Dec 23, · Consider you bought BTC at the price of 1BTC = $ today. So tomorrow 1BTC increases its value to $. So now if you want to calculate how much profit or loss you have incurred use the same profit/loss formula you use. Profit/loss = (today’s price of 1BTC * X bitcoins you bought) - (price you bought 1BTC at * X bitcoins you bought). Profit Threshold calculates the point at which your trade will begin to make a profit after trading fees have been taken into consideration. If you have bought bitcoins (going long) the threshold will be the point that selling all your bitcoins will give you a profit in fiat (USD). For example, if the current price of Bitcoin is USD $10, and you’re planning to buy USD $1, worth of Bitcoin, you’d get BTC for your USD $1, If the price of a Bitcoin goes up 50% to USD $30, each, then your BTC has also increased by 50%, thereby valuing your BTC at a great USD $1,
How to calculate bitcoin profiteasy Bitcoin Trading Calculator - no fuss, no mess, calculate those Bitcoin trading profits!
Here's a guide to help you understand the differences between coins, tokens and altcoin. Measuring your gains or losses in BTC value is, therefore, the most accurate way of valuing your investments.
This method of calculating your trades takes into account the opportunity cost of holding on to Bitcoin as opposed to using your BTC to purchase other altcoins. Opportunity cost refers to the potential gain that one could have received but gave up in the pursuit of another course of action.
Your main purpose of investing in altcoins is to ensure that it generates a better return than Bitcoin, and your actual gains and losses must be measured against BTC as every coin is traded against it.
A satoshi represents the smallest unit of a Bitcoin and there are ,, satoshis per one bitcoin. However, if Bitcoin tripled in price and you initially used BTC to buy your altcoin, then theoretically you have just lost in satoshi or Bitcoin value as you would have been better off just holding on to your BTC instead of buying the altcoin. It is honestly a hassle to calculate your gains in satoshi as the volatility of Bitcoin makes it hard for you to accurately determine your current value.
However, there are some great free tools that you can use to mitigate the complication. If you're on your way to buying your coins, here's a list of useful guides and resources to get you started:. Includes all the features of this site wrapped up in an easy to use app.
Profit Threshold calculates the point at which your trade will begin to make a profit after trading fees have been taken into consideration. Please note that the easy Bitcoin Trading Calculator is to be used for guidance only.
It is only accurate to 8 significant figures. I want to calculate:. Note that bitcoin markets don't "close" in the sense that a stock market might.
Bitcoin closing prices are as reported by an exchange. On top of reporting differences, different exchanges may have different bitcoin prices for each date. We believe the trends are correct for the tool, and it's a reasonably good guess at how a typical bitcoin investor would have performed between two dates. However, this tool is for informational or research purposes only. Do your own due diligence. The bitcoin return results quoted should in no way be taken as advice on whether to invest in bitcoin or other cryptocurrencies.
Cryptocurrencies, as an asset class, have demonstrated more volatility than any of the other investments we've featured on this site in calculator format. See, for example, the Litecoin return calculator. For bitcoins, the time of day any bitcoin was bought or sold makes investor performance vary wildly.