People invest in digital currencies, especially cryptocurrency, for different purposes. It could be due to the want of reliable money or even to eliminate transfer costs. However, one of the main reasons for investing in crypto is to make a profit. Of course, nobody desires to encounter losses.
So what is profit? In a layman's language, profit is the amount that remains after subtracting expenditures and initial costs. Meaning crypto profits are proceeds from cryptocurrency trading.
It is vital to calculate your crypto profit now and then. Not to mention it helps know your crypto progress. Anyway, here is how to calculate your crypto profit.
Utilize a Crypto Calculator
Crypto calculators have certainly made calculating profit easy. Moreover, they are readily available online. All you have to do is get one. The calculator calculates your profits as well as your losses. The best thing is you don’t have to key in digits manually. Most of them are automatic.
Utilize a Spreadsheet
The spreadsheet method of calculating profit is super effective. However, you have to arrange and key in details manually. Some of the details to be keyed in are your current price, selling price, breakeven price, etc. Not to forget you have to input the computer formulae too.
Afterward, you just press a button, and voila. You get your profit calculated. This method can consume time, but it’s undoubtedly worth it.
By Subtracting the Selling Price from the Purchase Price
It is the easiest method of them all. You just need to know how much you bought and sold your crypto for. Then subtract the buying price from your selling price. If you get a positive figure, that's a profit. A negative figure indicates a loss. The method is for sure straightforward.
How to Gain Profit In Crypto
Gaining profit in crypto trading is no challenge at all. The problem is most investors don’t know how to do so. Don't despair, though. Listed for you are ways to make some extra coins from crypto trading.
1) Through Buying and Holding
Buying and holding entails the selling long and short strategy. Selling long is whereby you hold on to your crypto until its price increases. Afterward, you sell it for a profit. During short selling, you expect the crypto price to continue decreasing.
So you borrow the crypto and sell it at the current price. Then you wait for the price to decrease so that you can repurchase it at a lower price. Both ways are great, and you get some profit too.
In lending, you temporarily give away your crypto ownership. You can lend to an investor or even a network. Picture your crypto more like a loan, whereby you’ll receive interest in return.
Mining is the process of creating new crypto. This is possible if you have technical expertise. You get some extra coins in your pocket when you mine for new crypto. How cool is that? To get crypto and some coins on top.
As an investor, you now know how to gain and calculate profit. Start taking charge of your financial records to reap all the crypto benefits. Besides, who doesn’t like to take account of their finances?