How to calculate the weighted average price of your crypto
When do you need the average price?
When you buy a cryptocurrency multiple times at different prices, knowing your weighted average cost is essential. This tells you exactly what market price is needed for you to be in profit.
Step-by-step method
- List all your purchases with quantity and unit price.
- For each purchase, calculate the total cost: quantity × price.
- Sum all total costs and all quantities.
- Divide the overall total cost by the total quantity = weighted average price.
Example
Buy 1: 0.1 BTC at 25,000 € = 2,500 €. Buy 2: 0.2 BTC at 30,000 € = 6,000 €. Buy 3: 0.05 BTC at 20,000 € = 1,000 €. Total: 0.35 BTC for 9,500 €. Weighted average price = 9,500 / 0.35 = 27,142.86 €.