When you already own a cryptocurrency and decide to buy more of the same coin, you may expect Binance to display two separate cost-price lines: one for your previous purchase and another for your latest purchase.
However, you may notice that the cost-price line remains in one position or moves to a new position instead of displaying two separate lines.
Why does this happen?
The reason is that Binance uses an average cost price rather than displaying a separate cost-price line for every purchase.
1. How Binance Calculates Your Average Cost Price
When you buy the same cryptocurrency multiple times, Binance combines the purchases and calculates one average purchase price based on the total amount acquired.
For example:
First purchase: 1 BTC at $100,000.
Second purchase: 1 BTC at $80,000.
Your total investment is $180,000, and you now own 2 BTC.
To calculate your average cost price, Binance divides your total investment of $180,000 by the total quantity of 2 BTC.
This gives you an average cost price of $90,000 per BTC.
Instead of showing two separate lines at $100,000 and $80,000, Binance displays one average cost-price line at $90,000.
2. Why Doesn't Binance Display Two Separate Lines?
The cost-price line is designed to help you understand the average purchase price of your position.
It is not designed to track every individual purchase on the chart.
This means that whenever you purchase additional coins, the average cost may change depending on:
Your previous purchase price.
The price of your latest purchase.
The quantity purchased.
The total amount of cryptocurrency acquired.
If you buy additional coins at a lower price, your average cost generally decreases.
If you buy additional coins at a higher price, your average cost generally increases.
3. An Example of How the Cost-Price Line Changes
Consider the following example:
First purchase
Quantity: 1 BTC
Purchase price: $100,000
Total investment: $100,000
Second purchase
Quantity: 1 BTC
Purchase price: $80,000
Total investment: $80,000
Third purchase
Quantity: 2 BTC
Purchase price: $70,000
Total investment: $140,000
After completing all three purchases:
Total investment: $320,000.
Total quantity: 4 BTC.
To calculate your average cost price, divide the total investment of $320,000 by the total quantity of 4 BTC.
Your new average cost price becomes $80,000 per BTC.
Binance will show one average cost-price line at $80,000 rather than three separate lines representing the three purchases.
4. How Can You See the Cost Price of Each Purchase?
If you want to know exactly how much you paid for each purchase, you need to check your individual trading records.
You can do this through Binance Trade History or Trade Analysis.
These records allow you to review:
The date and time of each purchase.
The quantity of coins purchased.
The execution price of each order.
Your completed buy and sell transactions.
This is particularly useful when you use a strategy such as Dollar-Cost Averaging (DCA), where you purchase the same cryptocurrency at different prices over time.
5. Important Things to Understand About Binance's Cost-Price Line
There are a few limitations to keep in mind:
It is an average, not an individual purchase marker. You should not expect a new line every time you buy more coins.
It can change after additional purchases. Your new purchase can move the average cost-price line up or down.
The selected chart period matters. Changing the date range can affect the trades included in the calculation.
It is not a complete transaction history. You need Trade History or Trade Analysis to examine individual transactions.
It is a reference tool. The average cost-price line should not automatically be treated as the exact cost basis of every coin you currently hold.
Binance displays one cost-price line because it calculates the average acquisition price of your cryptocurrency rather than showing a separate line for every purchase.
Although this makes it easier to monitor your overall average entry price, it can make it difficult to identify the performance of individual purchases directly from the chart.
If you want to track every purchase separately, use Binance Trade History or Trade Analysis.
Remember, one cost-price line does not mean Binance has forgotten your previous purchase. It simply combines the relevant acquisition data into one average cost-price reference.