What is the break-even point in Crypto? Understand it clearly so you no longer invest 'blindly'!
'Break-even Point' – The break-even point is the average price at which you purchased a coin. At this point, if you sell, you neither lose nor gain.
For example:
• You bought BTC 3 times:
• 1 time for 10 million VND at a price of $30,000
• 1 time for 5 million VND at a price of $32,000
• 1 time for 5 million VND at a price of $34,000
=> Total capital: 20 million VND
=> Average break-even price: about $31,750
If the price of BTC rises above $31,750, you start to profit.
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Why is knowing the break-even point so important?
• Avoid FOMO – Losing while thinking you are gaining
The market turns green, everyone shouts 'take profit', but if the price has not exceeded the break-even point, you are still at a loss.
• Confident in making decisions
Knowing exactly where you stand helps you be bolder when DCA or more patient when waiting to take profits.
• More effective investment strategy
Understanding the break-even point allows you to allocate capital more reasonably, avoiding mistimed DCA – especially when the market is volatile.
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How to easily track the break-even point
• Google Sheets: Customizable, flexible, suitable if you invest in multiple types of coins.
• Portfolio tracking apps:
• CoinStats
• Delta
• CoinMarketCap Portfolio
These apps will automatically calculate the average price, clearly showing profit/loss over time.
• Note: Don’t forget to add transaction fees and deposit/withdrawal fees for a more accurate number!
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In conclusion:
'Knowing where you are helps you know when to move forward or backward.'
The break-even point won't make you rich immediately, but it helps you invest wisely – and safely.