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

Before judging your Binance account’s efficiency, separate money you added from money the account earned.

Here’s a hypothetical example, utilizing USD values throughout:

• You start with an empty account and deposit $2,000.
• Later, you deposit another $1,500.
• Your current internet account value is $three,000.
• You haven’t withdrawn anything.

Your stability rose from $2,000 to $three,000. But 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 value + exterior withdrawals - exterior deposits = lifetime account outcome.

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

A number of different checks assist:

• Embrace all wallets inside the account boundary you chose.
• Use a constant reporting foreign money.
• Account for related liabilities when calculating internet value.
• Don’t subtract charges again if they are already reflected in ending equity.
• Keep in mind that the end result consists of modifications in open holdings, so it differs from realised buying and selling revenue.

For a month-to-month assessment, subtract the opening internet account value as properly.

This provides a financial end result. A meaningful proportion return additionally needs to account for when deposits and withdrawals happened.

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

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