How can I calculate the annual return on my cryptocurrency investments?

1 answers

• Dec 18, 2021 · 3 years ago
  Calculating the annual return on your cryptocurrency investments is crucial for evaluating the performance of your portfolio. Here's a simple step-by-step guide: 1. Start by determining the initial value of your investment. This can be the amount you initially invested or the current value of your portfolio at the beginning of the year. 2. Next, determine the final value of your investment. This can be the current value of your portfolio or the amount you expect to have at the end of the year. 3. Calculate the percentage change in value by subtracting the initial value from the final value, dividing the result by the initial value, and multiplying by 100. 4. To get the annual return, divide the percentage change by the number of years you're considering. For example, if your initial investment was $10,000 and your portfolio is now worth $15,000 after 2 years, the percentage change would be (15,000 - 10,000) / 10,000 * 100 = 50%. The annual return would be 50% / 2 = 25%. Remember that this calculation doesn't take into account any additional investments or withdrawals you may have made during the year. It's a basic method to estimate the annual return on your investments.
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