Are you struggling to track crypto profits and losses across different wallets?
Nansen's PnL feature can make that significantly easier.
We allow you to track every wallet’s PnL— from the most recent trade back to the very first, providing an unmatched view into the profitability of wallets across the crypto ecosystem on our supported chains.
Why Nansen's PnL Tracking Matters
So then, what makes it special?
It doesn't just track DEX trades – it considers all onchain transfers, giving you the complete picture.
Not only that, but we intelligently pool PnL by ecosystem: all EVM-compatible chain wallets (like Ethereum, Polygon, Arbitrum) are grouped together for a unified PnL view, while Solana wallets get their own separate tracking – giving you clear insights into your performance across multiple ecosystems.
Nansen PnL is not only for tracking your own wallet, but every wallet's PnL.
Key PnL Metrics Explained
1. Cost Basis: The Foundation of PnL Tracking
Think of cost basis as the "average purchase price" for each token. It updates automatically after every transaction to give the most accurate view of wallets.
Example:
- You buy 2 tokens for $10 each (Cost basis = $10)
- Later, you sell 1 token and buy another for $100
- Your new cost basis = $55 (weighted average of the remaining tokens)
2. Realized PnL: Actual Profits and Losses
This is the money actually made or lost from completed sales. It's the difference between selling price and cost basis.
Example:
- You buy a token for $15
- Sell it for $25
- Your realized PnL = $10 profit
3. Unrealized PnL: Paper Gains or Losses
This shows how much profit or loss sits in a wallet's unsold tokens, based on current market prices. Remember: you can track these potential gains or losses for any wallet on the blockchain – not just your own.
Example:
- You have a cost basis of $100 for a token
- Current token price is $80
- Your unrealized PnL = -$20 (a potential loss if you were to sell)
4. Total PnL: The Complete Picture
This combines both realized and unrealized PnL, showing overall wallet performance.
Example:
- You have -$100 in realized losses
- But $300 in unrealized gains
- Your total PnL = $200
5. ROI Metrics: Measuring Your Success
Total ROI
Shows overall return percentage, including both realized and unrealized gains.
Example:
- You invested $100 in a token
- Current value is $150
- Total ROI = 50%
Average ROI
The average return on investment for sold tokens, adjusted by the size of the trade (weighted average) to reflect accurate overall returns.
Example:
- You buy 20 tokens for $200 ($10 per token)
- First sale: 5 tokens for $100 at $20 each (ROI = 100%)
- Second sale: 15 tokens for $105 at $7 each (ROI = -30%)
- Weighted average ROI = (100%×5 + -30%×15) / (5+15) = 25%
Win Rate
This represents how often a wallet sells tokens at a profit, indicating the consistency of successful trades.
Example:
- You've made 10 token sales
- 7 were profitable
- Win rate = 70%
How Nansen Determines Token Trade Values
When calculating the value of a crypto trade, Nansen uses two methods:
- Counterparty Token Price (Primary Method)
- Based on actual trade execution
- Accounts for slippage and liquidity pool conditions
- Provides the most accurate trade value
- Market Price (Fallback Method)
- Used only when counterparty price isn't available
- Used mainly for simple transfers
- Based on current market rates
Let's look at an example
Imagine this trade on a DEX:
- A trader swaps 5 ETH for 1,000 AAVE
- ETH price at time of trade: $3,000
Step 1: Calculate Total ETH Value
5 ETH × $3,000 = $15,000 total value
Step 2: Calculate AAVE Counterparty Price
Counterparty Price of AAVE = $15,000 ÷ 1,000 AAVE = $15 per AAVE
Step 3: Calculate Total Trade Value
Trade Value = 1,000 AAVE × $15 = $15,000
Why This Matters
This method captures the true trade value by including slippage and actual execution conditions. For example, if the market price of AAVE was $14.50, using that price wouldn't reflect what actually happened in this specific trade.
Understanding Nansen's Transfer Tracking
The Challenge with Traditional PnL Tracking
Most platforms only track DEX trades, which creates two big problems:
- They miss tokens acquired through transfers
- They can't track profits when tokens are transferred instead of sold
How Nansen Solves This
Nansen treats transfers as meaningful transactions, helping track profits across multiple wallets. While there's some debate about whether transfers should count as buys/sells, this method gives us the most accurate picture of profit movement.
Let's look at an example
Following 500 AAVE tokens through three different wallets:
Initial Purchase
- Wallet X buys 500 AAVE
- Purchase price: $100 per token
Transfer Timeline
- First Transfer:
- Wallet X sends 250 AAVE to Wallet Y
- AAVE price at transfer: $150
- Second Transfer:
- Wallet X sends remaining 250 AAVE to Wallet Z
- AAVE price at transfer: $200
Scenario 1: Without Transfer Tracking
- Wallet Y and Z: Show $0 cost basis (system doesn't know their entry price)
- Wallet X: Shows no realized profit (system only sees transfers, not sales)
- Result: Lost tracking of all trading activity
Scenario 2: With Nansen's Transfer Tracking
- Wallet Y: Records 250 AAVE at $150 cost basis
- Wallet Z: Records 250 AAVE at $200 cost basis
- Wallet X: Shows realized profit from both transfers
- Result: Accurate PnL tracking across all three wallets
Key Takeaways
- Nansen tracks both DEX trades and transfers for complete PnL analysis
- Cost basis updates automatically with every transaction
- Transfer tracking ensures accurate multi-wallet portfolio analysis
- All wallets on EVM-compatible chains (Ethereum, Polygon, Arbitrum, etc.) are automatically pooled together, giving you a comprehensive view of performance across the entire EVM ecosystem.
- Solana wallet activities are tracked separately, allowing you to clearly understand performance on this unique ecosystem.
Ready to start tracking wallets like a pro?
Try Nansen's PnL tracking features, surfacing the signals and creating winners.
