Crypto average cost
The previous average cost calculation only took into account your buy orders. This new calculation takes into account both your buy and sell orders.
Average cost is the notional value of crypto assets you’ve purchased or got rewarded on Robinhood divided by the total volume of crypto assets you’ve purchased or got rewarded on Robinhood. It changes based on sell orders because crypto sold is excluded from this number. It also takes into account the cost basis of the tax lots bought or sold.
Average cost = Notional value of crypto purchased and rewarded ÷ total quantity of crypto purchased and rewarded
It includes:
It excludes:
Your average cost is a reference for your estimated unrealized gains and losses. It shouldn’t be used for tax purposes.
Cost basis Typically, cost basis is the amount that you paid when buying an asset or the value determined at the time of receipt or transaction. Received crypto will use a cost basis at fair market value calculated at the time of receipt or redemption for tax purposes.
Fair market value (FMV) Fair market value is the price at which an asset would change hands between a willing buyer and a willing seller.
Total return Refers to how much your holdings have gained or lost since the day they were added to your portfolio. It’s calculated as the difference between the current value of your crypto holdings and their average cost.
Total return = Quantity held x (mid price - average cost)
Today’s return Today’s return measures the return that your holdings produce over a 24-hour cycle between 12:01 AM-12 AM. The starting value is set using your quantity held and the mid price at 12:00 AM the evening before.
Today’s return = Quantity held at 12 AM x (mid price - opening price) + quantity purchased or rewarded today x (mid price - average cost of crypto purchased or rewarded today)
The average cost is used as a reference point for estimating unrealized gains, and isn’t intended for determining your realized gain or loss for tax reporting purposes. If the average cost calculation changes, you’ll see a tooltip explaining the change. You can also tap on the average cost on the crypto detail pages to see how average cost is defined.
The previous calculation only took into account your buy orders. This new calculation takes into account both your buy and sell orders.
No. Don't use these average cost calculations to determine your realized gains or losses for tax reporting purposes because they may not match your tax forms, if applicable.