Realised vs unrealised gain: what it means for crypto tax
An unrealised gain is a rise in value you have not locked in, you still hold the asset, and it is not usually taxed. A gain becomes realised, and potentially taxable, only when you dispose of the asset.
General information, not tax advice. Crypto tax rules differ by country and change over time, verify against your country's guidance or a qualified advisor.
An example
If Bitcoin you hold doubles but you do not sell, the gain is unrealised and untaxed. Sell, and the gain becomes realised and reportable.
Why it matters for your tax
This distinction shapes strategy: holding through volatility has no tax cost in itself, and you choose when to trigger a taxable event by choosing when to sell, swap or spend.
CryptaTax handles this automatically across your wallets and exchanges, so the concept is applied consistently without you tracking it by hand. Try the crypto tax calculator →
Related terms
See the full crypto tax glossary for every term, or the crypto tax guides for how they fit together.
FAQ
An unrealised gain is a rise in value you have not locked in, you still hold the asset, and it is not usually taxed. A gain becomes realised, and potentially taxable, only when you dispose of the asset.
See the crypto tax glossary for related terms, or the crypto tax guides for worked examples. Rules differ by country, so check your country's rules.