Cryptocurrency calculator, converter – which one is the best?
With the growing popularity of the cryptocurrency industry, newer and more interesting tools are springing up like crazy. Theoretically, they are supposed to make things easier, but they quickly introduce doubts. In this article, we will take a closer look at cryptocurrency calculator – converter tools and other more advanced calculations related to the world of digital currencies. These are great solutions for anyone who is interested in investing in this area or has already invested some funds. But how to find solutions that will be work for us? What to pay special attention to? What should your decision be based on? We come to help.
Types and functions – Cryptocurrency converter
The basic and the most popular ones are the converters related to Bitcoin, which allow you to calculate how much the purchase will cost you at a given moment or how much you’ll gain from selling. Their additional functions are usually the options of including the commission of your chosen exchange and calculating the tax due on this transaction. More extensive ones allow you to calculate whether the sale at a given moment will be profitable. After entering the amount of currency you have and the rate or date of purchase, those tools will provide you with the estimated average profit or loss, the amount of fees and the ratio of fees to profit.
Other, much more advanced cryptocurrency calculators allow you to not only convert the digital currency to the traditional one, but also allow you to quickly present the value of your funds in other currencies, both digital and traditional. They are harder to use, they require much more knowledge of the market, however they’re a great tool for advanced and intermediate traders, whose strategy is not only to buy and sell at the right times, but also to smoothly move their funds at a profit between currencies. These tools may also allow you to generate extensive reports based on the set parameters. No wonder that websites ran by companies offering such advanced analytical services often require you to purchase of the full version of their tool in a subscription system and require user verification.
Somewhere in the middle, you can find calculators covering the majority of popular cryptocurrencies, allowing for simple and quick conversions. If you’ve encountered a Cryptocurrency converter in the past, it was probably one of those. They’re usually perfectly sufficient for most people trading with private funds, as they provide most of the necessary options. Unfortunately, due to the popularity of this type of service, it is easy to find an inaccurate calculator, which would overgeneralize the data or results, or would use outdated or uncertain data on rates and fees.
The last category that needs mentioning includes calculators for people who mine cryptocurrencies, i.e. the so-called miners. Just as with converters, those can be divided into several subcategories, but that’s not what this article is about. In short, these are more or less advanced tools that allow people involved in “mining” of cryptocurrencies to calculate the financial expenses they must incur in order to obtain a certain amount of currency. Among the parameters taken into account by such converters, we can distinguish, among others: the computing power of our mining rig, the cost of electricity per kWh, the electricity consumption generated by our mining operations and the planned operating time of the devices and their output cost. More information about cryptocurrency mines and their mining can be found on our website.
What to consider when making a decision which cryptocurrency calculator is the best?
To answer this question, you first need to define your needs and expectations from a cryptocurrency calculator and how you will use it. If you trade only one currency as a beginner or amateur, choose a calculator dedicated to only this one currency, because it will be the most accurate thanks to specialization. You should also pay attention to the intuitiveness of the interface, as well as the readability and understandability of the presented data. Investments based on fast turnover of only one currency require precision, which is something you can’t achieve with confusing tools. Such a calculator will also be great for a layman, as it will show an interactive view of the costs and profits of a possible investment.
For those who are more skilled in the market, or simply undecided, intermediate Cryptocurrency converters might prove a good choice. They will allow you to keep track of the current stock exchange rates of many currencies at the same time, and will facilitate the decision to sell or buy a specific one. However, you should remember about the high market saturation as because of it you might encounter tools varying greatly in quality. We will talk about the choice in terms of quality later in the article.
We recommend the most advanced tools to be left to professional traders, financiers dealing with the digital market and analysts. This is due to three simple reasons: they require very specialized knowledge, they aren’t free, and the specific features and unique solutions of individual systems can be extremely confusing. Usually you won’t even need most of the data and functions those tools offer.
How to recognize a good cryptocurrency calculator? It’s a matter of quality.
We have already mentioned that you can find a lot of various converters in the market, meant for both professionals and beginners, created by enthusiasts. If you don’t want to step into the proverbial landmine, you need to pay attention to several aspects when choosing.
You will be able to reject the worst ones at first glance, because they look very amateurish, even funny. Another thing that you should pay attention to is the environment of the calculator – perhaps it has links to current information, a brand blog, or a FAQ. Current entries will be a good lead, as they should indicate whether the project is still under development and whether its owner hasn’t yet forgotten about it.
Subsequently, it would be a good idea to identify the data source that the cryptocurrency calculator uses for crypto conversions. Such information should be generally available on any decent website. The most important thing is that the source from which the conversion is derived is reliable, and it would be best if the rates were determined on an ongoing basis from exchanges constructing live stock reviews.
If, despite this, you aren’t able to determine the quality of service you are dealing with, or you simply don’t want to waste however many hours to make sure your choice is the best, you can always choose a simple calculator. Such devices allow you to convert any currency, but they require manual verification and completion of all data, not only the quantity, but also rates, commission or fees. It is a very safe choice, but using it requires much more time, and as everyone knows – time is money.
Is it wise to use several calculators / Cryptocurrency converter at the same time?
It all depends on what are your needs. Using several cryptocurrency calculators at the same time allows you to to bypass the verification process described earlier to some extent, you can quickly check the things that interest you and average the results. However, it is important to remember that despite gaining time of conversion, you lose out on accuracy, which can have tragic consequences. Emotions and inaccuracy are the worst advisors to anyone investing on the stock exchange, and this is why you should use external tools and various analytical methods to reduce the irrationality of our decisions as much as possible.
To sum up, Cryptocurrency converter is extremely useful tool, but you must, just like with virtually every service related to trading in digital currencies, use them in an educated manner. Don’t grab just the first instrument that you see, take your time. Define your goals, analyze all available options and make an educated decision to choose tools that will actually help you to successfully conduct your investments.