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Meaning of Average Cost#Definitionof "Average Cost" on the Binance platform:

When you buy cryptocurrency multiple times at a different price each time, **average cost** is calculated based on the total amount you paid and the number of units you purchased.

### How to calculate "average cost" mathematically:

If you buy cryptocurrency in multiple transactions, the average cost is calculated using the following equation:

\[

\text{Average cost} = \frac{\sum (\text{Number of units} \times \text{Purchase price})}{\text{Total number of units}}

\]

### Practical example:

1. **First transaction:**

- I bought 10 units of VANA at $1 per unit.

- Total cost of the first transaction = \( 10 \times 1 = 10 \) dollars.

2. **Second transaction:**

- I bought 5 more units at $1.5 per unit.

- Total cost of the second trade = \( 5 \times 1.5 = 7.5 \) dollars.

### Calculating the average cost:

Now, to calculate the average cost, we add the total cost of all trades and divide it by the total number of units:

\[

\text{Average cost} = \frac{10 + 7.5}{10 + 5} = \frac{17.5}{15} = 1.17 \, \text{dollars per unit}

\]

### Result:

- **The average cost** is \( 1.17 \) dollars per unit of VANA.

This means that any sale will depend on this number to reach the breakeven point or profit.$BTC