Ethereum is a cryptocurrency based on blockchain technology, and its profit can be calculated in the following ways:
1. Mining revenue
Ethereum can be obtained by mining, that is, using computers to solve complex mathematical problems to create new Ethereum. The number of etheric coins obtained by mining depends on the current difficulty coefficient, computing power and mining reward. At present, the mining reward of Ethereum is given to each square, and the reward of each square is 2 Ethereum, but with the passage of time, this reward will gradually decrease.
Therefore, the calculation method of mining income is: mining income = reward per block x number of blocks obtained by mining.
2. The difference between buying at a low price and selling at a high price.
Ethereum can also make a profit by buying Ethereum at a low price and waiting for the price to rise before selling Ethereum. This method usually requires holding ether coins for a long time and waiting for market changes. So the calculation method of this kind of income is: price difference income = selling price and buying price.
3. Participate in the Decentralized Finance (DeFi) agreement of Ethereum.
The DeFi agreement of Ethereum provides users with a way to gain profits by participating in various financial products and services, such as deposits, loans and liquidity provision. The benefits of this method depend on the type of DeFi protocol and the market conditions in which users participate.
Therefore, the profit calculation method of Ethereum is different due to different income methods.