What is the best way to calculate the total return on a cryptocurrency investment?

3 answers

• Dec 28, 2021 · 3 years ago
  One of the best ways to calculate the total return on a cryptocurrency investment is to use the formula: (Ending Value - Beginning Value) / Beginning Value. This formula takes into account the price appreciation of the cryptocurrency over the investment period. However, it's important to note that this formula does not consider dividends or fees. If you want to include dividends, you can add the dividend payments to the ending value. To account for fees, subtract the fees from the ending value. This will give you a more accurate calculation of the total return on your cryptocurrency investment.
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• Dec 28, 2021 · 3 years ago
  Calculating the total return on a cryptocurrency investment can be a bit tricky, but it's definitely doable. One approach is to use a spreadsheet or a financial calculator to track your investment over time. You can input the initial investment amount, the price of the cryptocurrency at the time of purchase, any additional investments made, and the current price of the cryptocurrency. The spreadsheet or calculator will then automatically calculate the total return for you. This method allows you to easily track the performance of your investment and make informed decisions based on the data.
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• Dec 28, 2021 · 3 years ago
  At BYDFi, we recommend using a third-party portfolio tracking tool to calculate the total return on your cryptocurrency investment. These tools often provide more advanced features and can take into account factors such as dividends and fees. Some popular portfolio tracking tools include CoinStats, Blockfolio, and Delta. These tools allow you to input your cryptocurrency investments and track their performance over time. They also provide detailed analytics and insights to help you make informed investment decisions. Using a portfolio tracking tool can save you time and effort in calculating the total return on your cryptocurrency investment.
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