Calculating your profit is always satisfying because it is our pay in doing extensive transactions. Profit from trading cryptocurrency is a massive amount of money, depending on how you deal with it. Yet, it also requires a bountiful amount of capital. Hold up, do you know how to calculate cryptocurrency profit in the right way? If not, worry no more since this article is made to guide you. Also, be aware of unnecessary fees and hidden charges that other applications charge you because it decreases the profit you can receive.
Learn To Gain
Trading in cryptocurrencies requires awareness of the markets for cryptocurrencies. It is vital to know how to calculate cryptocurrency profit. You have to deal with traders worldwide while attempting to benefit from cryptocurrency trading. Before participating in extensive cryptocurrency investing, you should have sufficient knowledge and experience. Because of the occurring changes radical to technology, modifications made using its underlying technology, or changes resulting from an attack, any particular cryptocurrency can modify or otherwise cease functioning as anticipated.
The time horizon is the most significant distinction between selling and saving. While investment is a long-term effort, trading is intended to take advantage of short-term possibilities. Cryptocurrency trading involves particular abilities and expertise.
Determine the Break-even Point First Before the Profit
Let’s get started since there are several ways on how to calculate cryptocurrency profit. For example, to get into a trade, you could use the moving average cross overs or the RSI indicators, or you could use the signals from a signal provider like the crypto base cannon. Still, whatever your preference is, it’s an identified one. Know when you start selling so, we all know to buy low and sell high, but how high are high enough. The common mistake among beginning traders is that they wait too long to start selling or don’t sell enough, and this usually means that before the price reached a specific point, it rapidly goes back down.
So in this example, you have to determine if you are in profit, but you have to calculate your break-even point before that. But what is your break-even point, and how do you calculate it. For that, you have to calculate the amount you’ve invested and divide the amounts by their quantity. Then the amount you get is your break-even point.
| $8000 |
| + $9000 |
| $17000 |
| $17000 |
| ÷ 2 |
| $8500 |
Illustration:
Bitcoin 1 = $8000
Text BoxBitcoin 2= $9000
Profit Calculations
Generally, it would be best if you did a few necessary calculations manually to measure your trading benefit. To some, this is basic math, so it is self-explanatory. How to calculate cryptocurrency profit is as merely as the situation to be shown next. For instance, if you purchase Two Bitcoins (BTC) at $9,200 and sell them at $10,800, the transaction size is 3 Bitcoins (BTC). To determine the revenue, take the sale price of $10,800, deduct the sales price of $9,200, and multiply the difference by the amount of the deal. That’s a profit of $4,800.
How to Liquidate On-hand Stocks
This current year, you can never profit if you don’t market your product well.
Cryptocurrency is one of the fastest rising crypto commodities. Supported by the blockchain and allowed for trading, it essentially provides numerous ways for someone seeking to make a decent online income. Advertising and other means also help you gain extra profit as long as you can liquidate your stocks in a fast phase. Here are some ideas to consider;
- Staking- this refers to the method of saving or locking your assets in a crypto-coin and receiving new cryptocurrencies in the form of profit. You also benefit from price inflation should you choose to keep the coins for a fixed amount of time.
- HODLing and Purchasing stocks- HODLing is a mechanism where you purchase specific strong cryptocurrencies with great ideas and successful usage cases and then keep them up for quite some time with the expectation that their values would increase dramatically. If the currency’s price is excellent enough for you to make adequate money, you will sell it on the market. HODLing, however, does not earn you any interest in your income.
- Trading- Crypto trading is the same as stock trading, where you trade coins for profit margins. There are selections of platforms where you can purchase cryptocurrencies of your choice. Then you can keep them for a while or sell them quickly as soon as the price increases.
- Capital investments- Investing has been, in reality, the fastest way to raise money from cryptocurrencies. You can gain cryptocurrencies in several forms, via trading, ICO (initial coin offering), or private investment. Crypto investing will make your return through the price appreciation of the coin/token you buy and your share of the project. It depends on the kind of cryptocurrency you participate in too. You can reach the design or use the coin for transactions.
- Bonus Coins-Taking part inside benefit deals is another fun way to make money with cryptocurrency and doesn’t even need you to invest in something. It would be best to receive any coins enter the cryptocurrency airdrop or bounty program, and perform some simple tasks.
- Referral from others- A crypto recommendation service is a widespread and successful way to render cryptocurrencies. Much of the time, you don’t even need to spend something to refer to and receive a project. You will register on the website, get a specific referral link, and direct and gaining.
- Selling your currency- Since you’re a distributor of cryptocurrencies, such as Bitcoin and Ripple, are permitted in your country, you may accept the same in return for your products and services. Cryptocurrencies are digital currency that can be freely bought and sold, and used globally without any need to translate to other currencies. You can acknowledge any one of the top coins for simple, global transactions.
- Dividends-Cryptocurrency dividends are more or less like equity dividends. You contribute in a cryptocurrency dividend and gain guaranteed interest on your savings. You’ll need to purchase and keep cryptocurrencies for the time you want to gain profit.
- Increase your capital- With the growing prevalence and scope of cryptocurrency, more and more corporations are now using these digital tokens, among other items, to fund the wages of their workers. Payments from Crypto are secured, close to zero, and transparent. In comparison, paying the remote/freelance staff in bitcoin is cheap and straightforward instead of sending cash by other methods.
Conclusion
The best decision for 2020 and beyond is to invest in crypto-currencies. At first, it can seem dangerous, but in the long-term, it’s far more lucrative. It is easy to minimize the danger of cryptocurrencies by analysis and by diversifying your portfolio. Learn how to calculate cryptocurrency profit efficiently and effectively so that you won’t miss anything out in accounting for your data. Get to know more tips on how to calculate crypto profit here!