Here’s how to easily calculate your Bitcoin earnings

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The cryptocurrency market is becoming increasingly competitive as more and more people are jumping on the bandwagon, trying to make money by investing in cryptocurrencies such as Bitcoin (BTC). However, many get confused by the whole process and don’t know how to calculate their Bitcoin earnings.

As it happens, return on investment (ROI) is calculated the same way in the crypto world as it is in the traditional financial world. In other words, to calculate the percentage gain of his crypto investment, the investor must first determine the purchase price of the assets.

The next step is to subtract the buy price of the digital asset from its sell price to arrive at the result, which is either a return or a loss on that crypto investment. Then the investor takes that number and divides it by the original purchase price. Finally, the result is multiplied by 100 to arrive at the percentage change in the investment – profit or loss.

Practical examples

Let’s say a person bought $30,000 worth of Bitcoin and sold it for $25,000. This would represent a loss of $5,000 or 16.67%. To arrive at this number, subtract $25,000 (sale price) from $30,000 (purchase price). Dividing this figure ($5,000) by $30,000 (purchase price), the result is 0.167, which, multiplied by 100, equals 16.7% or a loss of -16.7%.

Now, suppose the reverse scenario occurs. The investor buys Bitcoin for $30,000 and resells it for $45,000. In this situation, they would have a gain of $15,000 or 50%. This figure is the result of determining the change between the buy price and the sell price – in this case, subtracting $30,000 from $45,000 and dividing the figure by $30,000. The resulting number (0.5) multiplied by 100 gives 50%, a gain of +50%.

Use a percentage calculator

If the investor is dealing with much bigger and more complicated numbers and/or wants to save time and effort, the Finbolds Percentage Calculator can come in handy. This calculator only asks the user to enter the values ​​(buy and sell prices), and the result (loss or gain) of his Bitcoin investment is available immediately.

Calculation of bitcoin earnings using the percentage calculator. Source: FinboldBitcoin Price Analysis

Meanwhile, investors who bought Bitcoin a month ago and sold it today would see a gain of 32.92%, as the first crypto was trading at press time at $22,855. Its current price is also down 0.12% on the day but still up 7.93% on its weekly chart.

30-day Bitcoin price chart. Source: Finbold

Meanwhile, the flagship decentralized finance (DeFi) token has a market capitalization of $440.22 billion, which ranks it as the largest crypto asset by this metric, according to CoinMarketCap data retrieved by Finbold on May 24. January.

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