One topic that isn’t likely to be addressed in the crypto realm is the aspect of keeping records that are involved in portfolio management. Between all the fundamental and technical discussions on Twitter, you will never see anything devoted to this fundamental part of trading.
A proper record-keeping system is the second most crucial aspect of trading, just ahead of security, in my opinion. Without accurate information entry, it’s virtually impossible to determine the risk associated with any investment because the risk is completely subjective. Risk is typically expressed in terms of a percentage of the total value of your assets (ie. the total BTC) which means that your assets are able to be determined (and adjusted) when your numbers are correct.
How do you calculate the Crypto Profit using a Spreadsheet?
One of the most recommended methods of trading in crypto is to calculate percentage profits or the unit cost of the currency by using Satoshi (or BTC) which will provide you with a specific percentage profit. Because cryptocurrency trading is unstable and the price of coins can fluctuate upwards or downwards it is also necessary to find the most loss that you will tolerate during the trade, and beyond which you’ll have to stop the transaction (say 5, 10, or per cent).
For long-term trades, however, you may not want to sell your entire collection with a specific profit threshold. It is possible to determine the number of coins you want to sell to recoup your investment capital, as well as some profits. After that, you let the remainder take the ride. After you have all the parameters you need, are now able to create an order to sell in the exchange app.
Here’s a straightforward task you can complete using this calculator:
If you initially purchased 100 pieces of the currency like Acropolis (AKRO) for 150 satoshis (0.00000150 BTC). The price dropped more to 120 Satoshi (0.00000120 BTC), you bought 100 more units. The price also dropped up to 100 satoshis (0.00000100 BTC), you purchased 100 more units, what is the quantity of units this coin has you need to sell to earn profits of 10 per cent of the profit after the price of the coin doubled? What is the cost per unit for the coin at a loss of 5?
The parameters you must fill in are:
· The name of the coin (e.g. AKRO)
The price of entry for the unit (in BTC) of the coin as well as the number of units of the coin purchased at each purchase level (first buy, second purchase and the third buy depending on what the situation could be). If you purchased the coin for the first time at a certain price, you can only use the for the First Buy section.
Profit margin percentage of capital pull-out at a certain level (e.g. 100%). Long-term traders will always take out their capital when the cost of a coin has increased to a certain percentage. If you want to withdraw your capital once the value for the currency has risen by two times the coin’s value, just enter 100 to obtain 100 per cent.
Extra profit percentage to draw out along with the total capital invested (e.g.10 per cent)
Maximum Percentage Loss to Tolerate (e.g. 5%). If you exceed the percentage limit your stop loss will be triggered.
- The Bitcoin calculator calculates the following:
- Total Investment Capital (in BTC)
- Cumulative Average Unit Price (in BTC)
- Total Number of Units of the Coin you Bought
- The number of coins that you can sell to recoup your capital as well as the extra capital.
- Selling Price to sell this coin (in BTC) in order to achieve your goal.
- The number of units of the coin left after you’ve pulled out your capital and made some profit.
- The price of the unit at a specific per cent loss (in BTC). This will help you understand the price that you can use to set the stop loss on your exchange application. If the price of the coin is higher than the price of this amount the stop loss should begin to activate. You then sell the coin and pay the loss.
How to Calculate Crypto Trading Profit/Loss Manually
Note down the price of entry for each purchase. It is also possible to know the total amount of your investment capital. Once you have these two variables, you can determine the unit cost that will result in any amount of profit.
Method: Business Mathematics Concept
Based on the business knowledge mathematicians;
The Unit profit is the unit selling Price + Unit Cost price
In the world of crypto trading, the unit cost is the price you pay to enter as opposed to it is your selling unit. the price you would like to offer your crypto. Note that if your price is negative that indicates that you sold your cryptocurrency at the loss.
Percentage Profit = ((Unit Selling Price – Unit Cost Price) / Unit Cost Price) * 100
The total Investment Capital = Unit Cost Price * The number of units bought Note that the trading cost is assumed to be minimal here.
The unit selling price to sell a coin in order to earn the desired Percentage Profit is calculated as follows:
Entry Price + (Desired Percentage Profit * Entry Price)
Example: If you purchased 100 pieces of digital coin for 150 Satoshi then at what is Satoshi worth will you be able to sell it and earn 20 per cent of profits?
Price of entry = Unit cost Price = 150 Satoshi
Desired per cent profit equals 20% 0.2
All Investment Capital = Entry price * The number of units purchased
= 150 Satoshi *100 Units = 15,000 Satoshi
The unit selling price will result in a profit of 20%
= 150 + (0.2 * 150) = 150 + 30 = 180 Satoshi
If you decide to sell a hundred units for an average selling value of 180 Satoshi You will earn 20% of the profit.