A guide on how to calculate crypto investment returns is important for those who are struggling with the world of cryptocurrencies, especially those who act as traders.
As is widely known, everyone who invests in cryptocurrency, of course, expects a return in the form of profit. However, most of them do not know how to calculate the profit from these digital assets.
In fact, how to calculate cash from crypto assets is a bit difficult, especially for novice traders. The reason is, when calculating crypto profits, traders not only involve reducing the difference between the buying and selling prices, but also considering other aspects, ranging from trading fees, commissions, spreads, and so on.
Sometimes traders also have to calculate trading profits quickly, change one cryptocurrency to another, and so on. On the other hand, considering the development of the Indonesian crypto world, which continues to develop recently, traders need guidance in calculating their funds.
Confused how? Check out the full explanation in the following review.
Is there a way to calculate the return on crypto investment?
Can we calculate the profit from crypto investments that we will get later? Of course, I can.
As a simple analogy, crypto profits can also be calculated like other business profits. It can be interpreted that when a trader buys a crypto asset at a certain price, he will definitely benefit from the price difference over the purchased crypto asset.
For example, when someone buys shoes to resell. In this case, there is a level difference that must be taken, namely by increasing the price. This is so that someone can make a profit when the shoes are later sold.
Take for example, as a seller, you have bought a pair of shoes at a price of 50 (fifty) and managed to sell the shoes at a price of 75. That is, you will make a profit of 50 (fifty). Your profit as a percentage is 50%.
It is also important to understand that the mechanism for selling crypto assets is the same as for stocks. In a sense, the profit applies to the purchase price or the selling price. Simply put, the trader will be able to earn his profits from selling or buying his crypto assets.
How to Calculate Crypto Profit
As an illustration of calculating your crypto investment profits, you can use an analogy like the one above and this time directly to crypto assets.
Suppose you buy a crypto asset at a price of 50, then resell it at a price of 75. That means, there is an increase in the price of 50 so that in this case you have made a profit of 50 worth of the crypto asset.
Does this also apply when selling crypto assets? Of course. Suppose you sell a crypto asset at 200 and buy it at 100, that means there is a difference in price of 100. That number can also be profit for you, depending on when you start buying or selling the crypto asset.
Thus, as a trader, you will also be able to get profits or cash from the crypto assets that you have, both when buying and selling.
For another method, you can also use the following crypto trading profit calculator.
1. Calculator to calculate crypto profit
Traders generally need to do some simple calculations manually to calculate their trading profits. Besides, an experienced trader will usually use a crypto profit trading calculator to save time.
Some recommended calculators are as follows.
a. Sabe calculator
On this platform, there is also a simple calculator that will help traders to understand the momentum of trading profits. Basically, this platform is an educational medium that offers programmer classes and tutorials.
If you want to calculate your earnings through Sabe, a trader must enter one of the purchased tokens into Tether (USDT), Ripple (XRP), Litecoin (LTC), and so on, with the number of coins purchased and the purchase price.
This method of calculating crypto trading profits is considered the easiest because the data will continue to be updated according to the price from CoinMarketCap.
b. Easy Bitcoin calculator
A quick way to calculate crypto profits can be done through this one calculator. In fact, it is a calculator for calculating specific Bitcoin profits, but it can also be used to accumulate profits for other crypto assets.
Like the Sabe platform earlier, in Easy Bitcoin, traders need to enter the number of Bitcoin (BTC) coins and buy and sell prices.
However, unlike Sabe, here traders can also enter the costs incurred. In fact, traders can determine long/short strategies or only calculate costs, including accumulating bitcoin profits.