"Strangle the lion"
Curiosities that courses and "gurus" don't tell you when you're a beginner in crypto assets
Let's say you bought a token or cryptocurrency and suddenly it depreciated. What now? You can simply leave the invested money and wait (that is, of course, if you followed the golden rule: never invest what you can't leave idle for a good while).
Practical example: imagine that the Layer suddenly plummeted, and you panic.
Step 1: Take a deep breath and think.
(Except for new cryptos, with no liquidity or not listed) you only really lose when you sell.
No one told me this — I learned it from the market.
What did I do? I bought more, gradually. This strategy is called dollar-cost averaging. You acquire more units of the asset for a lower value, reducing the average entry price and making it easier to recover the investment.
Simplified example:
You bought 10 tokens at 2 dollars each = 20 dollars.
The token dropped to 1 dollar.
You buy another 10 tokens for 10 dollars.
Now, you have 20 tokens for 30 dollars in total, which gives an average price of 1.50 dollars per token.
Result: With the price returning to 1.50, you break even. At 2 dollars, you profit.
This is the market. As Warren Buffett said:
"Money moves from the hands of the impatient to the hands of the patient."
Final tip: never invest the "money for bread and milk". If necessary, seek extra income and invest wisely.
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Here you find sincere and free tips, straight from someone who learned from mistakes — and not from miraculous promises of expensive courses.
