12-07-2021, 12:13 AM
Don't be afraid of averaging down. If you put $100 in a coin at $20, then buy same a
<!-- SC_OFF --><div class="md"><p>Let's say you buy a coin priced at $20 with $100 = you get 5 coins</p> <p>Then it dipped to $10, you put $100 again = get 10 coins.</p> <p>Some of you might think the average is:</p> <p>30 / 2 = $15</p> <h2>Wrong!!</h2> <p>You have 15 coins and $200 investment.</p> <p>200 / 15 = <strong>13.3333</strong></p> <p>You only need the coin to go up by 33.33% for break even point.</p> <p>Of course this is assuming you have high conviction in the coin. Buying the dip also test your conviction.</p> <p>You thought a coin is worth $20, so you bought it. But why didn't you buy it when it dipped to $10?</p> <p>Also note that you shouldn't do this for shitcoin. Unless you really believe in the shitcoin, then by all mean.</p> <p>Not a financial advice</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/petanibulan"> /u/petanibulan </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/ra9k4g/dont_be_afraid_of_averaging_down_if_you_put_100/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/ra9k4g/dont_be_afraid_of_averaging_down_if_you_put_100/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Let's say you buy a coin priced at $20 with $100 = you get 5 coins</p> <p>Then it dipped to $10, you put $100 again = get 10 coins.</p> <p>Some of you might think the average is:</p> <p>30 / 2 = $15</p> <h2>Wrong!!</h2> <p>You have 15 coins and $200 investment.</p> <p>200 / 15 = <strong>13.3333</strong></p> <p>You only need the coin to go up by 33.33% for break even point.</p> <p>Of course this is assuming you have high conviction in the coin. Buying the dip also test your conviction.</p> <p>You thought a coin is worth $20, so you bought it. But why didn't you buy it when it dipped to $10?</p> <p>Also note that you shouldn't do this for shitcoin. Unless you really believe in the shitcoin, then by all mean.</p> <p>Not a financial advice</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/petanibulan"> /u/petanibulan </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/ra9k4g/dont_be_afraid_of_averaging_down_if_you_put_100/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/ra9k4g/dont_be_afraid_of_averaging_down_if_you_put_100/">[comments]</a></span>Kind Regards R