Beginner question about how PL is calculated (crypto to crypto)

[brilliantcrypto]

Koinly gave me reports for my trading, but I’m confused and trying to understand the general logic of PL calculation in the first place.

Suppose my home currency is Yen.
If I buy 100 USDT @ rate 80 (1 USDT = 80 Yen). Total cost = 8000 Yen.
Sell for rate 81 a few days later (total sale proceeds 8100 Yen).
Profit is 100 Yen, this is simple as each transaction is in the home currency.

My doubt is in case of crypto to crypto transactions.
Suppose I start with the same buy 100 USDT @ 80 Yen (total cost 8000 Yen).
Now I use the 100 USDT to purchase say 200 XRP.
Later I sell this 200 XRP for 8300 Yen.

How is PL calculated in this case? That is, what is the profit in sale of USDT for XRP and profit in the case of selling XRP for Yen. (Does it involve USDT/Yen and XRP/Yen rates on that day?)

Thanks!

[Ali_Koinly]

@brilliantcrypto

It would be the same,

Your cost for 100 USDT - 8000 YEN

When you buy XRP for 100 USDT, the XRP now has a cost basis of 8000 YEN,

When you sell 200 XRP for 8300 YEN - your gain is recoreded as 300 YEN.

I would highly recommend that you experiment with the platform and add manual transactions/trades to understand how profit/loss is calculated.

Please note - calculations depend largely on the cost-basis method - this can be selected in the Settings menu, and should be the method that is accepted by your local tax office.