YTD is a financial term that refers to the performance of an investment over the period of one year, up until the current day. YTD performance measures how much money has been gained or lost by an investor since January 1st of this year. It can be used as a metric to compare different investments and their relative performance within a given time frame.
In cryptocurrency trading, investors use YTD to measure the gains or losses they have made in crypto investments since January 1st of this year. This helps them determine if their portfolio is performing well enough compared with other investments on the market. Additionally, it can help traders decide whether they should continue investing in certain coins or not based on its past performance over the course of one full calendar year.
Calculating YTD for Cryptocurrency Investments
To calculate your portfolio’s YTD return, you will need to know two pieces of information: The total amount invested at January 1st and then your current value at today’s date minus any fees associated with buying/selling cryptocurrency during that time period. That calculation would look like this: [(Current Value – Initial Investment Amount) / Initial Investment Amount] X 100 = % Return YTD
For example, let’s say you bought 10 BTC at $10k each on January 1st 2021 for a total initial investment amounting to $100k USD and today those same 10 BTC are worth $15k each for a total value of $150k USD after subtracting all fees associated with buying/selling cryptocurrencies between those dates – Your calculated return would be 50% (($150K – $100K)/$100K)* 100 = 50%.
By using YTD calculations investors can better understand how their portfolios have performed throughout the entire calendar year rather than just looking at short term trends which could potentially lead them astray from making rational decisions when assessing long-term returns from their crypto trades/investments..