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.

Right here’s a hypothetical instance, utilizing USD values all through:

• You start with an empty account and deposit $2,000.
• Later, you deposit one other $1,500.
• Your present internet account value is $3,000.
• You haven’t withdrawn anything.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's a $500 loss.

For an account measured from its empty start line:

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

When reviewing Binance data, the account boundary issues. A switch from Spot to Futures moves money inside your Binance account. Counting it as another deposit when reviewing the entire account would double-count the identical funds.

A number of other checks assist:

• Embrace all wallets inside the account boundary you chose.
• Use a consistent reporting foreign money.
• Account for related liabilities when calculating internet value.
• Don’t subtract fees again if they are already mirrored in ending fairness.
• Keep in mind that the outcome consists of modifications in open holdings, so it differs from realised trading revenue.

For a monthly evaluate, subtract the opening internet account worth as properly.

This provides a monetary outcome. A significant proportion return also must account for when deposits and withdrawals happened.

When reconciling your Binance history, which causes probably the most confusion: inner transfers, fees, funding payments or open positions?

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