Crypto profit calculators are tools used to determine the potential profit/loss from your crypto investments. Cryptocurrency investment has now become one of the most profitable methods of making money virtually.
The market, which launched in 2009, has since exploded creating millionaires and billionaires in the process. Although this nascent market has been extremely volatile since its inception, it has proven to be worth the risk for early investors.
Most of the people who invest in crypto do not mostly have dependable means of calculating the amount they have made from trading. For those starting their journey as crypto traders, it is advisable to use crypto profit calculators to track the profits. These tools can also be used to project future profits.
Crypto profit calculators are great for anyone who takes their trading operations seriously. To better understand how they work, here is an analogy of the process of crypto trading compared to starting a business.
Related: 4 Steps You Need to Take to Start Investing in Cryptocurrency
To launch a business, you need to make a written and extensive business plan. It features the costs of acquiring the required tools, software, and equipment, renting a place, hiring workers, and calculating the amount of profit expected after a certain period. Although that is the planning process, you get to see the big picture of whether the business that you want to start will be profitable or not.
The same things need to be done by a crypto trader. Trading operations are not easy since the crypto market is highly volatile. Hence, a simple mistake might wipe out all your crypto funds within seconds. Traders should strive to ensure that their trading activities will provide considerable income and are proportional to the capital invested.
How To Use Crypto Profit Calculators
Many crypto profit calculators are available on the internet. These tools can help you in calculating your profits and predicting the amount of money you can make in a trade. To use a calculator, just enter the amount that you wish to invest or have already invested and the purchase price.
Once you enter the amount that you hope to sell the coin for or the amount that you already sold your coin for, the profit will be displayed. You can also use these calculators to determine and monitor the current value of various cryptos. This monitoring is important for projecting future profits since you will have to use the current coin price as your buying price.
The fastest and easiest way to know the market value of any crypto is by Google search, which can offer a real-time price of the coin in the currency that you want.
Although Google gives an insight into the market price, there are multiple limitations. For instance, the Google calculator does not offer the return on investment, profit, or even mining profitability of any crypto. It also does not offer a forecast of the future value of the coin that you may be interested in.
These metrics are crucial to expert investors and beginners who wish to better comprehend the different aspects of trading cryptocurrency. Some of the top crypto profit calculators include Influencer Marketing Hub, DQYDJ, Criptomo, Mortgage calculator, Easy Bitcoin Calculator, Coin Profit, and Loss Calculator, Cryptoground, and Coinstats, among others.
Based on most of the traders from multiple forums, some feel like the crypto profit calculators is not accurate enough. But, others believe that the profit calculators are quite accurate. Essentially, every profit calculator has a different level of accuracy. Thus, it is advisable to conduct in-depth research before deciding to use any crypto profit calculator.
How To Use The Crypto Calculator Tool
You can use the Crypto profit Calculator to determine the possible profit/loss from your crypto investments like Shiba Inu, Tamadoge, Bitcoin, XRP, Ethereum, Solana, Dogecoin, and many others. The best calculators have thousands of cryptos to choose from.
Here are the main steps to follow to calculate profit or loss:
- Start by choosing the fiat currency you used to trade, exchange or purchase crypto. You can type the currency name in the search field and click on it to choose it. For instance the USD, EUR, Yen, or GBP.
- Select the crypto that you purchased. Click or tap the crypto drop-down button to search for the currency that you are looking for or type the name in the search field.
- In the ‘Investment’ space, type the amount of fiat currency that you invested. Alternatively, you can switch to entering the amount of crypto instead of fiat.
- Write the price of the crypto when you bought it in the ‘Initial Crypto Price’ field.
- Then, enter the price of the crypto when you sold it in the ‘Selling Crypto Price’ field.
- In the section labeled ‘Investment Fee’, write the fee (in percentage) that your crypto exchange charges for trading/buying the crypto.
- Enter the percentage fee that your exchange charges for selling/trading the crypto in the ‘Exit Fee’ field.
- Lastly, your profit or loss for the investment that you made will be displayed on your screen.
Related: How To Calculate Crypto Profit And Loss
There are two ways of calculating profit or loss on cryptos. First, you can look at the value of your holdings and compare that with the price at which you acquired them. The other way is by determining the amount of money you made or lost in fiat currency. In general, the crypto profit calculators make this process easy letting you worry only about the best strategies to use to maximize your profits.
