A capital gain is the profit you make on the sale of your Bitcoin compared to your purchase price. We speak of a capital gain when you make a profit, and a capital loss when you make a loss.

The term “unrealized” means that your capital gain is still likely to vary according to the Bitcoin price. The term latent capital gain can also be used as a synonym for unrealized capital gain.

The capital gain becomes realized on the day you sell your bitcoins in euros, and definitively cash in your capital gain (or loss).

This distinction is important, not least for tax reasons, as taxes generally apply to realized capital gains, depending on the country.