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Can you explain the concept of percentage total return in the context of cryptocurrency investing?

avatarPhan Huỳnh Châu ThịnhDec 27, 2021 · 3 years ago3 answers

In the world of cryptocurrency investing, what does the concept of percentage total return mean? How is it calculated and why is it important for investors?

Can you explain the concept of percentage total return in the context of cryptocurrency investing?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    Percentage total return in cryptocurrency investing refers to the overall profit or loss generated from an investment, expressed as a percentage of the initial investment amount. It takes into account both the capital gains or losses and any additional income, such as dividends or interest, received from the investment. To calculate the percentage total return, you subtract the initial investment amount from the final value of the investment, divide it by the initial investment amount, and multiply by 100. This metric is important for investors as it provides a clear measure of the performance of their investment, allowing them to compare different investments and assess their overall profitability.
  • avatarDec 27, 2021 · 3 years ago
    Alright, so here's the deal with percentage total return in cryptocurrency investing. It's basically a fancy way of saying how much money you made (or lost) on your investment, expressed as a percentage. To calculate it, you take the final value of your investment, subtract the initial amount you put in, divide it by the initial amount, and multiply by 100. Boom! That's your percentage total return. It's important because it gives you a quick snapshot of how well your investment is doing. You can compare it to other investments and see which ones are making you the most money. So, keep an eye on that percentage total return, my friend!
  • avatarDec 27, 2021 · 3 years ago
    Percentage total return is a key concept in cryptocurrency investing. It measures the overall return on an investment, taking into account both capital gains and any additional income generated. Let's say you invested $1,000 in a cryptocurrency and after a certain period of time, your investment is now worth $1,500. To calculate the percentage total return, you subtract the initial investment amount ($1,000) from the final value ($1,500), which gives you a profit of $500. Then, you divide this profit by the initial investment amount ($1,000) and multiply by 100 to get the percentage total return of 50%. This metric is important for investors as it helps them evaluate the performance of their investments and make informed decisions.