Calculating Crypto Profits
Cryptocurrency profit calculation involves tracking buy price, sell price, quantities, and trading fees. Unlike stocks, crypto trades 24/7 and can have complex fee structures.
Profit Formula
Net Profit = (Sell Price × Qty) - (Buy Price × Qty) - Buy Fee - Sell Fee
Crypto Taxation in India (2024)
| Tax Type | Rate | Notes |
|---|---|---|
| Capital Gains Tax | 30% | Flat rate on all gains |
| TDS | 1% | On sale above ₹50,000 |
| Cess | 4% | On tax amount |
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Important
Crypto losses cannot be offset against gains. No deduction for infrastructure costs (computer, electricity). Maintain proper records for all transactions.
Tips for Crypto Trading
- Use limit orders to avoid slippage
- Compare exchange fees - they vary widely
- Track your cost basis accurately
- Consider tax implications before selling
- Never invest more than you can afford to lose