How to calculate unrealized gain/loss on your entire crypto portfolio

Question

I read a lot of places where it takes the following steps to calculate unrealized gain/losses:

step1: Multiply the price you paid per share by the number of shares purchased to calculate your cost for the stock.

step2: Multiply the current price by the number of shares you own to figure the current value of the stock.

step3: Subtract your cost from the current value to figure your unrealized gain.

However, what if you sold some crypto, then how would you deduct that sold amount into the unrealized gain/loss equation? Below is my example, for simplicity, not going to include fees:

date	trade	amount	settled_price	balance
1/1	buy	1	40k	1
1/2	buy	1	41k	2
1/3	sell	0.5	42k	1.5
1/4	buy	1	43k	2.5

so, what is the unrealized gain/loss of this example on 1/4?

Answer 1

That depends on how you determine the Cost Basis of the investment (which shouldn't be all that different from how you calculate the cost basis of stock market portfolios).

https://novelinvestor.com/calculating-cost-basis/#method

The common methods are:

• FIFO (first in, first out) and
• by Lot ID (the "serial number" of the purchase; brokerages supply this for you when purchasing stocks; the place where you buy your coin might supply one for you, or you might have to make one yourself).