ROI (Return on Investment)
Definition
Return on Investment measures the profit or loss of an investment relative to its cost, expressed as a percentage. Formula: ROI = (Current Value - Initial Cost) / Initial Cost × 100. In crypto, ROI is highly volatile — Bitcoin's 10-year ROI exceeds 30,000%, while many altcoins have lost 90%+ from their highs. Always consider ROI alongside the time horizon and risk taken.
Why Does This Matter?
Understanding ROI (Return on Investment) is essential for anyone investing in cryptocurrencies or working with blockchain technology. This concept directly influences how projects are valued, how markets behave, and what risks and opportunities exist for investors.
How Does CryptoValue Use This?
At CryptoValue, fundamental concepts like ROI (Return on Investment) feed into our proprietary Value Score — a rating from 0 to 100 based on 10 on-chain and market metrics. Our goal is to help you identify undervalued and overvalued coins, rather than just looking at price.
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