Cryptocurrency Profit Calculator
This calculator helps you to see how much money and profit you have made from your investments.
Crypto Profit Calculator
Date of purchase
Investment's current value
Return on investment
Currency's current price
Table of contents
You can calculate how much money you could have made with this cryptocurrency profit calculator. Just fill in the values of your favourite cryptocurrency and our calculator will tell how much profit you have made.
Cryptocurrencies are digital or virtual currencies that are underpinned by cryptographic systems. They make it possible to pay securely online without the need for intermediaries. "Crypto" refers to the many encryption algorithms and cryptographic technologies that protect these entries, such as elliptical curve encryption and public/private key pairs.
You can either mine cryptocurrencies or buy them from cryptocurrency trading platforms. Many e-commerce sites don't allow you to purchase cryptocurrencies. In reality, most cryptocurrencies, even the popular bitcoin, can't be used to make retail transactions. The rising value of the cryptocurrency has made them a very popular trading tool. To a lesser extent, they can be used for cross-border transfer.
How to calculate crypto profit?
To calculate crypto currency profit, you need to subtract the selling price from the cost price of the cryptocurrency. This is by far the the simplest to calculate your profit and loss of cryptocurrency.
What is a blockchain?
Blockchain technology is the key to Bitcoin and other cryptocurrencies' functionality and appeal. Blockchain is an internet ledger or a series of blocks that are connected. Each block contains transactions that have been independently verified and signed off by every network member. Every node must independently verify each new block before it can be confirmed.
Types of cryptocurrency
Bitcoin is the most widely used and valuable cryptocurrency. Satoshi Nakamoto (an anonymous inventor) created it and presented it to the world in 2008 via a whitepaper. There are thousands upon thousands of cryptocurrencies on the current market.
Each cryptocurrency claims to be different in function and specification. Ethereum’s ether sells itself as gas to the underlying Smart Contract platform. Ripple uses XRP to facilitate transfers among other geographies.
Bitcoin became public in 2009 is the most popular and most covered cryptocurrency. With a total market capitalization of $1.2 trillion, more than 18.8 million bitcoins were in circulation in November 2021.
Numerous other cryptocurrencies, also known as "altcoins,” have been launched in the wake of Bitcoin's popularity. Some are clones or forks to Bitcoin. Others are new currencies that were created from scratch. These are Solana, Litecoin Ethereum, Cardano, and EOS.
Advantages and disadvantages to Cryptocurrency
With the intention to revolutionize financial infrastructure, cryptocurrencies were created. As with all revolutions, there are tradeoffs. The current stage of the development of cryptocurrency is characterized by many differences between the theoretical ideal and actual implementation. Here are some advantages and disadvantages to cryptocurrency:
Advantages of cryptocurrencies
Cryptocurrencies represent a new, decentralized paradigm for money. This system doesn't require banks or other monetary institutions as intermediaries to ensure trust and protect transactions between two parties. A system using cryptocurrencies eliminates the chance of a single point failure (e.g., a large bank) that could trigger a chain of crises across the globe, such as the one in 2008 due to the collapse of American institutions.
It is possible to transfer funds directly between two people using cryptocurrencies but without the assistance of a third party such as a bank or credit card company. Public keys and private keys protect decentralized transfers like these. There are also different incentives such as proofs of work or stake.
The speed of cryptocurrency transfers between transacting parties is faster than standard money transfers because they don't involve intermediaries. Decentralized loans such as flash loans are a great example of decentralized transfers. These loans can be made without any collateral and are executed in seconds.
Cryptocurrency investments could generate income. The value of cryptocurrency markets has risen dramatically over the last decade to almost $2 trillion. Bitcoin was worth more than $862 Billion in crypto markets on December 20, 2021.
One of the most important use cases for cryptocurrency is being tested by the Remittance Economy. Cryptocurrencies such as Bitcoin can be used as intermediate currencies to streamline money transfers across border borders. A fiat currency is converted into Bitcoin (or other cryptocurrencies) and transferred across borders. Then, it's converted to the destination fiat currencies. This simplifies and costs less money to transfer money.
Disadvantages of cryptocurrencies
Although they are claimed to be anonyme forms of transactions, cryptocurrencies have pseudonymous origins. They leave behind a digital trail that can be deciphered and used by the Federal Bureau of Investigations (FBI). This gives rise to the possibility of federal and state authorities being able to track ordinary citizens' financial transactions.
For criminals, cryptocurrencies are a popular tool for money laundering and illicit purchase. Dread Pirate Roberts is a well-known case. He ran a dark internet marketplace for selling drugs.
Cryptocurrencies are supposed to be decentralized. Their wealth is distributed between multiple parties on a blockchain. However, ownership of cryptocurrencies is highly concentrated. However, ownership is highly full.
One of the main features of cryptocurrencies is their accessibility to anyone who has an Internet connection. Mining popular cryptocurrencies take a lot of energy. In fact, in some instances, the energy required can be as high as that consumed by entire countries. Mining has become a lucrative business for large corporations with billions in revenues due to its high energy costs and unpredictability. An MIT study shows that 90% of mining is done by 10% of miners.
While cryptocurrency blockchains can be highly secure, it is possible to hack other crypto repositories such as wallets and exchanges. Many cryptocurrency wallets, exchanges, and wallets have been compromised over the years. This has led to millions of dollars in "coins stolen."
Prices can fluctuate in cryptocurrencies that are traded on the public markets. Bitcoin has experienced rapid rises and falls in its value. It reached $17,738 by December 2017, before falling from $7,575 to $7,575 to the end of 2017.
What is Cryptocurrency in plain English?
Cryptocurrencies are digital assets that can be used to make secure online payments.
How can you get cryptocurrency?
An investor can acquire cryptocurrency via popular crypto exchanges, such as Coinbase, or apps like Cash App. Brokers are also available. A popular way to invest is via financial derivatives like CME's Bitcoin futures or other instruments such as Bitcoin trusts and Bitcoin ETFs.
What's the point of cryptocurrency?
Cryptocurrencies offer a new way to make money. Their goal is to improve existing financial systems to make them more efficient and less expensive. Their technology allows transacting parties to decentralize existing economic systems independent of banks and intermediary institutions.
Is it possible for you to create a cryptocurrency?
Mining generates cryptocurrencies. Bitcoin mining generates Bitcoin. It involves downloading software with a full or partial history of transactions in its network. Anyone can mine cryptocurrency if they have an Internet connection and a computer. However, mining is energy-intensive and resource-intensive.
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Parmis is a content creator who has a passion for writing and creating new things. She is also highly interested in tech and enjoys learning new things.
Cryptocurrency Profit Calculator English
Published: Tue Feb 01 2022
In category Financial calculators
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