DCA in Crypto — How to Actually Calculate Your Average Buy Price

Dollar-cost averaging (DCA) — buying a fixed amount of crypto on a regular schedule regardless of price — is one of the most
recommended strategies for beginners, and for good reason: it removes the pressure of trying to time the market perfectly.
But here's where most people get the math wrong: they think their "average buy price" is just the average of the prices they bought at. It
isn't — unless they bought the exact same dollar amount every single time.
Here's the actual formula:
Average Buy Price = Total Amount Spent ÷ Total Coins Purchased
This is a weighted average, not a simple average. Example: if you bought $100 of ETH at $2,000 (0.05 ETH) and then $100 of ETH at
$1,000 (0.1 ETH), your average buy price isn't ($2,000 + $1,000) ÷ 2 = $1,500. It's actually:
$200 total spent ÷ 0.15 ETH total = $1,333 average
Notice how the average skews toward the price where you bought more coins, not just the midpoint between your two purchase prices.
This distinction matters enormously if you're DCA-ing weekly or monthly over a long period — your mental "rough average" and your
actual weighted average can drift apart significantly over time, especially during volatile months.
Why this matters practically: your real breakeven point (the price at which you start being in profit) is based on this weighted average,
not a simple one. Traders who track the wrong number often think they're at breakeven when they're still slightly underwater, or vice
versa.
If you're DCA-ing into any coin and want your real average buy price calculated automatically (fees included), Trades Checker handles
this calculation for you — just log your buys and get an accurate weighted average instantly.

For the perfect and accurate calculation:
TRADES CHECKER