Why a higher Binance balance doesn’t always mean you made a profit

Earlier than judging your Binance account’s performance, separate money you added from money the account earned.

Here’s a hypothetical instance, using USD values all through:

• You begin with an empty account and deposit $2,000.
• Later, you deposit one other $1,500.
• Your present internet account worth is $three,000.
• You haven’t withdrawn anything.

Your stability rose from $2,000 to $three,000. However your complete contribution was $3,500, so your account result is a $500 loss.

For an account measured from its empty start line:

Current internet account worth + external withdrawals - external deposits = lifetime account outcome.

When reviewing Binance data, the account boundary matters. A transfer from Spot to Futures strikes cash inside your Binance account. Counting it as another deposit when reviewing the whole account would double-count the same funds.

A couple of other checks help:

• Embrace all wallets inside the account boundary you selected.
• Use a consistent reporting foreign money.
• Account for related liabilities when calculating internet value.
• Don’t subtract fees once more if they're already reflected in ending fairness.
• Keep in mind that the end result consists of modifications in open holdings, so it differs from realised trading revenue.

For a monthly assessment, subtract the opening internet account worth as nicely.

This provides a monetary end result. A significant proportion return additionally needs to account for when deposits and withdrawals occurred.

When reconciling your Binance historical past, which causes probably the most confusion: inner transfers, charges, funding funds or open positions?

Disclosure: That is Robod’s official account, an unbiased crypto research and account analytics platform. We aren't affiliated with Binance.