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What is the total return equation for investing in cryptocurrencies?

avatarOgheneDec 25, 2021 · 3 years ago1 answers

Can you explain the total return equation for investing in cryptocurrencies in detail? How does it work and what factors are involved?

What is the total return equation for investing in cryptocurrencies?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    When it comes to investing in cryptocurrencies, understanding the total return equation is crucial. The equation allows you to assess the overall return on your investment by considering the initial investment, the final value of the investment, and any income generated. By subtracting the initial investment from the final value, dividing it by the initial investment, and multiplying by 100, you can calculate the total return percentage. This equation provides a clear picture of how your investment has performed. However, it's important to note that the equation doesn't account for transaction costs or fees, which can significantly impact your actual return. Therefore, it's essential to factor in these additional expenses to get a more accurate assessment of your investment's profitability.