Despite all the problems and skepticism that followed cryptocurrencies all these years, we can see that the concept has managed to survive from 2009 when the BTC was introduced. With each surge in its worth, it managed to accumulate a plethora of people around the concept. For people who don’t know much about these surges, there have been three of these. The first major surge occurred back in 2012. Around that time, the story about a person who bought pizza with a BTC started to spread.
The second one occurred in 2017 when the price skyrocketed and many people started to pay attention to BTC and all other cryptocurrencies. The last and biggest one happened in 2023 when the price rose more than 200%. Sure, this attracted attention from pretty much all the governments who are now interested in taxing all the traders on their soil. Maybe you didn’t know, but even though there’s no personal information involved in transactions, they are still taxable.
The reason is that the address used for them is traceable. So, the government has all the meanings to tax them right. Therefore, traders will need to start calculating their taxes. But it needs to be said that they need to determine their profit from participating in this market. Especially in cases when the BTC rises, which doesn’t happen too often, but when it does many people are receiving a healthy profit. Sometimes, it can be pretty too hard for people to have a complete understanding of the process.
Therefore, we would like to talk about it in higher detail. So, stay with us until the end of the article to find out about all the particularities. Without further ado, let’s get started.
How Can You Calculate Profits of BTC?
Generally speaking, there are two main ways you can determine the profit of your participation in the market. We will present you with those two.
Many people are not aware of the fact that there are around 1.5k tokens and coins that are available on the market. Sadly, the majority of them cannot be acquired by using any kind of fiat currencies. The only way for traders who are interested in buying these is by giving BTC and converting it into these tokens and coins.
So, it can be said that the BTC has become a base country for all other cryptos. When you think about it, it makes perfect sense since it is the first one. It is referred to as the king of all cryptos. It is something like USD is in the world of fiat currencies.
When someone says altcoin, you can see that the person addresses all other tokens and coins who are not BTC, excluding Ethereum. Ethereum has managed to establish itself as its crypto with a lot of potentials to grow in the future. Anyway, you can measure all the profits and gains by taking a look at the BTC’s price is probably the easiest way for you to measure them.
The easiest way you can do it is by calculating the trade that comes into the account when trying to invest in other coins. Without any doubt, you should take it into account when deciding if you want to invest in them or keeping your BTCs for the time being.
When you decided to invest in other cryptos, you will need to make sure that the return is much better than keeping Bitcoin. The name of this unit of measurement is Satoshi. For people who are not aware, Satoshi Nakamoto is a person who invented Bitcoin and the whole cryptocurrency concept. In one BTC there are a hundred million Santoshi. To this day, there isn’t a better way of determining the profit of BTC, especially when it arises.
Fiat Currency Value
The next method of determining your profit involves fiat currencies. Surely, you will have to work with the currency in your native country. Nevertheless, the commonest fiat currencies used in the world of Bitcoin are USD, GBO, EUR, KRW, and JPY. We are talking about a pretty easy way of determining the profit you have received. The previous one we’ve mentioned can be pretty confusing to traders who are new to the market. However, this one is pretty easy.
Let’s say that you are prepared to invest $2k into BTC. At the same time, the price of BTC is $20k. So, you are getting 0.10 coin, right? When Bitcoin’s price rises by 50% and is now $30k, your profits get higher by that same percentage. You will receive a profit of $1k in that case. When you take a look at it, you will surely understand how the whole process goes. At the same time, you will see that despite all the features exclusive to this concept, you will see that it works pretty much like all the markets in the world.
Should You Use a Calculator?
We’ve mentioned the fact that a vast majority of governments in the world have decided to impose taxes on BTC. Therefore, many traders will need some sort of help during this calculation. Thankfully, many different apps can represent a pretty big help. At the same time, there are apps called crypto trading profit calculators, who can do these calculations instead of you.
They work pretty much the same as you would do, but when we are talking about higher numbers, the process of calculation will get much shorter. Therefore, you should opt for using a proper trading profit calculator since they can provide you with much help down the road.
For a majority of people in the world, the whole concept of BTC is pretty confusing even in this day and age. Sometimes, even the simplest of things may sound too complex for people who are new in the market.
Therefore, we’ve decided to provide our readers with how they can determine the profit in moments when Bitcoin’s price rises. As you can see, it is much easier than the common folk presumes. To get a better understand about of whole market, many traders decide to join a community. If you are interested in it, check for more info here https://immediate-edge.co