Calculate profits

[Robinson66]

I have a question might be stupid.

If Bitcoin is at 35,000 and I am investing 1,000 -5,000 and it goes up to 40,000

What is the best way to calculate ROI

[mk4]

= (sell price - buy price) * BTC bought

= ($40,000 - $35, 000) * BTC0.1

= $500

[TangentC]

If you do alot of trading and need to calculate capital gains or losses for taxes.

https://www.cointracker.io
or
https://cryptotrader.tax

[pooya87]

= (sell price - buy price) * BTC bought

= ($40,000 - $35, 000) * BTC0.1

= $500

$500 minus the fees that you have to pay to do all that:
1- Fiat transaction fees that the bank/payment processor charges for both sending fiat to exchange and from it (after sale)
2- Trading fee that that platform you are trading on will charge which is usually a percentage of the traded volume. For example on $1000 they usually charge 0.1% or $1. This is applied on each trade and percentage may vary.
3- Network fees in case you transfer bitcoin out of the exchange and later have to deposit it back.
4- Capital gains tax that depending on where you live you have to pay the IRS.

Fees #2 and #3 are usually very small.

[hd49728]

OP can check the trading fees on websites of exchanges.

A faster way is use one of the three websites to check trading fees and to make sure info is accurate, double check on the exchange website.

- https://www.cryptowisser.com/exchanges/ (it has a table for taker and maker trading fee)
- https://coinmarketcap.com/exchanges/binance/ (Choose the Exchange tab, and an exchange you want to find info about trading fee. The link is for Binance, you will get a hyperlink for fee at the upper left corner).
- https://www.coingecko.com/en/exchanges/binance#about (Choose Exchange tab, then Spot or other exchange type. There are multiple sub tabs, choose the About tab. For Binance, it is About Binance. You will have a summary info for fees on Binance)

[janggernaut]

hello i am a new trader here i also want to know what coin must i buy, primarily in binance,can someone recommend me what to buy

This is not about what coin you should buy. No one can suggest you what is best coin to buy since no one can predict it in the future.

= (sell price - buy price) * BTC bought

= ($40,000 - $35, 000) * BTC0.1

= $500

Well about that selling price, i think it should be "current price" if OP didn't sell his btc yet.

[Lakai01]

https://www.cointracker.io

I would like to mention Cointracking.info, which I use since 2017 to track my trades and works fully automated.

You create an account and can connect it to your favourite exchanges via API. All your trades are imported automatically and you can see your profits/losses immediately in Cointracking and you can also generate tax reports for whole years.
By the way, Cointracking is free for up to 200 trades, after that there are relatively cheap "lifetime" accounts where you can import and manage several thousand trades.

[TheUltraElite]

If Bitcoin is at 35,000 and I am investing 1,000 -5,000 and it goes up to 40,000

What is the best way to calculate ROI

Net unrealized profit would be the difference in buying price and selling price multiplied by the number of bitcoin bought like mk4 said. However there is a catch here. If you are putting in USD to buy bitcoin - usually that would have been an OTC deal done privately, then this would be the case but minus some "fees" that the OTC dealer would take.

If you are doing the same on an exchange then you would probably selling BTC for USDT. Now you would to convert that USDT back to USD that I am not sure if involves fees so do check that before proceeding.

Tracking your trades using an excel sheet would be a good long term process here. You would likely buy at multiple low points when they reach and then sell gradually. Often you would be not converting USDT to USD by saving that USDT to buy BTC at lower price again to you get the multiplier of the sell/buy price to multiply the asset at hand, if you get my point.

[YOSHIE]

What is the best way to calculate ROI

Oh, yes I remembered something about calculating ROI against Bitcoin.

Although this thread is old, I think it can still be used to calculate Bitcoin ROI well, many people tried it and it worked.

Hey guys, we’ve created this simple Bitcoin Investment Calculator for those of you who are having a hard time figuring out how much you would earn if you bought some Bitcoin NOW and sold them when the price is higher.
https://bitgiftshop.com/bitcoin-investments-calculator/

Feel free to give us any feedback and ideas how to improve it.
Please share and repost if you think it's useful

—
The BitGiftShop Team

Maybe you can try to calculate ROI, sometimes antiques are worth more.

[Lordhermes]

You can check in the thread I created last year about how to calculate profit and loss with trading charges, I just hope this can help to an extent.

[TUTORIALS] Simple Mathematical approach to solving cryptocurrency problems.

You can do that using this formula, it will help.

P = S[F - N(1 + R)]
R=Rate of tax(%), S=Quantity of BTC, F=Final Price, N=Initial Price

[Bitcoin_Arena]

Why stress your head with calculations yet there is automation?  

I like using this tool - https://btc.feh.im (The also consider the exchange's trading fees)

For example if you bought BTC worth $5,000 at $35,000 and sold off at $40,000 with VIP 0 account on Binance. You are going to pay 0.1% fees at both instances when buying and selling.

So this is what you will make in profits in USD value according to the tool

[boumalo]

Why stress your head with calculations yet there is automation?  

I like using this tool - https://btc.feh.im (The also consider the exchange's trading fees)

For example if you bought BTC worth $5,000 at $35,000 and sold off at $40,000 with VIP 0 account on Binance. You are going to pay 0.1% fees at both instances when buying and selling.

So this is what you will make in profits in USD value according to the tool

It's good to have tools but it is helpful to know how to do the calculations and have orders of magnitude to be able to avoid mistakes when you invest and it's especially true if you trade.

[slaman29]

pooya has the best answer, but I guess you really have to specify certain things too especially where you are from. This determines how much you actually pay for your Bitcoin (where you can buy it, which is where the price is). If you pay in local currency you save the forex rate. If I buy from Binance for example I deposit in X currency which is converted at a bad forex usd rate. Then I buy BTC at Binance price which is not so bad.

[Lakai01]

-snip-
So this is what you will make in profits in USD value according to the tool

In my opinion, such tools are only suitable for quickly verifying a single trade (but you can usually still do that with the Windows calculator ). As soon as several trades come into play (or a larger order is split into several trades), such tools, which require manual calculations, are definitely no longer suitable. There are, as already noted here in the thread, many tools that can completely automate this process and most of them are even free!

[semobo]

I have a question might be stupid.

If Bitcoin is at 35,000 and I am investing 1,000 -5,000 and it goes up to 40,000

What is the best way to calculate ROI

Members already posted the way to calculate the profit for a single trade and this is also the way to calculate your multiple trades as well with multiple attempts so you need to maintain a spreadsheet to keep track of your profits which will also be useful for your tax reporting.

[unusualfacts30]

most exchanges have in built roi calculator on their website that you can use to calculate your roi based on your investment. If you want to do it without help you can use below formula with or without calculator.

btc owned * current price = a
btc owned * future price = b

b - a = profit

[xSkylarx]

Simplest way is to do it directly on the exchange you are using. At buy, put the price you've bought and the amount you will use in fiat or stablecoin then in sell, put your target price and the quantity of bitcoin you have when you bought at lower price. Compare the two to get your profit. This is what I've been doing to monitor my profit in trading. You don't have to compute it manually, just be careful to not tap the buy or sell button. Some exchanges have confirmations before placing an order but binance does not have it.