How percent (p/l) influences your money
P/L is short for Profit and loss. If you make money, then your return was a positive percent (+%). If you lost money then your return is negative percent (-%)
So if you invest $1000 in Bitcoin and then it goes up 100% in 3 months. You basically add 100% to your initial investment which = a double
$1000 investment + 100% = $2000 (doubled your money)
$1000 investment +200% = $3000 (tripled your money)
$1000 investment + 300% = $3000 profit and = Total money $4000 (your money did a 4x)
$1000 + 1000% = $11,000
So if you type 1000 in a calculator + 1000% = then you get the profit you made (10,000) If you press = again, you get the profit + intial investment ($11,000)
There is many softwares that can do the P/L tracking for you. Built into Coingecko is a portfolio tracker you can use for free if you want to manually enter your transactions , price, quantity, etc into your account which is fine if you're buying and holding . But if you are going to do more transactions, it could be worth monitoring your portfolio with a more automated platform like Coinstats which has a free version but also a more advanced paid version. I've used the free version.
So if you invest $1000 in Bitcoin and then it goes up 100% in 3 months. You basically add 100% to your initial investment which = a double
$1000 investment + 100% = $2000 (doubled your money)
$1000 investment +200% = $3000 (tripled your money)
$1000 investment + 300% = $3000 profit and = Total money $4000 (your money did a 4x)
$1000 + 1000% = $11,000
So if you type 1000 in a calculator + 1000% = then you get the profit you made (10,000) If you press = again, you get the profit + intial investment ($11,000)
There is many softwares that can do the P/L tracking for you. Built into Coingecko is a portfolio tracker you can use for free if you want to manually enter your transactions , price, quantity, etc into your account which is fine if you're buying and holding . But if you are going to do more transactions, it could be worth monitoring your portfolio with a more automated platform like Coinstats which has a free version but also a more advanced paid version. I've used the free version.
Converting Percent to multiples "x's"
So a term in crypto that is used a lot is "x return" as in :
Bob bought a 10x coin. Which basically means he made 10x (1000%) his money in profits on his investment excluding his initial investment.
For example
50% = 0.5x
100% = 1x (100% is the ENTIRE amount of your initial investment)
200% = 2x.
300% = 3x
1000% = 10x (because 10x 100% = 1000%)
10,000% =100x
50,000% = 500x
100,000% = 1000x
1,000,000% = 10,000x
So the above example is how much PROFIT did you make on your investment - your initial investment.
$1000 x 1 or (+ 100%) = $1000 profit + initial investment ($1000)= total balance $2000
$1000 x 2 or (+200%) = ($2000 profit) + initial investment ($1000) = $3000
$1000 x 50 or (+ 50,000%) = 50,000 profit + initial investment ($1000)= $51,000
So the above point is that when using multiples (10x return) then you are looking at the profit return before adding the initial investment. As in the profits alone.
$1000 x 10 = $10,000 profit (1000% return).
Then you add your initial investment ($1,000) to make a total balance $11,000.
Bob bought a 10x coin. Which basically means he made 10x (1000%) his money in profits on his investment excluding his initial investment.
For example
50% = 0.5x
100% = 1x (100% is the ENTIRE amount of your initial investment)
200% = 2x.
300% = 3x
1000% = 10x (because 10x 100% = 1000%)
10,000% =100x
50,000% = 500x
100,000% = 1000x
1,000,000% = 10,000x
So the above example is how much PROFIT did you make on your investment - your initial investment.
$1000 x 1 or (+ 100%) = $1000 profit + initial investment ($1000)= total balance $2000
$1000 x 2 or (+200%) = ($2000 profit) + initial investment ($1000) = $3000
$1000 x 50 or (+ 50,000%) = 50,000 profit + initial investment ($1000)= $51,000
So the above point is that when using multiples (10x return) then you are looking at the profit return before adding the initial investment. As in the profits alone.
$1000 x 10 = $10,000 profit (1000% return).
Then you add your initial investment ($1,000) to make a total balance $11,000.
