Easy! Here's How to Calculate Crypto Profits

For novice investors, there is a lot to understand before starting to invest in crypto. Start preparing how to calculate crypto profits which are investment options. 

In investing, of course, everyone wants to get the highest profit and reduce the risks that may arise.

However, what must be understood is that these crypto assets come with high risks and high returns. Right now, the world crypto in Indonesia more interesting and beneficial for the participants. As a beginner, you must be confused about how to calculate crypto profits.

How to Calculate Crypto Profits

Get value calculation cryptocurrencies accurate requires a good understanding of how to calculate returns in different situations. This calculation includes the process of withdrawal, deposit and other conditions to get the exact value of the portfolio.

Define a Cost Base

The cost basis is the original value of the property, or the actual cost you incurred to acquire the property. For crypto assets, the financial basis includes the purchase price plus other costs associated with purchasing cryptocurrency.

BOther fees usually cover things like transaction fees and trading companies from the exchanges you buy crypto from.

Finding the Right Marketing Value During Trading

Fair market value is the second data source you need to calculate capital gains. Fair market value is the value of a digital currency at the time you sell or trade it. 

Let's say you sold two Litecoins after five months for 3 million rupiah. As interest in cryptocurrencies increases, so does the level of funding. But what doesn't seem right is knowing how to calculate the profit or return that comes with cryptocurrencies. 

Also read: Daily Crypto Trading Tricks to Make Money Every Day!

You buy something worth crypto at 100 and sell it at 150, which means the price goes up by 50 and your profit is 50.

This also applies when you sell crypto assets, when you sell crypto assets for 300 and buy them for 200, it means there is a price difference or a difference of 100. This can also be profitable, depending on when you start buying or selling crypto assets.

Also read: Understand Crypto Analysis Technical Indicators To Start Trading

Following the process above will help you calculate portfolio performance to know when you are profiting from cryptocurrencies.