Break-Even Point (BEP)

A term in economics that indicates the point at which total production and operating costs are equal to total revenue.

The break-even point (BEP) is a point that indicates the stage or level at which the total costs incurred during the production of a commodity or service has been matched by revenue obtained from the sale of said commodity or service. In everyday business, this point is more typically described as the amount of money required to balance up production and operating costs, as if assuming that these costs were borrowed from somewhere else and must be paid back.

In crypto, traders use BEP to direct and regulate their trading activities. The concept helps traders better organize their investments using BEP analysis, thus knowing when to engage in aggressive trading and when to observe market trends without participating.