The term gain is often associated with appreciating value. Oftentimes, gains are also known as profits that incurs while selling an asset higher than its initial buying price. Real gains are calculated while considering the maintenance cost of any given asset.
Alongside realized profits, gains can also incur unrealized profits. Unrealized gains occur for assets with appreciating values, but the investor doesn’t sell them. It can be predominantly experienced in the crypto market.
With cryptocurrencies subjected to volatility, they can oscillate in extreme spectrums in a very short period of time. Gains can be further divided into gross and net profits. Gross profits don’t take account of the overhead expenses that come with managing the asset. While net profit is the final amount an investor ends up having after a sale.