BullHow it works
Your average price is the total you spent divided by the coins you hold. Buying more at a lower price pulls that average down. The question is how much you need to buy to reach a specific average.
Formula
Example
You hold 1,000 USDT of BTC at an average of 60,000 (about 0.016667 BTC). The price is now 45,000 and you want an average of 52,000. You need to buy about 857.14 USDT more, nearly doubling the position.
The catch
The closer your target is to the current price, the more you have to buy, and the amount grows very fast. Averaging down also increases how much you lose if the price keeps falling. Decide on a maximum position size before you start, and never average down a leveraged position without checking the new liquidation price.
Frequently asked questions
Why can the target not be equal to the buy price?
You can only approach the current price. Reaching it exactly would need an infinite amount of money.
Does this work for shorts?
This version is for long positions and spot holdings.
What if I already averaged several times?
Enter your current average and the total invested. You can get both from the DCA calculator.
Results are estimates for education only and are not financial advice. Always check the numbers on your exchange before you trade.
Averaging Down in Crypto: Smart Strategy or Trap?
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