What is Breakeven point ?
Today we’re going to discuss about What is Breakeven point ?, to Better understand this we are taking out recent Trade of $DYDX ( posted in our COMMUNITY ) as an Example.
you can better understand by the image above.
What is Breakeven Point?
In financial terms, the breakeven point is the point where total cost and total revenues are equal. That means there is no profit or loss at this point and all the expenses which must have been paid are covered. To be more precise, the breakeven point refers to the sales amount, which is required to cover the total cost (fixed and variable costs).
In the blockchain space, cryptocurrency traders can use breakeven point analysis to determine their existing state of profits and losses and adjust their trading strategies accordingly.
Breakeven Point calculations are also employed by miners to determine whether their mining operations are profitable or not. In this case, it takes into account the costs of electricity, mining hardware, and also the current price of the cryptocurrency that is being mined.
