I lost $5000 while doing spot trading—in a coin $LAYER — isn’t spot trading less risky?? I have #layer in my wallet but I don’t know when it will recover and hit ATH and I get a profit—can you please tell me? what has actually led to this loss—it is too much and it is unbearable—when will LAYER go up??
That is the thing most of the traders will ask after making such significant losses and ask others: why did I lose that much money??
The thing is that you put all your eggs all at once in a single basket—that means putting your entire portfolio at a fixed price and then waiting for it to go up and make a profit. In fact, you should have done DCA—the strategy that can save you from being a victim of sudden falls...
Dollar-Cost Averaging ( #DCA ) means breaking your total amount into smaller chunks and buying step by step instead of all at once.
For example, if you had $5,000 to invest in $LAYER, instead of buying at $1.60 fully, you could have done $1,000 at $1.60, another $1,000 if it fell to $1.20, again at $0.95, and so on.
That way your average buying price gets lower with each drop, and you don't have to wait for the all-time high to make a profit—just for your average to be crossed.
It’s slow but protects you from one-shot losses and helps you stay calm during dumps.