And how to calculate it based on past performance.
I’m just going to get this out the way right now.
I'm terrible at math.
I always have been.
So I learned how to use a calculator instead.
But this isn’t about me.
The crypto market ass has fallen out.
If you are like me, you might be wondering how you can figure out which project is deserving of your hard-earned money? Which project will potentially bring you the biggest gains after the bear market corrects?
Here is a rapid calculation you can do which takes less than 7 seconds to figure that out. Made by a dummy like me, for a...never mind.
Open up CoinGecko or CoinMarketCap.
Get familiar with where to find the price statistics.
On CMC it's in the right-hand panel under ‘Price Statistics’. You have to select ‘Show More’. On CG it's also in the right-hand column under ‘Price Statistics’ only you don't have to select anything, it should just appear. Note: I’m using a desktop.
Open up your calculator app, use a web version, or if you’re old-school, use a physical one.
We have to use an investment figure. Let's go with $500.
Using Bitcoin (BTC) as an example:
In your calculator type 500. Select divide (÷, or sometimes also shown as /) and type in the current price, which for me right now is 26642. Hit equals (=) and the result is 0.0187673598.
Now using this figure 0.0187673598 hit or type the multiply function (x) and multiply it by the All Time High (ATH). Currently, on CMC it is 64000. Hit equals (=) and the result is 1201.
The calculation looks like this.
500 ÷ 26642 = 0.0187673598 x 64000 = 1201.
I did this with the following 10 cryptocurrencies and here are the results.
Note: I did some rounding off here and there. I used the current prices (13 June 2022). I used $500 as my investment.
Here is what $500 invested at today’s price would look if the below cryptocurrency were to reach its All Time High, again.
BTC = $1201
ETH = $1651
XMR = $1704
ADA = $725
BNB = $1347
DOGE = $6083
LTC = $4291
BCH = $14,812
BAT = $3200
EGLD = $6159
A few things to note.
The above is in random order. I chose these cryptocurrencies for no specific reason at all. I like them or have invested in them in the past, that’s about as much thought as I put into selecting these.
Bitcoin Cash (BCH) was the only currency whose ATH did not occur within or around the last year. It had its ATH 4 years ago.
I say ‘with or around’ a year ago because Litecoins ATH was in May 2021 which is just outside of a year ago. And because I was trying to find some consistency among the currencies I chose e.g. all reached ATH within the last year…except for BCH.
I used CMC for my pricing even though I am a fan of CG.
I used Google calculator.
There are a ton of different things to consider when deciding what you should invest in and why. Past performance is just one thing to look at. But it certainly is interesting and easy.
Remember: This is just a little bit of fun. Past performance is no guarantee of what may happen in the future. Have fun with it and let me know what you find.
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