$🚨 TIP OF THE DAY: AVERAGE PRICE 🚨
Not even the greatest specialist in technical analysis can predict the bottom in a market downtrend. Faced with this impossible mission, how can we maximize profits and get closer to the bottom in a downtrend?
Today's tip is: practice dollar-cost averaging, also known as DCA. Let's suppose you bought the coin $SUI a for $3.10. You bought 10 units. After a while, the price of the coin dropped to $2.90. At that moment, you bought 15 units. Then, the coin fell to $2.80 and showed signs of reversal. You then bought 25 units at $2.80. Your average price for this operation will be (10x3.10 + 15x2.90 + 25x2.80)/(10+15+25) = $2.89. If you sell for $3.10, which was the price of the first purchase, you will have a profit of just over 7%. That is, you do not need to wait for it to reach $3.32 to make a 7% profit.
This tip only works well with good crypto projects, like $ETH $SOL e $XRP - doing DCA with a shitcoin may only increase your losses.
So, has the price of an asset you are allocated to dropped? Don't panic, do DCA, as it reduces the impact of market volatility.
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