How to calculate the APY return on a cryptocurrency investment?

1 answers

• Dec 18, 2021 · 3 years ago
  Calculating the APY return on a cryptocurrency investment is crucial for understanding the potential profitability of your investment. Here's a simple step-by-step guide: 1. Determine the initial investment amount in cryptocurrency. 2. Find the current value of your investment after the specified time period. 3. Calculate the profit by subtracting the initial investment amount from the current value. 4. Divide the profit by the initial investment amount. 5. Multiply the result by 100 to get the APY return percentage. For example, if you invested 1 Bitcoin when it was worth $10,000 and after a year, the value of your investment grew to $15,000, the profit would be $5,000. Dividing $5,000 by $10,000 gives you 0.5, and multiplying by 100 gives you an APY return of 50%. Keep in mind that the APY return calculation assumes that the investment value remains constant throughout the specified time period and does not account for any additional deposits or withdrawals. I hope this explanation helps! If you have any more questions, feel free to ask.
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