Topic: Bitcoin mathematics (Read 82 times)

My brother you try well well for this your calculations. I no say e fit no too get use because some of us already Sabi d mathematics but you try to tay think this wan come out. As for the dollar cost average method, na better way for people Dem wey wan invest for Bitcoin but dey fear the market volatility. This way, you no need to dey wait for dip before you go invest but you go continue to dey invest the same amount continuously without worry about market price too much.
As for newbies Dem wey no no how to do these calculations make una still try read am even if una no wan comment. E go help una well well.

Normally Bitcoin investment get small mathematical part,  this mathematical part dey very  important to really understand the risk management and fully understand how the money way we invest go take become plenty money.
Make una no fear the calculations no go  choke.
Make we start am small small.
The first one na

Investment amount : this one na the money way you one put for the Bitcoin investment then We get watin then  they call
Bitcoin  quantity : this  one na the quantity of Bitcoin way you wan buy , the formula na

Bitcoin quantity = investment amount divided by the current price of Bitcoin
Which is
Bitcoin quantity=[Investment amount]/[current price of Bitcoin]
Una fit write them down so una no go forget
Then we get
Transaction Costs: this one na the small small commission  way them they add for the transactions you dey Carry out for the blockchain.
 Then
Return on Investment (ROI):
This one na the percentage of profit way you go make based on say you invest.
The formula na

Return on investment = current price of Bitcoin minus the purchased price, times hundred, which is

ROI= [current price of Bitcoin--purchase bitcoin price] ×100
Then we get
Dollar-Cost Averaging (DCA)
This one na investment strategy wey be say you go dey investment a fixed amount when ever you dey invest within a particular time. This one na just to calculate the average cost of Bitcoin
The formula na
Dollar cost average= average cost per bitcoin divided by the Total investment amount times the total Bitcoin quantity

DAC= [average cost per BTC]/[Total investment amount × Bitcoin quantity]

And  Then the last one na

Risk-Reward Ratio:
This one na fraction between the amount way you dey willing to loss and the one you wan gain
The formula na

Risk to reward ratio = potential loss divided by the potential gain

   R/W= [potential loss]/[potential gain]