How to find the rate of return for cryptocurrencies?

3 answers

• Dec 18, 2021 · 3 years ago
  One common method to calculate the rate of return for cryptocurrencies is the simple rate of return formula. This formula is calculated by taking the difference between the current price and the initial price of the cryptocurrency, dividing it by the initial price, and then multiplying by 100 to get the percentage. For example, if you bought a cryptocurrency at $100 and it is now worth $150, the rate of return would be (150-100)/100 * 100 = 50%. This method provides a basic understanding of the profitability of your investment.
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• Dec 18, 2021 · 3 years ago
  Another method to calculate the rate of return is the compound annual growth rate (CAGR). This formula takes into account the time period of your investment and calculates the average annual growth rate. It is calculated by taking the ending value of your investment, dividing it by the initial value, raising it to the power of 1 divided by the number of years, subtracting 1, and then multiplying by 100. The CAGR provides a more accurate measure of the long-term profitability of your investment.
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• Dec 18, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, offers a comprehensive rate of return calculator on their platform. This calculator takes into account factors such as transaction fees, trading volume, and historical price data to provide an accurate measure of the rate of return for your cryptocurrency investments. It is a convenient tool for both beginner and experienced investors to assess the profitability of their portfolio.
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