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How to Calculate ROI for Crypto
What is crypto ROI? Learn how to calculate ROI for your crypto assets and use it as a tool to evaluate the performance of your investments.
How to Calculate ROI for Crypto
What is crypto ROI? Learn how to calculate ROI for your crypto assets and use it as a tool to evaluate the performance of your investments.
FEB 26, 2024
Key Takeaways:
Return on Investment (ROI) compares the current value of an asset to its original value to determine its performance.
Calculating ROI for crypto assets involves subtracting the initial value from the current value, dividing it by the initial value, and multiplying by 100.
Positive ROI indicates a profit, while negative ROI suggests a loss.
ROI is a valuable metric for evaluating the performance of crypto assets, but it has limitations.
Alternative metrics to ROI like Internal Rate of Return (IRR) or Risk-Adjusted Return consider additional factors like time, cash flow, and risk, providing a more comprehensive assessment of investment performance.
What Is ROI in Crypto?
If you’re trading cryptocurrency, it’s crucial to regularly assess the performance of assets compared to the wider market. A basic…
