ELI5 - What does ROI mean?

Return on Investment, or ROI, is like keeping score on how well your money is doing.

Imagine you lent your friend some money to start a lemonade stand.

After a while, your friend gives you back your money along with some extra as a thank you for helping out.

The extra money your friend gave you is your return on investment.

It's basically the profit or gain you make from investing your money in something.

In the world of cryptocurrencies like $BTC and $ETH , ROI works similarly.

Let's say you bought some Bitcoin a year ago, and now its value has increased.

The difference between what you originally paid for it and its current value is your ROI.

If it's a positive number, congratulations, you've made a profit!

But if it's negative, unfortunately, you've lost money on your investment.

ROI helps you understand how well your investments are performing and whether they're helping your money grow or not.

It's a key metric for investors to gauge the success of their financial decisions.