Crypto Gains

Definition ∞ Crypto gains represent the increase in value of a cryptocurrency or digital asset from its acquisition price to its current market price. These gains are typically realized when an asset is sold for more than its purchase cost. Calculating and reporting these gains is a critical aspect of managing digital asset portfolios and fulfilling tax obligations.
Context ∞ Discussions around crypto gains are frequently tied to market performance and investor sentiment. News cycles often focus on periods of significant appreciation, investor profitability, and the associated tax implications. Understanding the mechanisms for realizing and accounting for these gains is pertinent for participants navigating volatile digital asset markets.