Crypto Profit
Profit on a trade from the buy and sell prices, with fees taken off, in money and in percent.
Recent
Formula
How the calculation works
Profit is measured against the cost, not the proceeds. On 0.5 units bought at 30,000 and sold at 45,000 the proceeds are 22,500 before fees, the cost is 15,000, and the profit is 7,455 once the sell-side fee is taken -- 49.7% on the money actually put in.
The percentage is the figure that travels. It can be compared with any other investment, and it makes plain how much of a move has to happen before a round trip through two fees is worth doing at all.
Common mistakes
- Reading a gain off the sell price alone. The buy side and the sell side both matter, and the sell fee comes off before the profit is real.
- Ignoring fees on small moves. A round trip through two fee charges needs the price to move by more than twice the fee before it turns a profit at all.
When to use it
- Use it before closing a trade, so the figure after fees is the one you judge the decision on.
- It is also the tool for setting a target: put in the fee and see what sell price is needed for the move to be worth making.
Worked example
Buying 0.5 at 30,000 and selling at 45,000 with a 0.2% fee gives a profit of 7,455, or 49.7%.
Common questions
Why do fees matter so much?
A round trip charges a fee on each side. On a small move the two fees together can wipe out the gain or turn it into a loss.
Percentage of what?
Of the cost, not of the proceeds. That is the real return, and the basis on which it should be compared with any other investment.