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What is the meaning of yield on cost in the context of cryptocurrency?

avatarHinson TolstrupDec 17, 2021 · 3 years ago8 answers

Can you explain what yield on cost means in the context of cryptocurrency? How does it affect investment returns?

What is the meaning of yield on cost in the context of cryptocurrency?

8 answers

  • avatarDec 17, 2021 · 3 years ago
    Yield on cost refers to the return on investment (ROI) that an investor receives based on the original cost of their cryptocurrency holdings. It is calculated by dividing the current yield (such as dividends or interest) by the initial cost of the investment. This metric helps investors understand the profitability of their investment over time. For example, if an investor bought a cryptocurrency at $100 and it now generates $10 in annual dividends, the yield on cost would be 10%. This metric is particularly useful for long-term investors who want to track the performance of their investments.
  • avatarDec 17, 2021 · 3 years ago
    Yield on cost is a fancy term that simply means the return you get on your initial investment in cryptocurrency. It's like the interest you earn on a savings account, but for crypto. Let's say you bought some Bitcoin for $10,000 and it's now worth $20,000. If you received $1,000 in dividends or other forms of income from that Bitcoin, your yield on cost would be 10%. It's a way to measure how well your investment is doing over time.
  • avatarDec 17, 2021 · 3 years ago
    Yield on cost is an important concept in the world of cryptocurrency investing. It represents the return on your initial investment, expressed as a percentage. Let's say you bought some Ethereum for $1,000 and it's now worth $2,000. If you received $100 in dividends or other forms of income from that Ethereum, your yield on cost would be 10%. This metric helps you understand the profitability of your investment and can be a useful tool for comparing different investment opportunities.
  • avatarDec 17, 2021 · 3 years ago
    Yield on cost is a term commonly used in the cryptocurrency investment community. It refers to the return on your initial investment, expressed as a percentage. For example, if you bought some Litecoin for $500 and it's now worth $1,000, and you received $50 in dividends or other forms of income from that Litecoin, your yield on cost would be 10%. This metric allows you to track the performance of your investment over time and compare it to other investment opportunities.
  • avatarDec 17, 2021 · 3 years ago
    Yield on cost is a metric that measures the return on your initial investment in cryptocurrency. It is calculated by dividing the current yield by the original cost of the investment. For example, if you bought some Ripple for $1,000 and it's now worth $2,000, and you received $100 in dividends or other forms of income from that Ripple, your yield on cost would be 10%. This metric helps you understand how well your investment is performing and can be used to compare different investment options.
  • avatarDec 17, 2021 · 3 years ago
    Yield on cost is a concept that is often discussed in the context of cryptocurrency investing. It represents the return on your initial investment, expressed as a percentage. For example, if you bought some Bitcoin for $10,000 and it's now worth $20,000, and you received $1,000 in dividends or other forms of income from that Bitcoin, your yield on cost would be 10%. This metric allows you to track the performance of your investment over time and compare it to other investment opportunities.
  • avatarDec 17, 2021 · 3 years ago
    Yield on cost is a term used in the cryptocurrency world to describe the return on your initial investment. It is calculated by dividing the current yield by the original cost of the investment. For example, if you bought some Cardano for $1,000 and it's now worth $2,000, and you received $100 in dividends or other forms of income from that Cardano, your yield on cost would be 10%. This metric helps you understand the profitability of your investment and can be used to compare different investment options.
  • avatarDec 17, 2021 · 3 years ago
    Yield on cost is a metric that measures the return on your initial investment in cryptocurrency. It is calculated by dividing the current yield by the original cost of the investment. For example, if you bought some Dogecoin for $1,000 and it's now worth $2,000, and you received $100 in dividends or other forms of income from that Dogecoin, your yield on cost would be 10%. This metric helps you understand how well your investment is performing and can be used to compare different investment options.