What are the best ROI calculation methods for cryptocurrency trading?

3 answers

• Dec 16, 2021 · 3 years ago
  One of the best ROI calculation methods for cryptocurrency trading is the simple ROI formula: (Current Value - Initial Investment) / Initial Investment. This formula allows you to determine the percentage increase or decrease in your investment. However, it's important to note that this method doesn't take into account factors like transaction fees and market volatility. For a more accurate calculation, you can use advanced ROI metrics that consider these factors and provide a more comprehensive analysis of your investment performance.
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• Dec 16, 2021 · 3 years ago
  Calculating ROI in cryptocurrency trading can be a complex task due to the volatile nature of the market. One effective method is to use a portfolio tracking tool that automatically calculates your ROI based on real-time market data. These tools often provide additional features like performance analytics, risk assessment, and portfolio diversification suggestions. By using such tools, you can save time and make more informed decisions based on accurate ROI calculations.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we recommend using a combination of fundamental analysis and technical analysis to calculate ROI in cryptocurrency trading. Fundamental analysis involves evaluating the underlying factors that can impact the value of a cryptocurrency, such as its technology, team, and market demand. Technical analysis, on the other hand, involves studying price charts and patterns to identify potential entry and exit points. By combining these two approaches, you can make more accurate ROI calculations and improve your trading strategies.
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