From the barter system used by our ancestors, we have come a long way to having non-existent currencies, and mankind has come a very long way. If you still don’t know what cryptocurrency is, please stop living under a rock. But if you already know what cryptocurrencies are, you might also know that they are online, digital currencies with their digital presence. And to convert to the profit gained by crypto, you need a crypto profit calculator.
Once you get a hold of what it is and you have started investing in cryptocurrencies, you need to make sure that you are gaining the right amount of profit and also that you can track everything related to your investment. For this, you need a crypto profit/loss calculator. And this is why you are reading this article. Read more to find out!
Where is all the cryptocurrency located?
Since they don’t have a physical presence, you can’t store it in your cupboard or the bank. Plus, it doesn’t come with a bank account because any government does not govern it in the world.
Thus a cryptocurrency wallet is, well, a wallet to hold your cryptocurrency just like that square leather piece in your pocket or your handbags. But here you do not have a choice as to where you can keep your money. You can shove your dollars in your bag or your socks (please don’t do this) anywhere you want to. But it would be best if you had a wallet for cryptocurrency.
Digital wallets can be available for either one cryptocurrency, or they can be available for many. A wallet that can hold any cryptocurrency is called a multi-cryptocurrency wallet.
Ways to calculate crypto profit?
With the help of a crypto profit calculator, you can know the profit that you would get after a certain amount of time concerning the rise and fall in the value of cryptocurrency. You can also calculate the value of a single transaction and how much profit you gained. If you have bought cryptos in bulk and now that its value has risen and you need to calculate the amount as to how much profit that you have earned, then a crypto profit calculator would be the right tool for you.
Also, there are several other ways that you can use basic math when it comes to calculation, and they are as follows:
1. Transaction to transaction:(same)
Let’s say if you bought around 10 Bitcoins for about 400 thousand dollars. The price of bitcoin rose from 40 thousand dollars to about 43 thousand dollars. Now, as you sell your Bitcoin, it would fetch you 430 thousand dollars. Thus the profit would be the selling price minus the cost price, which would come to 30 thousand dollars. Therefore you earned about 30 thousand dollars as profit.
2. Transaction to transaction:(other)
Now consider you bought the same number of Bitcoins which is 10 for the same amount. But with that, you purchased about 300 ethereum coins. Now, ethereum is much cheaper as compared to bitcoin. One ethereum costs around 2 thousand dollars. Thus 300 ethereum counts would be around 600 thousand dollars. Thus the profit that you would earn from this transaction would again use the profit formula that is selling price minus cost price, and it would be around 200 thousand dollars.
3. Transaction in mining:
Suppose that you mine bitcoins now, and the rate of mining that you would reach before the second half is around 6.5 BTC. You invest 100 thousand dollars in mining rings that contain about ten computers. If one computer produces about 0.015 BTC per day, ten computers will produce about 0.15 Bitcoins per day. Let’s say you keep them running for about a month consisting of 30 days, to simplify the math. Thirty multipliers by 0.15 would amount to 4.5 Bitcoins.
Considering the space, time, energy, installation, and electricity that went inside the mining ring, it would take around 120 thousand dollars. But after you sell the 4.5 Bitcoins for about 40 thousand dollars each, you would get about 180 thousand dollars. Thus the profit that you would earn from this transaction would again use the profit formula that is selling price minus cost price, and it would be around 60 thousand dollars. So Crypto profit calculator is a great tool if you want to calculate profit regarding your cryptos.