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Unrealized Gains & Losses

Updated

Learn about unrealized gains and losses and how they impact your portfolio value.

Unrealized gains & losses represent the difference between the price paid for an asset and its current mid-market price. As such, it provides an investment performance snapshot at the portfolio and account level.

Examples

Emma bought 1 Bitcoin for $20,000. Assuming Bitcoin’s current mid market price is $40,000,

Emma has got an open gain of $20,000, represented as a percentage: +100%

Stewart bought 1 Bitcoin for $50,000. Assuming Bitcoin’s current mid market price is $40,000,

Stewart has got an open loss of $10,000, represented as a percentage: -20%.

The average price paid is calculated by dividing the total amount spent on coins by the total number of those coins owned.

Example

Emma bought 1 Bitcoin for $30,000. 

A couple days later, Emma buys 1 more Bitcoin at $40,000.

$70.000 divided by 2 equals $35.000, representing Emma’s average price paid per Bitcoin held on Uphold.

When depositing from a crypto network, we use the mid-market price of that asset at the time it hits your account. That price will be used to calculate the average price paid. The same applies when receiving funds from other Uphold users or when claiming funds from Interledger.

No, only confirmed deposits are included in any calculation.

No, unrealized gains are not taxable in the U.S. As a result, there is no reporting of unrealized gains (or unrealized losses) on your Form 1040.

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