How is crypto average price calculated?
When a cryptocurrency is purchased multiple times at different prices, weighted average cost should be used instead of a simple price average. Each purchase price is multiplied by the quantity purchased to calculate total investment.
Why use a weighted average?
Because the quantity purchased may differ between trades, a simple arithmetic average of prices may not represent the true cost basis. Weighted average reflects the actual impact of each transaction.
Frequently Asked Questions
Is the crypto average price calculator free?
Yes. The SimutraHub crypto average price calculator is free to use.
How many purchases can I add?
You can add multiple purchase entries and recalculate the weighted average cost instantly.