I am new to Bitcoin and would like to know how to calculate the amount of profit made when Bitcoin rises. With stocks a point is equal to $1 and I am required to pay the full value of the stock so calculating profit when the stock rises is very easy. Right now, 1 Bitcoin is worth $11059.51 however I am allowed to invest less money for a small piece of it. I can invest $100, $500, or any amount less than what Bitcoin is worth. I am confused on how to calculate profit. If Bitcoin rises and to $20000.00, and I have only invested $100, how much profit will I make? Is there any easy way to calculate the actual profit of Bitcoin rising when someone invests in a small piece of it rather than buying 1 Bitcoin? Thanks for your help.
The simplest way to calculate would be:
averagecost = ((BTC[t0] x USD[t0]) + (BTC[t1] x USD[t1]) + (so on))/total_BTC
t1 and so on are different time when you bought.
The above gives you the average cost for all your BTC
Now to know the profit, use the below formula:
profitloss = (current_BTC_price - averagecost) x total_BTC
profitloss is negative, then you have a loss.
profitloss is positive, then you have a profit.