A crypto calculator is a tool that allows investors to calculate profits when trading in the Crypto market. Using the calculator also helps investors optimize their trading portfolio. Investors can use this calculator for any cryptocurrency and analyze its technical analysis for trading. Let’s join Crypto Trading to learn more about how to use the Crypto calculator!
Using a Crypto calculator in the cryptocurrency market
Crypto calculator helps investors calculate detailed profits and losses with position orders in their portfolio. Investors can completely use the Crypto calculator with coins such as BTC, ETH or even new ICO Altcoins.
How to use a Crypto calculator?
There are two ways for investors to use the Crypto calculator to calculate profits and losses with their portfolio. The first is to compare the value of the cryptocurrency pair that the investor is holding with the price at which the investor bought it. The second way is to enter the quantity and price that the investor bought into the Crypto calculator tool. Then enter the corresponding fees on the tool. They will automatically give the investor’s profit and loss results.
For example, when using the tool, an investor bought 5 BTC at an initial price of 10,000 USD. The time the investor bought 5 BTC was in May 2020. And then the investor sold them in October 2020 at a price of 15,674 USD. At this time, the tool will give the profit that the investor achieved is 2,835 USD. Plus the investment percentage fees and the transaction exit fee, the total profit is 7,835 USD.
See more: Technical analysis: secret trade to increase profits
Calculate Cryptocurrency Taxes with Crypto Calculator
For new investors in the Crypto market, calculating taxes for each trading pair is quite difficult. Currently, there are hundreds of thousands of different cryptocurrencies in the Crypto market. And each cryptocurrency has its own price fluctuations. To calculate cryptocurrency taxes, you need to track all your transactions during the year and find out whether you have capital gains or losses from each transaction.
If this is the investor’s only transaction for the year, you can easily calculate your payout using this number. However, if you buy a bitcoin for $10,000 but sell half for $11,000. And then the investor keeps the rest, things get a little more complicated.
Combine technical analysis with a Crypto calculator when trading
Investors should properly apply coin technical analysis and combine it with a Crypto calculator to optimize profits for their portfolio. This will help investors limit the risk of loss when trading.
In the crypto market, technical analysis is the prediction of future prices by focusing on market trends. Investors using technical analysis can analyze and predict future prices. Although price fluctuations are often short-lived and unpredictable. But there are still signs that the business cycle will be very long.
Technical analysis also helps investors identify Support and resistance in crypto. When the price moves above the upper limit of the resistance level, investors who buy will have the advantage. If the price moves below the resistance level, investors on the selling side will have the advantage. Usually, the charts will be a display of the price history at the previous time. Investors can completely confirm important times through technical analysis.
What Technical Analysis Reflects in the Crypto Market
Using technical analysis, investors can identify trends. Volatility as well as trading volume of cryptocurrency pairs. Some popular trend indicators are MA, and MACD, They help investors quickly identify current market trends. Or warn investors when a new trend is about to start. Technical analysis volatility indicators include Bollinger Bands or ATR. This indicator shows the speed of change regardless of price direction.
They are usually based on past highs and lows. By using price zones that show signs of reversal. From there, investors can determine safe buying zones. Volume indicators help investors recognize the strength or weakness of a trend. Besides, it also confirms a trend through the trading volume of each session. After the trend is formed, it will be confirmed through increased volume.
Using RSI Indicator in Crypto Market Technical Analysis
Use the RSI indicator in technical analysis to find buy and sell points for cryptocurrency pairs. Then investors use the Crypto Calculator tool to calculate the profit and loss for each trading pair.
What is the RSI Indicator in Crypto Technical Analysis?
The RSI is an indicator of relative strength, abbreviated by the phrase Relative Strength Index. They measure the speed and intensity of price fluctuations in the Crypto market. RSI will fluctuate between 0 and 100. If they are in the 30-50-70 range, these are important areas for investors to pay attention to. RSI when greater than 70 is considered to be in the overbought zone. And vice versa, if they are less than 30, they are in the oversold zone.
See more: Instructions for opening an OKX exchange account
Combining RSI with support resistance trading
Support and resistance are price levels where a trend is likely to reverse. Or they may slow down before continuing a trend. And all of these behaviors are likely to repeat themselves in the future. Support is a price level where a trend is falling and is expected to reverse upwards. Resistance is a price level where a trend is rising and is expected to reverse downwards.
Investors when combining two indicators RSI and support resistance. Will help you recognize the reversal zone quite effectively. Because RSI gives out noisy signals with small parameters. Therefore, when combining RSI with support resistance in Crypto. Can help investors be more certain and give higher probability. By combining these two factors, investors can identify the top and bottom areas. And give more chances of success when trading Crypto.
Conclude
Above is information about the Crypto calculator tool and how to apply technical analysis when trading Crypto. In fact, controlling the profit and loss situation in the investment portfolio is very necessary. With smart tools, investors can completely restructure their portfolios. To learn more knowledge when investing in the cryptocurrency market. Don’t forget to follow Crypto Trading more often.
FAQs
Where can investors find Crypto calculators?
Currently, on social networking sites, there are many websites that allow investors to apply a Crypto calculator to calculate their profits.
Should technical analysis tool indicators be combined?
Depending on the needs and experience of each investor in the Crypto market. You can use 1 to many different indicators.
Should you recapture profits when trading cryptocurrencies?
Reinvestment is suitable for investors who want to maintain additional income in the market.
