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What is the definition of total return in the context of cryptocurrency investments?

avatarHarsh PrajapatiNov 24, 2021 · 3 years ago1 answers

Can you explain what total return means when it comes to investing in cryptocurrencies? How is it defined and calculated?

What is the definition of total return in the context of cryptocurrency investments?

1 answers

  • avatarNov 24, 2021 · 3 years ago
    Total return in the context of cryptocurrency investments is the overall profit or loss you make from your investment. It takes into account both the increase in the value of your investment and any income you receive from it. To calculate total return, you add the percentage increase in the value of your investment to any income you earn from it. This gives you a complete picture of how well your investment is performing. Total return is an important metric for evaluating the success of your investments and comparing different investment options. When it comes to cryptocurrency investments, total return can be influenced by factors such as price volatility, market trends, and the specific investment strategy employed. It's important to carefully consider these factors and conduct thorough research before making investment decisions in the cryptocurrency market.