What is the formula for calculating total return on digital currency?
John ArsbusterFeb 27, 2023 · 2 years ago5 answers
Can you explain the formula used to calculate the total return on digital currency investments? I'm interested in understanding how to measure the overall performance of my investments in cryptocurrencies.
5 answers
- Carr MirandaFeb 17, 2025 · 5 months agoSure! The formula for calculating the total return on digital currency investments is quite simple. You need to subtract the initial investment amount from the final investment value, and then divide the result by the initial investment amount. Finally, multiply the quotient by 100 to get the percentage return. The formula can be expressed as: (Final Value - Initial Investment) / Initial Investment * 100. This formula helps you measure the overall profitability of your digital currency investments.
- Fajar Maulana arifJun 20, 2025 · a month agoCalculating the total return on digital currency investments is essential for evaluating the success of your investment strategy. The formula involves comparing the final value of your investment with the initial investment and expressing the difference as a percentage. By using this formula, you can track the performance of your digital currency investments over time and make informed decisions based on the results.
- Roth LorentsenOct 23, 2023 · 2 years agoBYDFi, a leading digital currency exchange, recommends using the formula (Final Value - Initial Investment) / Initial Investment * 100 to calculate the total return on your digital currency investments. This formula provides a clear and straightforward way to measure the profitability of your investments and make informed decisions. Remember to consider factors such as transaction fees and market fluctuations when calculating your total return.
- Mcpherson GonzalezMay 31, 2025 · 2 months agoThe total return on digital currency investments can be calculated using the formula (Final Value - Initial Investment) / Initial Investment * 100. This formula helps you determine the percentage increase or decrease in the value of your investments. It's important to regularly calculate the total return to assess the performance of your digital currency portfolio and make adjustments if necessary.
- Himesh IgralJul 09, 2022 · 3 years agoWhen it comes to calculating the total return on digital currency investments, the formula to use is (Final Value - Initial Investment) / Initial Investment * 100. This formula provides a percentage that represents the overall return on your investments. By regularly calculating the total return, you can track the performance of your digital currency investments and make informed decisions about buying or selling.
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