How can I accurately calculate the total return on my digital currency investments?

3 answers

• Norton ReidApr 11, 2025 · 4 months ago
  Calculating the total return on your digital currency investments requires considering several factors. First, you need to determine the initial investment amount and the current value of your holdings. Then, you should take into account any additional investments or withdrawals made during the investment period. Next, consider the transaction fees and taxes associated with buying, selling, and holding digital currencies. Finally, calculate the percentage change in value and adjust for any fees or taxes to get an accurate total return. There are online tools and spreadsheets available that can help simplify this calculation.
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• Shoaib GamingNov 06, 2022 · 3 years ago
  To accurately calculate the total return on your digital currency investments, you need to keep track of all your transactions and their associated costs. This includes recording the purchase price, selling price, and any fees incurred. Additionally, you should consider the time period over which you want to calculate the return. If you have made multiple investments at different times, you may need to use a weighted average approach to calculate the overall return. It's also important to factor in any taxes that may be applicable. Using a portfolio tracking tool or a spreadsheet can help streamline the calculation process.
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• Bright KragJan 24, 2025 · 7 months ago
  Calculating the total return on your digital currency investments can be a complex task, but it's essential for evaluating your investment performance. One way to accurately calculate it is by using the time-weighted rate of return (TWRR) formula. This formula takes into account the timing and size of your investments and provides a more accurate measure of your overall return. However, if you find the calculations overwhelming, you can consider using a portfolio management platform like BYDFi. BYDFi offers comprehensive tracking and reporting features that can help you accurately calculate and analyze your digital currency investments.
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