Traditional Investing & Portfolio Theory

What is the difference between nominal and real returns?

Nominal return is the raw percentage gain on an investment before adjusting for inflation; real return is what is left after inflation is subtracted, reflecting the actual increase in your purchasing power. For example, a 10% nominal return in a year with 6% inflation is roughly a 4% real return. The distinction matters because nominal figures can look healthy while real growth is thin, which is how investors mistake a number for genuine progress. Returns of any kind vary and are never assured.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.