What is the realized rate of return formula for investing in cryptocurrencies?
DelirDec 26, 2021 · 3 years ago3 answers
Can you explain the formula used to calculate the realized rate of return when investing in cryptocurrencies? I'm interested in understanding how this formula works and how it can help me evaluate the performance of my investments in the crypto market.
3 answers
- Dec 26, 2021 · 3 years agoThe realized rate of return formula for investing in cryptocurrencies is calculated by taking the difference between the final value of your investment and the initial investment, dividing it by the initial investment, and then multiplying the result by 100 to get the percentage return. This formula helps you determine the actual return you have achieved on your investment in cryptocurrencies, taking into account any gains or losses incurred during the investment period.
- Dec 26, 2021 · 3 years agoAlright, let me break it down for you. The realized rate of return formula for investing in cryptocurrencies is pretty straightforward. You take the final value of your investment, subtract the initial investment, divide that by the initial investment, and then multiply the result by 100. This will give you the percentage return on your investment. It's a useful tool to evaluate how well your crypto investments are performing and to compare them with other investment options.
- Dec 26, 2021 · 3 years agoWhen it comes to calculating the realized rate of return for investing in cryptocurrencies, there are a few steps involved. First, you need to determine the final value of your investment by taking into account any gains or losses. Then, subtract the initial investment from the final value. Divide that result by the initial investment and multiply by 100 to get the percentage return. This formula helps you assess the profitability of your crypto investments and make informed decisions based on the actual returns you have achieved.
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