Crypto is a trading phenomenon that has taken the world by storm. Print and online media have been brimming with all-new Richie-rich stories. The vibes are just tantalizing that hardly one can restrain from this low-hanging fruit of crypto without labor. Nevertheless, do you know that many times the riches also go down the drain? This dark side of the crypto world may not be prominent owing to reasons unbeknownst, but these do exist.
In sum, milking the milch cow of the crypto is not a cakewalk. Ask the pains of her kick incurred during milking. Various living examples got penniless while playing the Russian roulette of crypto. It is also a grim reality of crypto trading that a small chink in the armor snowballs into a yawning deficit in a jiffy. Hence, the first and foremost priority of the crypto trader is to change postures according to the swinging winds.
But here a million-dollar question props up!
How will the crypto trader get to know about the winds of change?
The answer is as simple as the crow flies. The trader knows about the profit and losses streaks by the simple (or might be tricky) calculations.
To facilitate our crypto followers, this blog is dedicated to inculcating the calculation values to novice and veteran crypto traders. These specific skills-cum-strategies would help you make the most of the glittering crypto world. In the same vein, these calculations would help you nip the deficit evil in the bud.
Let’s get to the point and delve deep into the strategies. We are going to list five strategies while taking inspiration from the earlier methods of counting on hands as we are bestowed with an equal number of fingers (thumb – you join the finger squad please, for a while). You need not apply all five strategies. It might not be possible for you too. Just consider one that suits your lineament and show the world what you can!
Here we go!
Pearls of Wisdom:
Before reading the strategies, you need to bear in mind a special piece of advice. Every day, hundreds of netizens lose their hard-earned money while doing crypto trading. These crypto traders do not lose their fortunes in a single fell swoop. There is an incremental build of deficit.
More than often, the crypto traders do not realize the loss trajectory and keep trading until the bells of doom’s day start jingling. This is both a sad and horrific scenario for the virtual trader who puts everything at stake to earn some legitimate amount. The shattered dreams are really painful.
Our fellas! We advise you not to take even a single baby step without calculations. Just assume that calculations are the jugular veins of crypt trading. If you take one step forward without calculation, crypto will push you two steps backward. You cannot fetch even a whiff of success without a calculated mind.
We hope you have understood the importance! Let’s go ahead.
We have picked the five calculation strategies to figure out the crypto profit and loss streaks. We have cherry-picked the most simple but basic strategies that can even be utilized by the trader having basic arithmetic know-how. We are going to enlist and elaborate every strategy with depth with illustrations. The real-life examples will make the understanding of the concept truly easy.
At the end of learning, you would also be erudite enough to pick the strategy that optimally works for you. It should also be borne in mind that not every strategy works on every trader, although a single do works on every.
So, here comes the first golden strategy to calculate the crypto profit and losses in a jiffy!
Do you remember the BODMAS rule? Subtraction is perhaps the first lesson you learned in school. Crypto throws you back towards the pre-schooling days when you were as happy as a sandboy.
Well, the first strategy is to simply subtract the selling price from the buying price. It won’t take more than 30 seconds, and the limpid trading trajectory would be before you. Have a try!
For illustration, we have picked up the most popular coin, Yes! You guessed correctly, it’s BitCoin (BTC). So, for the sake of argument, you bought a Bitcoin for $5,000, and at the very next spike you sold the golden coin down for $10,000.
Do you know how much profit has been added to your coffers?
Well, if you don’t know the answers as of late. Try simple mathematics and subtract $5,000 from $10,000. The happy figure of $5,000 is before you. It’s your legitimate profit. Have a party!
Life is the name of vicissitudes, the same model can be applied to calculate the losses. Now, again suppose that the lucky coin you bought for $5,000 takes a plunge, and you have to sell it down for a mere $4,000 to avoid liquidity.
Do you know the intensity of financial ‘dent’ incurred upon you lately? No! Let’s calculate again.
It’s 5,000 – 4,000 = 1,000. Whoa! You lost $1,000 during this gory ‘rout’. Well, hard luck never remains hard. Try for the softening phase, spring is ahead lad!
Crypto is a volatile world where profits and losses get accumulated in the blink of an eye. Hence, a sane trader should keep an eagle’s eye on market variations. You missed it and the loss will, for sure, hit you. The bump might shred you into innumerable pieces. The virtual ebbs and crests also have good or bad tides for you, you must listen to them. Every market variation portends futuristic values for the trader.
However, on the flip side, the trader should not withdraw from the market with the little jolts nor should she wait for the earthquake to overcome. The approach should be modest and considerable.
Now take a real-life illustration of the second-best coin. We mean Ethereum (ETH). You bought Ethereum for $1,000, and the very next moment your monitor depicts the Ethereum trajectory hitting the new heights by touching the 2,000 thresholds. What does it mean?
Congratulations! You have earned $1,000 within the hundredth part of the second. Which profession, under the sun, could hand you in such smart profits. Crypto is amazing!
Let’s discuss the other half of this scenario too. You bought the Ethereum, and the very next moment, the graph line nosedived into $500. You can’t find such a swift way of losing money in any gamble. Crypto is heart itching.
To get a solid understanding of the profit and loss streaks, you should read the profits into percentage points. You can get the percentage points by the simple multiplication procedures. When you multiply the purchasing amounts, you get the corresponding data points in the following pattern.
1.1 as 10%
1.2 as 20%
1.3 as 30%
1.4 as 40%
1.5 as 50%
The equation goes on like this incessantly.
Let’s take the third example of Cardano (ADA), you bought this virtual currency at the basic price of $2. Herald informs you that you made a profit of 10%. To assess this 10% profit well, you will need to multiply the original price (basic price) by the anticipated profit of 10%. The Equation would be like this, $2% (buying rate) multiplied by (a) 1.1 (10%).
So the back of the envelope calculations portends $2.2. The original value was $2. While $0.2 is the actual profit at your hand.
As these calculations are a bit tricky, we would like to add another illustration. Suppose, the Sweet Summer Trader has eyed a 50% profit and she will surely shut down the crypto trading after getting this desired benefit. What she will do.
She will again convert the data points into percentage points and the remainder of the profit in percentage would be her profit.
Another nifty trick to remember the percentage points is to just add the number “one” every time you multiply by a hundred. The results would be spot-on.
Some software programs help you organize your statistical data. The spreadsheet is one of those. This magical organizational tool provides you with a nice avenue to organize the data. The spreadsheet also allows you to have a backup of all of your transactions’ archives. You need not open your cryptocurrency portal time and again.
Install the spreadsheet software, and get some hands-on experience after watching some video tutorials. Now try to sketch a layout. Your first design can be like this:
- Name of the currency.
- Trading data points.
- Bought up the currency.
- Sold currency.
- Day-wise transaction ledger.
After inputting all the segments, you get a vivid idea about the buying-selling as well as profit-loss streaks. Not even the minor details are missed out. You get a clear idea about the crypto world in a better way.
If the banal spreadsheet option does not click the right cockle of the heart, you may also try built-in calculators. There are myriad cryptocurrency calculators available online that crunch the data in a jiffy. These online calculators help accomplish error-free statistics. Amazingly, most of the calculators are free of cost. Moreover, these calculators ensure data privacy laws and identity theft scenarios. The traders need not worry about data or identity theft while working online.
These amazing crypto-specific calculators are just a single tap away. Browse and cherry-pick the one that suits you well. Crypto experience is relishing to the core.
All in all, you must have a clear idea about the calculations. Earning money from the crypto world is a bit too tricky, you need to have a clear understanding of the calculations. The right calculation is the key to the right profits. We hope you must have fetched the right strategy to do nifty calculations. The spot-on handling of statistics would directly steer you towards the port of success. Adieu!