You can hardly go a day without finding anything about Bitcoins or other sorts of cryptocurrency from your friends or social media. Cryptocurrency is a sort of virtual money that can be purchased and sold. Unlike other currencies, Bitcoin is not produced officially by a government or licensing authority. They are not legally regulated because they are anonymous. As a result, their values might vary greatly. We designed our bitcoin profit estimator to help you determine the value of your cryptocurrency investment.
Crypto Profit Calculator Tool
If you’re a beginner, a Crypto Profit Calculator may help you evaluate the possible profit/loss from the cryptocurrency assets that you buy or invest in. It’s the most comprehensive Bitcoin calculator. Alternatively, the ultimate cryptocurrency calculator with hundreds of coins to pick from!
To calculate crypto profit/loss, follow these steps:
Steps To Use Crypto Profit Calculator
- Selec fiat currency of your country with which you traded, exchanged or purchased cryptocurrency. To look for a currency, click or press the currency drop-down button. Simply enter the currency name into the search area. When you find it, click it.
- Select the virtual currency that you purchased. To find the currency you’re looking for, use the crypto drop-down menu. Type your cryptocurrency name in the search area
- Enter the amount (fiat) you spent in the ‘Investment’ section. For instance, $1000.
- Enter the value of the cryptocurrency when you acquired it in the ‘Initial Crypto Price’ section.
- Enter the value of the cryptocurrency when you sold it in the Selling Crypto Price area.
- Enter the cost (in percentage) that your exchange charges for buying/trading the cryptocurrency in the ‘Investment Fee’ column.
- Enter the charges that your exchange imposes for buying or selling the cryptocurrency in the ‘Exit Fee’ section.
- Lastly, the screen will reveal your profits and losses for your investment.
Ideas for Investing in Cryptocurrency
1. Do your research
Before investing in cryptocurrencies, do your homework. It is very much essential to investigate before investing in cryptocurrencies. You should know exactly the purpose of your investment, the reason for choosing a cryptocurrency, and have a broad understanding of how the coin or token operates. Examine the coin’s plan, whitepaper, social media outlets, and exchanges where it is listed before investing.
Examine its pricing history as well as the total supply of coins/tokens generated. Don’t give in to FOMO and invest in a cryptocurrency that has just soared in value due to excitement; this is a certain way to lose money rapidly! Avoid speculative currencies and instead concentrate on initiatives with real-world applications.
2. Be ready for market volatility
Volatility is a significant factor in bitcoin investment. There is no getting around that.
Here are some pointers on what to do if market turbulence knocks:
Don’t be alarmed! When things become tough, don’t panic. Keeping cool while others worry is one of the biggest measures of whether or not someone is knowledgeable about crypto investment.
Understand why prices fluctuate, and then proceed appropriately. If it appears that a significant news item has caused all markets to go crazy overnight, consider studying additional information on those articles before reacting too quickly.
3. Diversify your investment portfolio.
Diversification is another crucial consideration when investing in cryptocurrency. Putting all eggs in one basket is the worst approach. Always try to expand your investment portfolio by investing in a variety of assets and never invest more money than you can potentially lose.
You should study projects thoroughly before participating in them so that you understand what they do and how they work, as well as the people behind them.
You should also build a portfolio of multiple currencies or tokens (rather than putting all of your capital into one currency) so that if one project fails, there are others that still have room for development.
4. Create a Stop-Loss Order
A stop-loss order is used to sell an asset at a specific price. It can be used to minimize losses or preserve earnings, but if the price falls below the stop-loss level, the stop-loss order is converted into an order book. That is, your deal will be carried out at whatever price you choose.
Here’s how to use stop-loss orders to protect your cryptocurrency investments:
- It is critical that you choose a realistic position because prices might move considerably over short periods of time like a day or a few hours.
- Also, if you want to shield yourself against currency depreciation or hyperinflation, join the market with both selling and buying orders at the same time; this is known as ‘hedging.’
5. Invest in ICOs carefully
The first step in being a smart ICO (initial coin offering) investor is to understand everything you can about the enterprises that fascinate you. Before determining whether to invest, read about the team, technology, and audience behind each project.
Invest in initiatives in which you have faith. It is essential to invest just what is appropriate for your financial circumstances and risk tolerance level. Look for teams with proven track records and solid foundations. If a crypto firm has been in hype for a period without any major issues, this tells a lot about its authenticity and should offer investor protection when determining whether or not to participate in similar projects in the future.
6. Don’t scare during a decline
Don’t sell in a panic during a decline. Bitcoin, for example, has seen downward trends since its creation, and more are anticipated in the future. When the market falls, fight the desire to sell everything you possess and reinvest in comparable assets that are currently performing better.
7. Boycott Pump and Dump Schemes
The cryptocurrency industry is constantly changing. While there are many genuine businesses, there are also those that are out to make a quick profit by taking the benefit of individuals who don’t understand any better. They accomplish this through pump-and-dump methods, in which they acquire coins, hype them up on social media with phony news items, and then sell them when the market value rises.
If you are presented with an investment option that offers high returns, especially if it seems too good to be true, do your homework before giving over any money! It may appear paradoxical at first, but it will reward you in terms of the positive outcome of your investments in the long run.
Summary
As an investor, you should always conduct thorough research and ask probing questions about how well a project fulfils its market potential. Also, you have to use a crypto exchange to buy or sell your preferred crypto assets. If you want to explore the best crypto exchanges in Canada, click here.
We invite you to discover more about the project’s innovation, how it operates, and whether it has a community or real-world application. These factors may not appear to be significant at first look, yet they might decide whether your investment will reward you or not. By following these seven recommendations, you may position yourself for getting an achievement as a crypto investor.