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What does an unrealized capital gain mean?

Understand the difference between a virtual gain and an actually collected gain, and how to view it in the app.

Written by Arthur
Updated this week

A capital gain is the profit you make when you sell your bitcoin at a higher price than you paid for it. Conversely, a capital loss occurs when you sell at a price below your purchase price.

An unrealized capital gain (also called a paper gain) means you have not yet sold your bitcoin. The gain is virtual: it can go up or down depending on the Bitcoin price.

The gain becomes realized only when you sell your bitcoin for euros and collect that gain — or loss.

This distinction matters for tax purposes: in many countries, taxes apply only to realized capital gains.

Consult a tax advisor to understand the rules that apply to your personal situation.

How to track the performance of your Bitcoin savings on Bitstack?

  1. Open the Bitstack app.

  2. Tap the Savings tab.

  3. Tap Bitcoin.

  4. Tap your position.

  5. View the Performance section: you will find your unrealized gains or losses there.

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