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
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