This time, bitcoin trading tips are about how to manage your return on investment or ROI. Want to know the tricks that can be done? Check out the explanation below.
Why is ROI Important in Bitcoin Trading?
In simple terms, Return of Investment or ROI is the return on investment that is calculated based on the result of dividing the income generated by the amount of capital invested. This means that ROI plays an important role in providing information about the measure of business profitability clearly so that all operational activities can be evaluated on the rate of return on investment.
That is why it is important for you to know how to calculate ROI correctly. Measuring ROI is the first thing an investor or trader does before he makes a trade or investment. This is an important part of the bitcoin trading tips that you should do.
Why, should we use ROI in bitcoin trading? ROI calculation also aims to measure efficiency in an investment. You do this by comparing net income with invested capital.
If the ROI is positive, then the results are profitable, and vice versa. Investors or traders often use ROI as a medium to compare return on investment.
In addition, if you are a new investor or trader, using ROI makes you train to become a reliable professional trader. So, later if you have prepared a bigger capital, you can be more efficient in trading and get more money.
Now do you understand ROI? Are you going to use it as a bitcoin trading tips?
How to Calculate the Return of Investment in Bitcoin Trading
After you understand what ROI is, this time we will understand how to calculate ROI. There is a formula that can be used to calculate the Return of Investment (ROI). You can try this as your bitcoin trading tips.
ROI = (Total Sales – Investment) / Investment x 100%
If you start trading bitcoin for Rp. 10 million and make a profit of Rp. 15 million, it means a profit of Rp. 5 million. So, the ROI calculation as a percentage is as follows.
ROI = (IDR 15 million – IDR 10 million) / IDR 10 million x 100% = 50%
So, in conclusion, the ROI is 50%.
So, that was an explanation of the Return of Investment and how to calculate it. Hopefully this can be your bitcoin trading tips and add insight and profit in bitcoin trading. To keep you profitable, don’t miss other interesting information on Indodax.academy and Indodax’s official social media which you can get for free.