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What does PNL mean in cryptocurrency trading?

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Abstract generation in progress

And why you should understand it right now.

When I started moving in the crypto world, I constantly came across these three letters: PNL. I confess that at first, I was quite confused.

PNL stands for “Profit and Loss” (Profit and Loss). Let's break it down simply:

Unrealized PNL: It is the gain or loss that exists only on paper while we maintain an open position. Imagine: I bought it for 3,000 and now it's worth 3,500. I have +500 in profit… but be careful, it's virtual until I sell.

PNL realized: When I finally close my position, that gain or loss is realized. If I sell at 3,500 what I bought at 3,000, my realized PNL will be +500.

The daily PNL: It reflects how today is going for me by adding up all my trades. 🟢 Green: I am winning ( at least today ) 🔴 Red: I am losing (maybe temporarily)

Personally, I believe that many beginners become too obsessed with daily PNL when they should focus on long-term results. I have seen too many traders panic over a red day and make hasty decisions.

It's not just a matter of “I won or lost”, but really understanding what's happening with our money at every moment.

📊 Current situation of the main pairs: BTCUSDT: 112,269.9 (+0.74%) ETHUSDT: 3,979.39 (+1.10%) BNBUSDT: 1,121.36 (+0.90%)

Have you checked your PnL this week? How has it been going for you? Tell me about your experience 👇

Notice: This does not constitute financial advice. It may contain sponsored content.

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