Cryptocurrency Calculator
Calculate crypto returns, DCA strategies, and portfolio performance
Crypto Investment Calculator
Understanding Cryptocurrency Investment
Cryptocurrency investment involves buying digital assets like Bitcoin, Ethereum, and other altcoins. These investments can be highly volatile but have shown significant long-term growth potential.
Investment Strategies:
- Lump Sum: Investing a large amount at once - higher risk but potentially higher rewards
- Dollar Cost Averaging (DCA): Regular smaller investments to reduce volatility impact
- HODLing: Long-term holding strategy regardless of price fluctuations
- Diversification: Spreading investments across multiple cryptocurrencies
Risk Considerations:
- High Volatility: Crypto prices can fluctuate dramatically
- Regulatory Risk: Government regulations can impact prices
- Technology Risk: Smart contract bugs or network issues
- Market Risk: Overall crypto market sentiment affects all coins
US Crypto Tax Considerations:
- Capital Gains: Short-term (under 1 year) taxed as ordinary income
- Long-term Gains: 0%, 15%, or 20% based on income level
- Mining/Staking: Treated as ordinary income at fair market value
- Form 8949: Required for reporting crypto transactions
- IRS Guidelines: Follow IRS Notice 2014-21 and Revenue Ruling 2019-24
Disclaimer: Cryptocurrency investments are highly speculative and volatile. This calculator is for educational purposes only and should not be considered financial advice. Always do your own research and consider consulting with a financial advisor.