- Average Buy Cost: $16,080 ÷ 1.5 = **$10,720/BTC**
Now calculate:
- Realized Profit:
($12,000) − (0.75 × $10,720) − $60 = **$3,900** - Unrealized Profit (on remaining 0.75 BTC):
(0.75 × $18,000) − (0.75 × $10,720) = $5,460 - All-Time Profit: $3,900 + $5,460 = $9,360
- P&L%: $9,360 ÷ $16,080 ≈ 58.21%
You’ve earned nearly 58% return on your total investment so far.
Handling Transfers: In and Out
Transfers between wallets or exchanges don’t count as buys or sells — but they affect your holdings.
Example:
- Transfer in 2 BTC at $62,000 each → valued at $124,000
- Sell 1 BTC for $30,000 − $10 fee
- Transfer out remaining 1 BTC
After sale:
- Unrealized Profit: $62,000 (value of held BTC)
- Realized Profit: $30,000 − $10 = $29,990
- All-Time Profit: ~$91,990
After transfer out:
- No coins left → Unrealized Profit = $0
- Realized Profit remains: $29,990
- Final All-Time Profit: $29,990
Transfers update your position size but don’t trigger profit events unless a sale occurs.
Tips for Maximizing Accuracy
To get the most reliable profit insights:
- Log all transactions: Include every buy, sell, and fee.
- Use tags: Label investments by strategy (e.g., “long-term,” “trading”) for better analysis.
- Review regularly: Monitor trends over time without overreacting to short-term swings.
- Focus on percentages: A 10x gain on a small investment may look impressive in dollars but less so in portfolio impact.
Frequently Asked Questions
Q: Why did my profit change even though I didn’t trade?
A: Your unrealized profit fluctuates with market prices. Even without activity, price changes affect the value of your holdings.
Q: Are transaction fees included in profit calculations?
A: Yes. Buying fees increase your cost basis; selling fees reduce your proceeds — ensuring accurate net profit reporting.
Q: Can I view performance over specific periods like 7 days or 30 days?
A: Yes. The Portfolio Tracker supports multiple timeframes — including 24h, 7d, 30d — to analyze short- and long-term trends.
Q: Does transferring crypto affect my profit?
A: Transfers don’t create profit/loss directly but change your holding balance, which impacts unrealized gains.
Q: Is the average buy price adjusted after partial sales?
A: Yes. The average is based only on purchase history and remains unchanged after sales — ensuring consistent cost tracking.
Q: What happens if I have multiple purchases at different prices?
A: CMC uses a weighted average method across all buys — so your cost basis reflects your true blended entry point.
👉 Start visualizing your crypto growth with precision tools today.
Final Thoughts
CoinMarketCap’s Portfolio Tracker simplifies complex crypto accounting by automating calculations for realized and unrealized profits, cost basis, and return percentages. While markets remain volatile and unpredictable, having transparent, accurate data empowers smarter decision-making.
Remember: These numbers are tools — not guarantees. Always combine platform insights with independent research and professional advice when making significant financial choices.
By understanding how profits are calculated, you gain more control over your investment journey — turning raw data into actionable strategy.