ROI, or Return on Investment, is a calculation used to measure the gain or loss from an investment relative to its original cost. In cryptocurrency investing, ROI measures the potential profit earned by holding and trading cryptocurrencies over a given period of time.
To calculate your ROI in cryptocurrency investments, you will need to take into account all costs associated with buying and selling crypto as well as market fluctuations that may have occurred during the specified time frame. Your total return can be calculated simply by subtracting your initial investment from your current value (or profits).
For example, if you invested $100 in Bitcoin at the start of 2017 and now it’s worth $1000 today then you would have achieved a 900% return-on-investment (ROI). That means for every dollar you initially invested in Bitcoin, it has yielded nine dollars back.
It’s important to note that calculating returns on crypto investments can be very difficult due to their volatile nature; however there are several tools available online which help make this process easier such as CoinMarketCap Profit Calculator and CryptoCompare Portfolio Performance Tracker. Additionally many exchanges provide built-in features which allow users to track their portfolio performance over time – helping them better understand how they are doing overall when it comes to their cryptocurrency investments.
