The invested value displayed on the portfolio screen represents your entire investment in all coins on the CoinSwitch app.
We follow averaging for the valuation of investments. We multiply the total number of coins purchased with the average buy price.
The average buy price is calculated by dividing the total amount deposited by the number of coins purchased.
Let us understand it with the help of an example.
The average buy price for 4 Dogecoins is INR 25, if you deposit 100 INR.
When 2 Dogecoins are sold, the average buy price of those two Dogecoins is deducted from the invested value rather than the actual sale value.
If you sell 2 Dogecoins at the current market value of INR 90, INR 90 is not deducted from your initial investment of INR 100. The amount to be deducted from the Total Invested value is the cost price of 2 Dogecoins, i.e., INR 50 (2 Coins x INR 25) which makes the new invested value INR 100 - INR 50 = INR 50.
Please do not eliminate the sale value from the investment value shown in the transaction history/statement. The profit or loss on the sale is included in this sale value. As a result, adding profit or loss to your invested amount is irrelevant because profit/loss only applies to the present value.
Following this logic, the average buy price right before you sell would give you the cost price of the coins you sold. This value, multiplied by the number of coins sold, must now be deducted from your initial invested value in order to obtain your final invested value following the sale.
If you have any further queries, please feel free to contact us.