Is there a specific formula to determine the total return of my cryptocurrency portfolio?

5 answers

• D. RicoNov 20, 2022 · 3 years ago
  Calculating the total return of a cryptocurrency portfolio involves considering the initial investment, the current value of the portfolio, and any additional deposits or withdrawals. One common formula is to subtract the initial investment from the current value of the portfolio and divide the result by the initial investment. This will give you the percentage return on your investment. However, it's important to note that this formula doesn't take into account any fees or transaction costs. It's always a good idea to consult with a financial advisor or use a portfolio tracking tool that can provide more accurate calculations.
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• martonziJul 29, 2021 · 4 years ago
  There isn't a specific formula set in stone for calculating the total return of a cryptocurrency portfolio. The calculation can vary depending on factors such as the time period, the type of cryptocurrencies in the portfolio, and any additional investments or withdrawals. However, a common approach is to calculate the percentage return by dividing the current value of the portfolio by the initial investment and subtracting 1. This will give you the overall return as a decimal or percentage. Keep in mind that this calculation doesn't consider transaction fees or other costs associated with trading cryptocurrencies.
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• shareeq TpAug 08, 2020 · 5 years ago
  Determining the total return of your cryptocurrency portfolio can be done using various methods. One popular approach is to use a third-party portfolio tracking tool like BYDFi, which automatically calculates the total return based on your portfolio's performance. These tools take into account factors such as the initial investment, current value, and any deposits or withdrawals. They also consider transaction fees and other costs, providing a more accurate representation of your portfolio's return. It's worth exploring different tools and methods to find the one that best suits your needs.
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• Crosby BergOct 05, 2022 · 3 years ago
  Calculating the total return of a cryptocurrency portfolio can be a bit tricky, but it's definitely possible. One way to do it is by tracking the performance of each cryptocurrency in your portfolio individually and then combining the returns. You can calculate the return of each cryptocurrency by subtracting the initial investment from the current value and dividing it by the initial investment. Once you have the returns for each cryptocurrency, you can sum them up to get the total return of your portfolio. Keep in mind that this method doesn't consider transaction fees or other costs, so it's important to factor those in separately.
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• Esha RajpootAug 26, 2023 · 2 years ago
  To determine the total return of your cryptocurrency portfolio, you can use a simple formula. Subtract the initial investment from the current value of your portfolio and divide the result by the initial investment. This will give you the return on your investment as a decimal or percentage. However, it's important to note that this calculation doesn't take into account any fees or transaction costs. To get a more accurate picture of your total return, consider using a portfolio tracking tool that can factor in these costs and provide a more comprehensive analysis.
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