What is a cryptocurrency investment calculator?

A cryptocurrency investment calculator is a tool that helps you evaluate the potential profit or loss from your cryptocurrency investments. It considers factors such as: How is profit calculated? The calculator uses the following formula to determine the return on investment (ROI) of your cryptocurrency holdings: Example with Solana (SOL):

Should you invest in a crypto index fund?

Being market-cap weighted means Bitcoin and Ethereum make up the bulk of the fund at more than 90% of the total portfolio. “Most passive crypto investors would be best suited to focus on Bitcoin, Ethereum and/or a crypto index fund,” Samsonoff says.

How much crypto should be in your portfolio?

But how much crypto should be in your portfolio ultimately depends on your risk tolerance and beliefs about crypto. In addition to outsized long-term returns, cryptocurrencies tend to have excessive volatility. In the case of the CFA Institute study, the larger the allocation to Bitcoin, the higher the return and the greater the volatility.