What Is PnL? A Guide to Bitkub Exchange's New Crypto Profit and Loss Feature
Bitkub Exchange has introduced a new Profit and Loss (PnL) feature, making it easier for users to monitor the unrealized gains and losses of their digital asset holdings.
Available through the Wallet page on both the Bitkub Exchange mobile application and website, the feature provides an overview of portfolio-level performance alongside detailed information for individual assets. Users can view their average acquisition costs and unrealized profits or losses, expressed in both Thai baht (THB) and percentage terms.
What Is PnL, and Why Does It Matter in Crypto Investing?
PnL stands for Profit and Loss, a financial metric used to assess the difference between an asset's value and its associated cost. In cryptocurrency markets, where prices can fluctuate significantly, monitoring PnL helps investors better understand the financial position of their holdings.
Whether holding Bitcoin (BTC), Ethereum (ETH), or other digital assets, investors can use PnL data to evaluate how the current market value of their holdings compares with their acquisition costs.
PnL generally falls into two main categories:
Realized PnL: The profit or loss recognized when an asset is sold, calculated by comparing the proceeds from the sale with the associated costs.
Unrealized PnL: The difference between the current market value and the cost basis of an asset that remains in a portfolio. This figure fluctuates as market prices change.
In its initial rollout, Bitkub Exchange's PnL feature displays Cumulative Unrealized PnL, representing the aggregate unrealized gains or losses of digital assets currently held by a user.
The calculation excludes profits or losses from assets that have already been sold.
What Can You Do With Bitkub's PnL Feature?
Bitkub Exchange developed the PnL feature to give users greater visibility into their digital asset costs and unrealized gains or losses.
The feature provides three key functions.
1. Track Cumulative Unrealized PnL Across Your Portfolio
Users can view the combined unrealized gains or losses of all digital assets currently held in their Wallet.
The system displays the total amount in Thai baht and as a percentage relative to the combined cost basis of the digital assets still held.
This provides a consolidated view of how the current market value of a user's digital asset holdings compares with their remaining acquisition costs.
2. View Profit and Loss for Individual Cryptocurrencies
Beyond the overall portfolio view, users can examine unrealized PnL for individual assets, including BTC, ETH, and other cryptocurrencies in their Wallet.
For each asset, the system calculates the difference between its current market value and its cost basis, displaying the result in both THB and percentage terms.
This breakdown allows users to assess the financial position of each digital asset separately.
3. Check the Average Acquisition Cost of Your Assets
For users who purchase the same cryptocurrency multiple times at different prices, the average acquisition cost is an important reference point.
Bitkub's PnL feature displays the Average Price of assets currently held, calculated using the remaining cost basis under the First-In, First-Out (FIFO) accounting method.
This allows users to compare their average acquisition cost with the current market price more conveniently.
How Does Bitkub Calculate PnL?
Bitkub Exchange calculates PnL using the First-In, First-Out (FIFO) method, which assumes that the earliest acquired units of an asset are the first to be removed from the cost basis when a portion of the holdings is sold or withdrawn.
When users sell or withdraw part of their holdings, the system deducts the cost basis of the earliest acquired units first. The remaining cost basis is then used to recalculate the average acquisition cost of the assets still held.
For each cryptocurrency, unrealized PnL is calculated using the following formula:
PnL (THB) = (Current Market Price − Average Acquisition Cost) × Quantity Held
Example of a PnL Calculation
Suppose a user holds 0.1 BTC with an average acquisition cost of THB 2,000,000 per BTC, while the current market price is THB 2,200,000 per BTC.
The calculation would be:
(2,200,000 − 2,000,000) × 0.1 = +THB 20,000, or +10%
This means the current market value of the user's Bitcoin holdings exceeds their cost basis by THB 20,000 at the market price used in the calculation.
However, this amount represents an unrealized gain rather than an actual profit, as the Bitcoin has not yet been sold.
The cost basis used by the system includes purchase transaction fees, except for fees paid using Fee Credit.
For transactions involving USDT trading pairs, the system records the acquisition cost in Thai baht using the prevailing USDT/THB exchange rate at the time of the transaction.
How to Check PnL on the Bitkub App and Website
Users can access PnL information through the Wallet page on both the Bitkub Exchange mobile application and website.
How to View PnL on the Bitkub App
Open the Bitkub application and log in to your account.
Select Wallet from the bottom navigation menu.
View your Cumulative PnL, which displays the unrealized gains or losses of your current digital asset holdings.
Tap the cryptocurrency you want to examine to view its average acquisition cost and cumulative unrealized PnL.
How to View PnL on the Bitkub Exchange Website
Log in to the Bitkub Exchange website.
Click the Wallet icon in the upper-right corner and select My Wallet.
View your cumulative PnL information on the portfolio overview page.
To examine an individual asset, click the three-dot menu next to the relevant cryptocurrency and select View Details.
PnL figures reflect the information loaded by the system at the time of viewing and are not updated through real-time streaming. Users can refresh the page to retrieve the latest available data.
Important Things to Know About Bitkub's PnL Feature
Although the PnL feature makes it easier to monitor digital asset holdings, users should understand several important limitations.
Displayed PnL Does Not Represent Total Profit or Loss Since Account Opening
Cumulative Unrealized PnL reflects only digital assets that remain in a user's holdings.
It does not include realized gains or losses from cryptocurrencies that have already been sold.
Thai Baht Balances Are Excluded From PnL Calculations
Although THB balances are included in the total value of assets displayed in the Wallet, they are not treated as part of the cost basis when calculating the portfolio's PnL percentage.
Deposited Cryptocurrencies May Have a Different Cost Basis From Their Original Purchase Price
When digital assets are deposited from another platform, the system records their cost basis using the market price at the time the deposit is successfully completed.
This may differ from the price originally paid for the assets on the originating platform.
Unrealized PnL Is Not the Actual Profit Received Upon Selling
The PnL displayed represents an estimate based on the difference between the current market value and the recorded cost basis.
Actual realized profits or losses depend on the execution price of the completed trade and any applicable transaction fees.
Note: PnL information is provided solely as a preliminary reference for assessing digital asset holdings. It does not constitute a financial or tax report, nor should it be considered investment advice. Displayed figures may change or differ from actual trading results. Cryptocurrencies and digital tokens carry substantial risks, and investors may lose their entire investment. Investors should carefully review relevant information and assess the risks before making investment decisions.
Disclaimer: Cryptocurrency and digital tokens involve high risks; investors may lose all investment money and should study information carefully and make investments according to their own risk profile.
Past Returns does not guarantee future returns/performance.