To calculate the return on an investment, subtract the amount you pay for it from the amount you make when you sell.
🤓Nerdy Tip
When you trade on an exchange, you’re usually charged a fee each time you buy and sell. Fees are always a drag on investment returns. There are many exchanges that charge 1% or less; if you’re paying more, it’s probably time to reconsider.
Current cryptocurrency prices
Additional resources
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Crypto and taxes: You’ll owe taxes on any profits you earn from crypto. Learn about when it might make sense to pay for crypto-specific tax software when you’re filing.
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Crypto tax rates: Find your tax bracket, and find out why holding for one year before selling means lower taxes.
Neither the author nor editor held positions in the aforementioned investments at the time of publication.
This post was originally published on Nerd Wallet
