How does a Cryptocurrency Calculator work?
- Written by Anna Melnikova
You probably heard about cryptocurrency calculators, but different types of calculators solve different tasks: quick profit calculations, converting coins, estimating your earnings from mining hardware, etc. Using resources from Gridbot, Let’s see how each of them works and how you can use them.
Crypto trading profit calculators
The most straightforward way to calculate your profit is as follows:
Subtract the buying price from the selling price and multiply the result by transaction size.
E.g., you buy 2 Bitcoins (BTC) at $17.200 and sell them at a price of $19.800. 2 Bitcoins (BTC) is the size of your transaction.
This means you have $5.200 of profit. But this doesn’t account for fees or other details.
A profit calculator can save time if you often conduct a number of these calculations and reduces the chance of error. We’ll review just a couple of calculators just to show you what they do.
Sabe.io is an educational platform that offers a lot of tutorials, classes, and several tools. Among the provided tools you can find a simple profit calculator.
To calculate your profits, you just need to pick a currency, enter the amount and the price that you bought it for. The calculator will then use the current price from CoinMarketCap and calculate how much you gained or lost, depending on how the price has changed since your purchase.
Easy Bitcoin calculator
This is a Bitcoin-only profit calculator, but it is more sophisticated than the Sabe calculator and has more options. There is also a mobile app version.
It can calculate the profit threshold as well as profit/loss, you can choose if you are shorting or going long, and this calculator also includes the commission you pay to the exchange service.
You can search for other calculators online, as well as in mobile stores, and find the one for you.
These types of calculators are the most widespread. They calculate the amount of one currency you can get for the other. Be it crypto or fiat currency. They will help you out when you need an etn to btc calculator or a btc to usd one. They are easy to find, and their functions are similar, so we’ll only mention the CoinMarketCap calculator as a popular example. Simply enter the amount you wish to convert, and choose currencies you want to sell and buy.
Mining profitability calculators
If you are familiar with mining, you probably know that the factors that affect mining profitability are: the hashing power of your mining rig, power consumption, cost per kWh, and your pool fee.
Mining profitability calculators will help you to get everything right and see which currency is worth your while.
Calculate your mining profit per week, month, or even per year for the most popular coins.
BTC.com Mining Calculator
This calculator offers more options but calculates only the profit of mining BTC. You can add multiple mining rigs, difficulty increases, profit ratios, start and end dates, and other details.
Based on this data BTC.com mining calculator will estimate your profit, total revenue, and total electricity costs.
Cryptocurrency Tax Calculators
After your coins are already bought, sold, and converted, the next stage is using a cryptocurrency tax calculator. These tools are more complex and can really save a lot of time.
This calculator can calculate your gains and losses from trading, mining, or investing. CryptoTrader.Tax calculator uses transaction history from all of your crypto platforms, exchanges, mining pools, etc., to generate your capital gains/losses forms and income reports. Importing your transaction history takes just a few clicks.
You can use these documents to file cryptocurrency information with your tax return. You can also import these reports into platforms like TurboTax.