Average Price Formula:
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The average price in cryptocurrency trading represents the mean cost per coin across all your purchases. It helps investors track their investment performance and make informed decisions about buying or selling.
The calculator uses the simple average price formula:
Where:
Explanation: This calculation gives you the weighted average cost of your cryptocurrency holdings, which is essential for determining profit/loss and making strategic investment decisions.
Details: Knowing your average purchase price helps you determine when to take profits, set stop-loss orders, and understand your break-even point. It's crucial for effective portfolio management and risk assessment in volatile crypto markets.
Tips: Enter the total amount invested in INR and the total number of coins purchased. Ensure both values are positive numbers. The calculator will instantly compute your average price per coin.
Q1: Why is average price important in crypto trading?
A: It helps you track your investment performance, determine profit/loss margins, and make informed decisions about when to buy more or sell your holdings.
Q2: How does this differ from current market price?
A: Average price is your personal cost basis, while market price is the current trading value. Comparing both shows your unrealized gain/loss.
Q3: Should I include trading fees in total INR?
A: Yes, for accurate calculation, include all transaction costs and fees in your total investment amount.
Q4: Can I use this for multiple purchases?
A: Yes, simply sum all your investment amounts and total coins purchased across multiple transactions.
Q5: How often should I recalculate my average price?
A: Recalculate after every new purchase to maintain an accurate understanding of your investment position.