How can I calculate the realized rate of return for cryptocurrencies?

1 answers

• Munish KumarMar 19, 2024 · a year ago
  Calculating the realized rate of return for cryptocurrencies is essential for evaluating your investment performance. Here's a step-by-step guide: 1. Determine the initial investment amount. This is the total amount of money you initially invested in cryptocurrencies. 2. Calculate the final value of your investment. This is the current value of your cryptocurrency holdings. 3. Subtract the initial investment amount from the final value to get the total profit or loss. 4. Divide the total profit or loss by the initial investment amount. 5. Multiply the result by 100 to get the realized rate of return as a percentage. For example, if you invested $1,000 in cryptocurrencies and the current value of your holdings is $1,500, your total profit would be $500. Dividing $500 by $1,000 gives you a return of 0.5, or 50% when multiplied by 100. Remember to regularly track your investment performance and adjust your strategy accordingly. Good luck with your cryptocurrency investments!
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