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What is the yield on cost of investing in cryptocurrencies?

avatarLechémia ThéoDec 27, 2021 · 3 years ago5 answers

Can you explain what the yield on cost of investing in cryptocurrencies means and how it is calculated?

What is the yield on cost of investing in cryptocurrencies?

5 answers

  • avatarDec 27, 2021 · 3 years ago
    The yield on cost of investing in cryptocurrencies refers to the return on investment (ROI) that an investor would have achieved if they had purchased a cryptocurrency at an earlier date and held onto it until the present. It is calculated by dividing the current value of the investment by the initial cost of the investment and then subtracting 1. For example, if you bought a cryptocurrency for $100 and its current value is $200, the yield on cost would be 1 (200/100 - 1 = 1), indicating a 100% return on your initial investment.
  • avatarDec 27, 2021 · 3 years ago
    Yield on cost is a metric that helps investors assess the profitability of their cryptocurrency investments over time. It takes into account the price at which the investment was made and compares it to the current value. By calculating the yield on cost, investors can determine the percentage return they have earned on their initial investment. It is important to note that yield on cost does not take into account any additional investments made after the initial purchase.
  • avatarDec 27, 2021 · 3 years ago
    The yield on cost of investing in cryptocurrencies is a useful metric for long-term investors. It allows them to track the performance of their investments over time and assess the profitability of their strategy. By calculating the yield on cost, investors can determine whether their investments have outperformed or underperformed the market. It is important to note that the yield on cost does not take into account any transaction fees or taxes that may be incurred during the investment period.
  • avatarDec 27, 2021 · 3 years ago
    The yield on cost of investing in cryptocurrencies is an important metric for evaluating the long-term profitability of an investment. It takes into account the initial cost of the investment and compares it to the current value, providing investors with a measure of the return they have earned over time. By calculating the yield on cost, investors can assess the performance of their investments and make informed decisions about whether to hold or sell their cryptocurrencies.
  • avatarDec 27, 2021 · 3 years ago
    The yield on cost of investing in cryptocurrencies is a valuable metric for assessing the performance of an investment over time. It allows investors to see how much their initial investment has grown and calculate the percentage return they have earned. By tracking the yield on cost, investors can make informed decisions about when to buy or sell their cryptocurrencies based on their desired level of profitability.