Making investments in cryptocurrencies, with Bitcoin, for example, requires a bolder profile, since we are talking about an investment that has high volatility, which can scare away more conservative profiles. However, if you can tolerate the volatility of Bitcoin’s value, know: this was the financial asset that brought the most return to its investors in the last ten years. In 2021, until the beginning of December, its profits represented a very high level, of 85%, something that no other traditional investment, in the year, was able to provide for investors. Thus, even though many people avoid cryptocurrencies due to the high volatility they present, we are still dealing with an investment class that can really provide a profit for those who invest. However, as we are dealing with a cryptocurrency that has decentralization in its conception, it is not always simple to be able to calculate the profits obtained through an investment. This is because, although they are very similar in terms of value, each exchange has the freedom to operate at the value of its own market. As such, Bitcoin is not always of the same value everywhere, which can make it more confusing to calculate your profits. Even so, however, it is possible to make a calculation of the income obtained in Bitcoin in a given period. And that’s exactly what we’re going to talk about today. Discover, then, in another exclusive CriptoFácil article, how to correctly calculate your profits in Bitcoin and other cryptocurrencies!
How to calculate the value of Bitcoin in reais
Whenever you buy a cryptocurrency, be it a whole unit or a fraction of it, the amount you will receive is fixed. That is, 1 BTC will always be one BTC. However, what changes is the way this currency behaves when converted to reais or another currency. Thus, 1 BTC has, in market data on August 19, 2022, the value of 111,863.80 reais, at 1:57 pm. This value data, however, changes quickly, all the time, you might say. Another fact that is also linked to this is that Bitcoin is also a decentralized currency. In practice, this means that there is no official quote for this cryptocurrency and that each exchange will have its own quote. This quote always varies according to the law of supply and demand. Whenever the supply of cryptocurrencies rises in the market, the lower tends to be the value of the asset. The opposite is also valid. Whenever there is a shortage of cryptocurrency, the higher its value. To find out what the cryptocurrency is worth in reais, you can consult it directly on Google or even on CoinMarketCap, or even on the exchange where you will purchase the asset.
How to calculate Bitcoin yield value?
Financial planning and control is essential when making any type of investment, especially when it comes to cryptocurrencies. Given this, to know if you are making a profit in Bitcoin is quite easy, because what you should always keep in mind is how much you invested, in reais, how much Bitcoin you bought and what the current value is when converting to reais. After that, just deduct the transaction fee. See the step by step: In a spreadsheet, make the following notes: Amount invested, in reais; Amount of Bitcoin purchased – a unit or a fraction; Quote at the time of analysis; Transaction fees of the exchange where the purchase was made. Once these values are noted, it is enough to convert them into reais and deduct the transaction fee to know the total value at the moment, then check if there has been an appreciation. If you have made more than one purchase over the period, do not forget to write down all these variables as well, according to the amounts invested day by day.
How price changes occur
Investments made in Bitcoin are of the variable income type and there is no predictability regarding the value that will be reached in a given time, whether short or not. In general, it is possible to say that the cryptocurrency market works in a way that the law of supply and demand is always preserved. The greater the supply of an item, the lower its value tends to be, and the greater its scarcity, the greater its value. Because of this and other facets, Bitcoin and other cryptocurrencies have, over time, come to be seen as quality investments, because whenever there is an investor buying crypto, there is pressure on the market that causes the asset’s value to increase. . However, the opposite is also true, as when there is a large selling movement, the greater the fall in the value of the asset, often resulting in an even more massive liquidation. Because of this scenario, the variation in Bitcoin prices makes this cryptocurrency the most important on the market and, certainly, the most reliable, even though it is a different market from the stock market, which is already consolidated in Brazil. and in the world. In terms of comparison, an effect quite similar to what we are experiencing today with Bitcoin ravaged the market between the years 2000 and 2010, when shares of technology companies such as Amazon and Google hit the market. These actions, in this ten-year period, underwent different transformations, including drops of more than 40%. Today they are two of the most valuable stocks in the world market. Because of this, and in a very general way, these assets end up with high volatility that also end up delivering a high rate of returns. Also read: Tether refutes WSJ claims about tight reserves: ‘disinformation’ Also read: Elon Musk attacks Twitter in new document aimed at ending acquisition of social network
