The Vibe: Your “bang for your buck” score—tells you the percentage gain (or loss) on the money you put into a crypto trade, position, or portfolio.
The Details: ROI measures the profitability of an investment as a percentage of the initial amount invested. The simple formula is: ROI = (Net Profit / Cost of Investment) × 100%. For example, if you invest $1,000 in BTC and sell for $1,500 (net profit $500), ROI = ($500 / $1,000) × 100% = 50%. It includes realized gains/losses after fees but excludes unrealized P&L unless calculating on open positions. In leveraged trading (perps/margin), ROI can be much higher (or wipeouts bigger) due to borrowed funds—e.g., 10x leverage turns a 10% price move into 100% ROI (or -100% loss). Negative ROI means loss. Widely used to compare trades, strategies, or assets; often shown in % on exchanges alongside P&L.
Pro Tip: Always calculate ROI after all fees, funding rates, and slippage—not just price change. Use it to set realistic goals (e.g., aim for consistent 5-20% ROI per trade instead of moonshots). Track ROI over time for your portfolio or copy traders—high short-term ROI often comes with high risk; prioritize sustainable positive ROI with good risk management.