The crypto profit calculator is a tool designed for users who trade or invest in cryptocurrency.
What is Crypto Profit Calculator? How to Use It?
As the trading volume of cryptocurrencies increases day by day, the number of users who want to trade in this field is also increasing. Since each cryptocurrency has its unique dynamics and price movements, one of the most challenging issues for newcomers to this universe to understand is the potential profit/loss calculation. This is exactly where the crypto profit calculator is designed to help users.
Users can do the following with the crypto profit calculator:
- Crypto profits and losses from investments
- Return on equity (ROE)
- Profit/loss calculation in futures transactions
- Estimated unrealized profit and loss (P&L) on transactions
In short, users can easily perform the above operations through the tool.
How to Use Crypto Profit Calculator?
With the crypto profit calculator, users can calculate their profit or loss with two different methods: unit calculation and amount calculation.
1. Unit Calculation
The unit calculation method is essentially an easier method than the amount calculation. In this method, users who want to calculate profit/loss can calculate it by subtracting the selling price from the cost price of the cryptocurrency.
For example, let’s say a user buys 1 BTC for $25000 and sells it for $50000. The user’s profit is calculated as $50000 – $25000 = $25000. The unit calculation formula is as follows:
- Profit = (Sell Price – Buy Price) * Investment units.
2. Amount Calculation
The second method by which users can calculate profit/loss with the crypto profit calculator is the amount calculation. In this method, the amount invested is expressed as a value in a specific currency (e.g., dollar, euro). The profit or loss is then calculated according to the exchange rate change between the selected currency and the cryptocurrency.
For example, a user invests $1,000 in Coin X. The exchange rate between USD and Coin X is 1:10. In this way, the user would own 10,000 Coins X. If the exchange rate changes to 1:15, then the user’s investment value becomes 15,000 X Coins. This is equal to $1500. This means that the user makes a profit of $1500 – $1000 = $500. The amount calculation formula is as follows:
- Profit = (Sell price – Buy price) * Investment amount / Buy price.
How to Use Crypto Profit Calculation?
Users who want to calculate crypto profit/loss should follow the steps below:
- Choose the fiat currency that you used to trade, exchange, or buy cryptocurrency. Click or tap the currency drop-down button to search for the currency that you want. Just type the currency name in the search field. Then click the currency to select it. For example, USD (United States Dollar).
- Choose the cryptocurrency that you bought. Click or tap the cryptocurrency drop-down button to search for the currency that you want. Just type the name of the crypto in the search field.
- In the ‘Investment’ field enter the amount (fiat) that you invested. For example, $1000. (Alternatively, you can click the ‘By Unit’ toggle switch to enter the Unit of cryptocurrency instead of the fiat amount. For example, 1.06 BTC)
- In the ‘Initial Crypto Price’ field, enter the price of the cryptocurrency when you purchased the crypto.
- In the Selling Crypto Price’ field, enter the price of the cryptocurrency when you sold the crypto.
- In the ‘Investment Fee’ field, enter the fee (in percentage) that your exchange changes for buying/trading the crypto.
- In the ‘Exit Fee’ field, enter the fee (in percentage) that your exchange changes for selling/trading the crypto.
- Finally, your profit or loss for your investment will be displayed on the screen
Ease of Crypto Profit Calculation
Of course, it can be quite challenging for users interested in cryptocurrencies to make and follow this calculation in every transaction. With Crypto Profit Calculation, users can effortlessly learn the potential profit/loss ratio without making these calculations simply by entering the bid and ask price data.
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