How does Coinbase calculate the average cost of my cryptocurrency purchases?

3 answers

• Traxx M14Sep 15, 2024 · 10 months ago
  Sure! Coinbase calculates the average cost of your cryptocurrency purchases using a method called FIFO (First-In, First-Out). This means that the first cryptocurrency you purchased will be the first one sold or used for calculations. It helps ensure that the average cost is accurate and reflects the actual order of your purchases.
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• Ahmad FaisalSep 16, 2023 · 2 years ago
  Coinbase calculates the average cost of your cryptocurrency purchases by dividing the total cost of all your purchases by the total quantity of cryptocurrency you bought. This gives you the average price per unit. It's a simple calculation that provides a fair representation of your average cost.
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• Rohith MohiteFeb 07, 2023 · 2 years ago
  When it comes to calculating the average cost of your cryptocurrency purchases, Coinbase uses a weighted average method. This means that the price of each purchase is multiplied by the quantity, and then divided by the total quantity of cryptocurrency you have. It takes into account the different prices at which you bought the cryptocurrency and gives more weight to the purchases with larger quantities.
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