How to calculate crypto profit

Digital assets offer the widest range of income opportunities you won’t find in any other financial instrument. Knowing how to calculate crypto profit will allow you to trade more efficiently and reasonably manage your funds. There are several simple ways to calculate crypto profit if you are going to trade on the exchange or hold assets for the long term.

Today we will tell you how you can calculate your crypto profit and loss. This will allow you to trade with more confidence and apply your strategy effectively. We will discuss crypto profits and how to use the calculator in detail. To help newcomers get up to speed, let’s start with the basics.

How you can get a crypto profit?

Everyone already knows that crypto is the unit of account for transactions within a decentralized system. People have a great option for earning because crypto profits can be very large. Since its inception, this asset has displayed rapid growth and widespread market acceptance. The process of buying and selling digital money for crypto profit is known as trading. If you want to trade on an exchange and make money, you need to learn how to calculate profit.

Why is it important to calculate profit? The rate of this asset can change hundreds of times a day. Therefore, the first and most obvious way to make money with digital assets is to trade on an exchange. While trading is popular, it requires certain skills, including determining the potential profit.

How to calculate your crypto gains/profit?

Many beginners think that it is very difficult to determine the potential profit. Actually, it is much easier than it seems. So, how to calculate crypto gains, using a simple formula? It’s very easy:

  • To calculate your crypto gain in percentage, divide the current value of the asset by the cost you bought it for, and then multiply that value by 100.
  • For instance, if the cost at the time of purchase was $30 and the current cost is $50, your profit percentage will be 50/30 = 1,6*100 = 160%. So we get a 160% return.

You can calculate crypto profit in percentages really fast. Keep in mind that the cost can vary depending on the trend, so follow the dynamics of quotes.

Consider another way to calculate your crypto profit/loss if you are day trading:

  • You bought coins for $100 and want to sell them for $150. It’s not hard to assume that the gain will be $50.
  • Now subtract the cost of trading from this amount and you have a net crypto profit, that’s all.

Note, that the cost of buying/selling is not only the price of the asset itself but also any commissions for transactions.

Some enthusiasts resort to determining their unrealized crypto profit (gain that has not been fixed). How can you determine such a crypto profit? This is the difference between the cost you paid when you bought an asset and the current cost. This crypto profit should not be your only guide; it can be an estimate of how successful your activity is.

Another way to calculate crypto gain is to multiply your investment by the percentage of asset growth in decimal form. For instance, if you invested $3,000 and the currency quotes increased by 30%, then the crypto profit will be 3000*0.3 = $900.

So, why do you need to calculate crypto profit and loss? The only way to reliably determine your portfolio’s performance is to know your profit and loss on each asset.

Сrypto profit calculator tool

If you don’t want to do the math yourself, you can use a special crypto profit calculator. There are many services like CoinStats or options offered by exchanges. Such calculators take into account all components: the cost, the coin count, and transaction fees.

How does the calculator work? It’s very simple, just enter the necessary data and you’ll see the result. To speed up the calculation of potential crypto profits, you can create an account and see all the analytics at a glance. The calculator eliminates human error and helps you get an accurate result.