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Author: Admin | 2025-04-28
The math is more complex.How do I calculate crypto ROI?ROI in crypto is calculated much like any other investment. The ROI equation itself remains exactly the same. Crypto just adds new variables when figuring out Initial Value, Final Value, and Cost.Here’s a quick refresher on the ROI equation:\text{ROI} = {\text{Final Value} - \text{Initial Value} \above{1pt} \text{Cost}} \times 100Initial Value is still an easy calculation for crypto investments:\text{Initial Value} = \text{Initial Price} \times \text{Initial Quantity}Keep in mind that commissions and fees could be deducted at the time of the purchase: lowering the Initial Value of an asset.Final Value is straightforward as well – at least, when you’re looking in the rearview mirror:\text{Final Value} = \text{Final Price} \times \text{Final Quantity}Projecting the future value of a crypto investment is more challenging, of course, with no guarantees. Certain financial products may cause quantities to grow and compound, for example. The calculator above is great at hypotheticals.Cost calculations for a crypto investment can be challenging. Almost every cryptocurrency takes some sort of transaction fee to support the maintenance of the network. This is called “gas”. If you’re trading with a traditional (centralized) broker, that firm is certain to deduct their own transaction fees in some form. You may also pay a fee to initially deposit U.S. dollars or other non-digital currency on the platform. Crypto enthusiasts call this a “fiat onramp”. Meanwhile, “fiat offramps”, or fees incurred at the time of reclaiming your funds, also exist on some platforms.You may instead “swap” to buy a
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