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The ROI in the crypto industry is calculated in the same way as in the traditional financial world. To calculate the percentage return on a cryptocurrency investment, an investor first needs to determine the purchase price of an asset.
The next step is to subtract the purchase price of the digital asset from its sale price, resulting in either a return or a loss on the investment. The investor then takes that figure and divides it by the original purchase price, after which the result is multiplied by 100 to give the percentage change in investment.
Let’s say a person bought Bitcoin for $30,000 and sold it for $25,000. This means a loss of $5,000 or 16.67%. To get this number, subtract 25,000 (sale price) from $30,000 (purchase price), divide that number ($5,000) by $30,000 (purchase price), and we get 0.167. This figure, multiplied by 100, will be 16.7%, or a loss of -16.7%.
Let’s consider the opposite scenario. An investor buys bitcoin for $30,000 and sells it for $45,000. In this situation, he will make a profit of $15,000 or 50%. This figure is the result of determining the difference between the buy and sell price – in this case, subtracting $30,000 from $45,000 and dividing that figure by $30,000. The resulting number (0.5) times 100 represents 50% or +50% gain. .
If an investor is dealing with much larger and more complex numbers and/or wants to save time and effort, the Finbold Percentage Calculator may come in handy. This calculator only requires the user to enter values (bid and ask prices) and the result (loss or gain) of their bitcoin investment will be displayed instantly.
Calculation of profit in bitcoins using a percentage calculator. Source: Finbold
For example, investors who bought bitcoin a month ago and sold it today will record a profit of 32%. So far, the price of the main cryptocurrency, despite regular pullbacks, does not stop trying to break above $ 23,000.
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