Bitcoin trades 24/7 just like a stock or ETF with a current price that’s determined by the bid and ask price.
I decided to log into Coinbase and figure out what my average Bitcoin buy price was so I could compare it to MicroStrategy’s average BTC, a publicly traded company with the largest Bitcoin holdings.
I found out that my average BTC purchase price was $30,371.90. That means I paid just under $31,000 for all of the BTC I bought through Coinbase or received in my BTC Wallet.
How to Calculate Average Bitcoin Purchase Price
To calculate the average purchase price of Bitcoin, you need to add up the total amount of money you’ve spent on purchasing Bitcoin and divide it by the total amount of Bitcoin you’ve acquired.
Cointracker is a free tool that will calculate your average Bitcoin purchase price automatically but you can do it manually too.
Here are the steps to calculate it:
- Gather your purchase records: You’ll need to have a record of all your Bitcoin purchases, including the date of purchase and the amount of Bitcoin purchased, as well as the price at which you bought it in your local currency.
- Convert prices to a common currency: If you’ve purchased Bitcoin at different times and the prices are in different fiat currencies, you’ll need to convert them to a common currency, such as your local currency. You can use a currency conversion tool or a financial website to get the exchange rates for the respective dates.
- Calculate the total amount spent: For each purchase, multiply the amount of Bitcoin acquired by the price in your common currency. Then, sum up all these amounts to find the total amount of money you’ve spent on Bitcoin.
- Calculate the total amount of Bitcoin acquired: Sum up the amount of Bitcoin you’ve acquired in all your purchases.
- Calculate the average purchase price: Divide the total amount spent (step 3) by the total amount of Bitcoin acquired (step 4). The result will be your average purchase price.
Here’s the formula for calculating the average purchase price:
Average Purchase Price = Total Amount Spent / Total Amount of Bitcoin Acquired
For example, if you spent $5,000 in total to acquire 0.5 BTC, your average purchase price would be:
Average Purchase Price = $5,000 / 0.5 BTC = $10,000 per BTC
How to Find Your Average Bitcoin Purchase Price on Coinbase
If you use Coinbase then your average BTC purchase price is calculated automatically.
- Log into Coinbase
- Go to Coinbase.com/Price/Bitcoin
- Scroll down to see your average purchase price