Don’t be afraid of averaging down. If you put $100 in a coin at $20, then buy same amount again at $10, the average IS NOT $15 !!!!

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Let’s say you buy a coin priced at $20 with $100 = you get 5 coins

Then it dipped to $10, you put $100 again = get 10 coins.

Some of you might think the average is:

30 / 2 = $15

Wrong!!

You have 15 coins and $200 investment.

200 / 15 = 13.3333

You only need the coin to go up by 33.33% for break even point.

Of course this is assuming you have high conviction in the coin. Buying the dip also test your conviction.

You thought a coin is worth $20, so you bought it. But why didn’t you buy it when it dipped to $10?

Also note that you shouldn’t do this for shitcoin. Unless you really believe in the shitcoin, then by all mean.

Not a financial advice

submitted by /u/petanibulan
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