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What is the average cost per share for digital currencies?

avatarAmalieDec 26, 2021 · 3 years ago1 answers

Can you explain the concept of average cost per share for digital currencies in detail? How is it calculated and why is it important for investors?

What is the average cost per share for digital currencies?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    Calculating the average cost per share for digital currencies is essential for investors to understand their investment performance. It is calculated by dividing the total amount invested in a cryptocurrency by the total number of shares owned. This metric helps investors assess whether they are making a profit or a loss on their investment. If the average cost per share is higher than the current market price, it indicates a potential loss. Conversely, if the average cost per share is lower than the market price, it suggests a potential profit. By tracking the average cost per share, investors can make informed decisions about buying or selling digital currencies based on their investment goals and risk tolerance.