Simply:
ROI shows how much you earned or lost on the investment in percentages.
What is ROI
ROI (Return on Investment) = return on investment.
Used not only in crypto, but also in stocks, real estate, or business.
Thanks to ROI, you can compare different investments with each other.
How is ROI calculated
Formula:
Example from practice (profit)
investment: 10,000 CZK
value over time: 15,000 CZK
Profit = 5,000 CZK
➡️ ROI = +50 %
Example from practice (loss)
investment: 10,000 CZK
value over time: 7,000 CZK
Loss = 3,000 CZK
➡️ ROI = -30 %
Why ROI is important
you quickly see how successful the investment was
you can compare different coins
helps evaluate the strategy
The price alone is not enough – ROI shows the reality.
Common mistake of beginners
"I bought cheap, so I'm in profit."
❌ You don't know without calculation
✔ ROI gives you a clear answer
ROI in crypto
short-term ROI can be extreme
long-term ROI is more important for investors
high ROI = usually higher risk
In one sentence:
ROI will tell you if the investment was really worthwhile – without emotions.