What Is “My Cost” in Crypto Trading? This Is Very Important for You Who Frequently Buy and Sell Coins!
In the crypto world that goes up and down like a roller coaster, it is very important to know your actual position: are you making a profit or a loss? One way to find the answer is by understanding the concept of “My Cost.” Although this term often gets overlooked in trading applications, it is actually crucial to help you make buy or sell decisions.
What Is My Cost, Anyway?
“My Cost” (sometimes also called average buy price) is the average price at which you bought a cryptocurrency asset. So, if you bought coins gradually at different prices, my cost will show what the average is.
A Simple Example:
You bought Ethereum (ETH):
0.5 ETH at a price of Rp30 million
0.5 ETH more at a price of Rp40 million
This means your total ETH is 1 ETH, and your my cost is:
> (0.5 × 30 million) + (0.5 × 40 million) = 15 million + 20 million = 35 million
So, you can consider that you bought ETH at an average price of Rp35 million per coin.
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Why Is My Cost Important?
1. To Avoid Confusion: Are You Making a Profit or a Loss?
Sometimes we see the current price rising from yesterday, and we get happy immediately. But compared to your my cost, you might still be at a loss! Well, my cost helps you see the real picture.
2. Suitable for Those Who Like to Save in Crypto
If you use the DCA (Dollar Cost Averaging) strategy — that is, buying regularly every week/month regardless of price — then my cost will continue to change. This can help you know when your strategy starts to yield results.
3. A Guide on When to Sell
By knowing my cost, you can set a realistic selling price target (take profit). Or if the price drops significantly, it can be a consideration to cut loss or buy again to lower your average purchase price.
But Remember, My Cost Is Not Everything
Although my cost is important, don't just focus on that. You also need to look at:
Transaction fees that may affect your total expenses
Market sentiment (news, regulations, etc.)
Technical and fundamental analysis of the coins you hold
And most importantly: don't be too emotional! Just because your my cost is higher than the current price, don’t stubbornly refuse to sell or add positions without careful consideration.
Conclusion: Know Your Position, Then Take Action
By knowing my cost, you become more prepared to make decisions. Trading crypto is not about luck, but about the right strategy and information. So, let's start paying attention to your my cost from now on. Check your portfolio, record each transaction, and use that data as a smart trading tool.
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📩 Do you have funny or bitter experiences about my cost? Share them in the comments!
