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.

Right here’s a hypothetical example, using 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 worth is $3,000.
• You haven’t withdrawn something.

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

For an account measured from its empty start line:

Present internet account value + exterior withdrawals - exterior deposits = lifetime account end result.

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

A number of different checks help:

• Embrace all wallets inside the account boundary you selected.
• Use a constant reporting foreign money.
• Account for relevant liabilities when calculating internet value.
• Don’t subtract fees once more if they are already mirrored in ending equity.
• Keep in mind that the outcome consists of modifications in open holdings, so it differs from realised trading profit.

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

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

When reconciling your Binance history, which causes probably the most confusion: inner transfers, fees, 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.