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

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

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

• You begin with an empty account and deposit $2,000.
• Later, you deposit another $1,500.
• Your current internet account value is $3,000.
• You haven’t withdrawn something.

Your stability rose from $2,000 to $three,000. However your complete contribution was $three,500, so your account result's 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 transfer from Spot to Futures strikes cash inside your Binance account. Counting it as another deposit when reviewing the entire account would double-count the same funds.

A couple of different checks assist:

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

For a monthly evaluation, subtract the opening internet account value as nicely.

This provides a financial outcome. A significant proportion return additionally 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: That is Robod’s official account, an unbiased crypto research and account analytics platform. We aren't affiliated with Binance.