Break-Even Analysis: When Do You Start Making Profit?
In crypto trading, "green" doesn't always mean profit. If you sell at a price slightly higher than you bought, you might still lose money due to fees.
The Break-Even Price
Your break-even price is the price at which your net profit is exactly zero.
Break-Even Price = (Total Buy Cost + Total Trading Fees) / Quantity
Why Calculate It?
Knowing your break-even point prevents you from exiting a trade prematurely. You might see a small gain on the screen, but after exchange fees and potential withdrawal fees, you could be in the red.
Always check your numbers with the Break Even Calculator before setting your sell orders.