Profit (profit) is gain, that is, the positive difference between income received and expenses incurred. In the cryptocurrency environment the term denotes the result of trading on an exchange, investing in coins and tokens, as well as the income from participating in various projects — staking, farming, mining and other types of activity.
It is important to distinguish "paper" (unrealized) profit from realized profit. Unrealized profit exists only on paper while the asset has not been sold: its market value has risen, but the funds have not yet been locked in. Realized profit appears only after a position is closed, when the result of the trade is finally fixed in the form of money or other assets.
When assessing profit it is reasonable to take into account the associated costs: trading fees, withdrawal fees, slippage and, in some jurisdictions, tax obligations. Only after deducting all costs can one speak of net profit. Cryptocurrency markets are highly volatile, so no result is guaranteed, and a sober assessment of risks remains an integral part of working with digital assets.
