The market of digital currencies can be construed as a very highly volatile space that anyone who is risk-averse should steer clear of. In fact, many of the users who have entered the blockchain frontier in an effort at making easy money after being inspired by stories of crypto millionaires have been left penniless and threadbare due to their utter lack of knowledge of the possibilities and risks involved within the space. Cryptocurrency trading is as much a matter of luck as it is a matter of skill that involves in-depth analysis of various technical indicators and charts.
Few have the patience necessary for actually analyzing dozens of charts in search of meager profits, since that would entail being engaged in a full-time job. In addition, the profitability one can expect to reap from a cryptocurrency is no longer in the astronomical figures that had graced the market in the early ICO era of the 2017 to 2018 period. The most users can expect from the digital assets being traded on the current market is in the region of 4% to 7% annually, depending on the sway of the market. Some staking platforms offer slightly higher returns in the 9% to 10% region. Any service offering more can be automatically deemed a fraud and a scam, since providing such high profitability to users would entail either extensive high-risk loaning or simple Ponzi schemes.
Before even engaging in the cryptocurrency market, users should conduct extensive research, since modern cryptocurrencies are far more complicated than banal schemes of pumps and ensuing dumps. Most users in the modern situation on the market are aimed at long term growth, placing their bets on the applicability of the cryptocurrency in question within the larger Web3 domain as a useful asset, rather than a speculative instrument. However, said usability depends on a broad range of factors, such as individual project traction, international financial regulation, financing, institutional investor involvement, geopolitical situations, macroeconomic influence, and much more.
The combination of these factors affect not only the mainstays on the market, like Bitcoin, which drag the entire market, but also projects that wish to go global. As such, users willing to enter a market can first make use of a rather handy instrument called the crypto profit calculator, also sometimes called the profit/loss indicator, or the investment calculator.
The Crypto Profit Calculator Relying on a Soothsayer
Upon seeing a crypto profit calculator many would think that it is more of a scam itself. In light of the abnormally high level of uncertainty in crypto prices and the involvement of countless indicators used for determining trends, it would seem that such a tool is truly unreliable. However, the crypto profit calculator is actually a very complicated instrument. And its core purpose is forecasting how much a cryptocurrency is likely to cost within a selected timeframe.
The crypto profit calculator is designed to carry out very highly sophisticated mathematical calculations on potential gains or losses a user can sustain if they decide to enter a specific asset. The instrument combines complex trend analysis tools that are concealed from the user’s sight, showing only the end numbers on a convenient and intuitive dashboard.
All users are required to do is enter the asset they are interested in, the timeframe of interest, and the amount in question. The respective fields then match within the crypto profit calculator’s system and compare them to available aggregated market data. The result then shows the potential yield of said asset, or loss thereof. The automatic nature of some crypto profit calculators makes them indispensable tools for traders. In fact, some of the crypto profit calculators on the market are integrated into exchange dashboards and specialized trading terminals for instant access and assessment of a selected crypto. A crypto profit calculator can also perform the calculation of gains and losses in automatic fashion in conjunction with the tools connected to it by the trader. The convenient API that comes with such tools is very versatile and is adjustable to specific trading strategies a trader wishes to apply and predict profits and losses on.
By calculating the range of difference existing between prices of a specific asset in question at different junctions in time, the crypto profit calculator can reliably predict a rather narrow margin of profit and loss, giving traders a good enough space to operate in.
Key Takeaways
When using a crypto profit calculator, users will have insights into how much a certain digital currency will cost at a specific point in time. It is not necessary to hold any specific asset, considering that the readouts are all hypothetical with a margin of error in play that needs to be considered before relying on a crypto profit calculator as a definitive instrument. Users must always exercise caution and bear in mind that the market is a volatile space and no instrument will ever be able to guarantee full certainty about the course a cryptocurrency’s exchange rate will trace within a specific timeframe. The future is uncertain and many factors can and will influence a digital currency’s price, regardless of what the aggregated data of a crypto profit calculator can state.
