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If I know the exchange rate, how can I calculate the value of some amount bitcoins in my native currency?
How do I calculate the value of some amount of bitcoins in my native currency?
Answers
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0.005 * 229 would give you the value of BTC in USD. You'd have to add transaction costs to that, which depend on your exchange.
Sure it would. lol ;-) I think this answer is a bit old. Answer is simply {BTC AMOUNT} * {Your exchange rate} (Without using static amounts.) – bshea – 2017-12-21T03:36:43.027
Well yes. Since I wrote the answer the question was changed (18 months later) to remove the values that were in the original question and to which my answer referred. – jgm – 2017-12-22T11:24:44.263
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I will explain how to calculate the value of some amount of bitcoins in terms of USD, but obviously the USD can be replaced by any other currency, and the corresponding exchange rate.
There are three figures involved in this calculation:
- The value in USD.
- The exchange rate, which gives you the relation of USD to BTC.
- The amount of bitcoins.
If you look at the units of the figures, you can figure out the following formula:
value in USD = exchange rate * amount of bitcoins
Or expressed in the units of the terms:
[USD] = [USD/BTC] * [BTC]
As you can see, if you multiply the exchange rate [USD/BTC] with the amount of bitcoins [BTC], the units of the right side will be reduced to [USD], which is what we are looking for.
Example:
We have 0.005 BTC and the exchange rate is 200 USD/BTC.
exchange rate * amount of bitcoins = 200 USD/BTC * 0.005 BTC = 200 USD * 0.005 = 1 USD
You can also turn the equation around to calculate any of the other terms:
To calculate the exchange rate, you take the amount of USD you paid, and divide by the amount of bitcoins you received.
exchange rate = 'value in USD' / 'number of bitcoins'
To calculate the number of bitcoins you might buy with a given amount of USD at a specific exchange rate, you divide the amount of USD by the exchange rate:
number of bitcoins = 'value in USD' / 'exchange rate'
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Let exchange rate = a; Amount in BTC = b; Amount in your native currency e.g Naira = a*b. For instance: You are given exchange rate to be BTC/NGN = 380 and you have 0.00548 BTC, The Naira value will be 380 * 0.00548 = 2.0824NGN.thanks
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Let Preev help do the math for you!
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{BTC AMOUNT} * {Your exchange rate}
Further: Google/Searching would have been the proper place to get this answer.
(Hint: "currency conversion math" as some keywords.)
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Just multiply both. Because 1 BTC (Bitcoin) = 50000 (Not now), and you have 0.04, (you have 0.04 of Bitcoin) 0.04 x 50000 = Your Ans.
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Calculating the price of Bitcoin based on the Bitcoin/USD exchange rate will probably not give you the exact actual cost of Bitcoin in your native currency. The price in your native currency is set by the supply and demand on a local exchange that deals in your own currency. This can vary by as much as 10-30% e.g. South Africa & South Korea at times.
So, you ask, would that mean there is a difference in value between Btc/USD, Btc/Native and USD/Native? Yes, that is what arbitrage is based on and many take advantage of the difference to make a profit wherever Btc is valued higher. So bottomline, if you're looking for exact exchange rate look on a local exchange.
5I didn't know this was the grade school math SE – dchapes – 2013-04-10T00:22:28.063
3@DaveC There's no need to be rude to him. – Nick ODell – 2013-04-10T04:53:02.943
Dave, i just wasnt sure and i dont know why i got negatives for this, it was an honest question. – Sarmen B. – 2013-04-10T05:04:02.767
While it is baffling to me that someone would have to ask about that, it's just been asked again (for the n-th time), so I am proposing to create a lightning rod question here. – Murch – 2015-01-14T16:07:42.623