Work out crypto average cost instantly with clear inputs, formula shown and shareable results.
Buying fixed currency amounts rather than fixed quantities means you buy more coins when prices are low, which pulls the average cost below the simple mean of the two prices. That is cost averaging working in your favour.
Average cost
Average = total invested / total quantity, quantity = amount / price for each buy
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Because the same money buys more units at the lower price, so the cheaper purchase carries more weight.
It reduces timing risk, not asset risk. A permanently falling asset still loses money.