Calculate Bitcoin Profit: 5 Simple Steps

The continuous widespread of the whole cryptocurrency industry is worth looking at, nevertheless, the choice one makes, that of, connecting to this web of crypto is certainly decisive in nature.

While most decide to take on this journey of becoming a millionaire, there are still most with multiple questions, in and around, the crypto world - the most common of them is the calculation.

Owing to the most popular and valuable virtual currency - Bitcoin takes the lead when accounting for the number of people owning the coin, thus making it not only popular but at this time, the main crypto. But how does one calculate Bitcoin? Are you an owner but still somehow fail to decode the calculation of the Bitcoin profit?

If this sounds about right, then you’ve arrived at the right place of discovery as we, through this quick blog will solely focus on the calculation of Bitcoin in 5 simple steps. Let’s get started!

Disclaimer: We want to emphasize that this is not financial advice. Cryptocurrencies operate in a volatile market, where values can drastically fluctuate in a blink of an eye. It is imperative to conduct thorough research and seek guidance from a qualified financial advisor before investing.

Table Of Contents
    Calculate Bitcoin Profit

    Digging Deep Into The Question

    The most asked or concerning questions about the calculation of Bitcoin profit revolves around the investment made initially and how it affects the changes in the cost of Bitcoin.

    Let’s decode this through an example;

    Clare, a customer chooses to purchase Bitcoin worth $60 when it was worth $30,000 per coin. Then, how much would she have if the cost was to suddenly jump to $36,000? Also, how then to calculate it? If you are thinking of simple maths and spending hours on this, then let us just stop you there.

    Although it is a made-up example, the scenario is rather true that most often persists in the investor's minds quite before they even make their initial investment and/or start trading.

    Trading in crypto is quite popular, there are markets that exist around the world with significant price differences between the exchanges. Therefore, this is where the trader happens to take advantage of this price difference and then uses the crypto arbitrage bots to make money.

    Bitcoin Calculator: Straightforward Maths

    First things first, getting the scare out of the way, the calculation of Bitcoin, as lengthy and exhausting as it may sound, is rather based on simple and straightforward maths to help you easily get the numbers you desire.

    You must first try and use fiat/traditional currencies when calculating, we recommend using the United States dollar as it is still the go-to currency, if not, you may also choose to use - the Euro (EUR), the Japanese Yen (JPY), the Great Britain Pound (GBP), or the Swiss Franc (CHF).

    To understand better, let’s take an example:

    Say the current price of 1 Bitcoin is $10,000 and you happen to purchase $1,000 worth of it. As easily understandable, you now own about 0.10 Bitcoin (BTC) for the money you invested based on the current market value of the currency.

    On the other hand, if the cost of BTC suddenly jumps to $15,000, then the worth of the BTC would also increase by 50%. Here, your balance will now be worth $1,500 and if cashed out, you will own about $500 of pure profit - Easy enough?

    No rocket science behind the calculation, although it might get a bit overwhelming with less rounded values and numbers, there are many calculators and exchanges where one can accurately get the calculations for the Bitcoin profit.

    You might also want to make use of the Bitcoin calculator to help make the calculations a little easier to do.

    Simply put:

    1. Take the Bitcoin spent into account
    2. Then check the value of 1 BTC at the time of purchase and the current value of 1 BTC
    3. Now, calculate the difference between the old and the current value in percentages

    The profit calculated is the same as the difference

    Bitcoin Trading and Exchanging: The Alternative Way Of Calculation

    The alternative way of calculating the profit is through satoshis ( the unit lower than bitcoin), named in the founder honor of bitcoin Satoshi Nakamoto.

    The worth of one bitcoin is 100,000,000 satoshis, it works in the same way where cents are less than the unit for dollars and pennies are for pounds.

    Satoshis are necessary as most currencies (unlike BTC) cannot be bought with traditional money. Here, you need to first own bitcoin, then break it to satoshis, and then trade them in order to obtain the other cryptocurrencies. This is the reason why most people choose to get the BTC batch first and then everything else.

    The main reason why investing in altcoins is considered to be more fruitful is to help get a better return as compared to Bitcoin. Here, you would be measuring all the gains and losses against BTC as all other virtual currencies are traded against and measured in it.

    So, if you wish to purchase crypto worth $0.30 per coin and use satoshis to double, then you must automatically double the number of satoshis too to revert to more BTC.

    Simply put:

    1. Purchase any other cryptocurrency with satoshis
    2. Check its value against BTC
    3. Wait for the value of that crypto to rise so that the initial investment increases

    Now, convert it back to satoshis to earn BTC in profit


    As you can see, the world of crypto is very unpredictable and at times can get a little too overwhelming to calculate and plan. While most of you would agree, it's majorly a play of randomness and luck involved that could either help reach heights or experience extreme loss.

    Nevertheless, the calculations for the Bitcoin profits are at least made easily through the free online converters (as linked in this blog above) and tools that make it easier and safer to keep an account of the profits. At the end of the day, it's worth the hustle and investment.

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    I'm a filmmaker with extensive training in multiple sectors of content creation whose films have been shown all over the world. I have also served as a speaker and jury member in multiple events. Nonetheless, in recent years, I became extremely disappointed with the course of the art world in general, and as consequence, I've developed an interest in topics I believed would become crucial for the future, namely, cybersecurity, self-education, web design, and investing in various assets, such as cryptocurrencies. All those events have driven me to launch RushRadar.