$1INCH ⚠️ The Hidden Risks of "Buying Cryptocurrencies When Their Price Drops" You may have heard the advice: "Buy when the price drops!"

You may have heard the advice: "Buy when the price drops!" or "Only trust dollar-cost averaging!" While these strategies can be effective, it is crucial to understand the risks involved.

📉 Understanding Loss Recovery

When the value of an asset decreases, the percentage gain required to break even increases disproportionately:

A 10% loss requires an 11% gain to recover.

A 50% loss requires a 100% gain.

A 90% loss requires a 900% gain.

This means that if your investment decreases by 90%, it must multiply by ten to return to its original value.

🧠 The Psychological Trap

As your asset approaches its original purchase price after a significant drop, you might hear:

"Hang on! Real gains are on the way!"

"Don't sell now; this is just the beginning!"

However, think of this: your break-even point could be a great profit opportunity for someone else.

🔍 Not All Drops Are Opportunities

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While buying during market drops can be profitable, it is essential to distinguish between temporary drops and long-term declines. Some assets may not recover due to fundamental issues. For example, coins like 1INCH and ICP have experienced significant drops in their prices and have not yet returned to their previous all-time highs.

✅ Key Points

Dollar-cost averaging with caution: Dollar-cost averaging works best with assets that have solid fundamentals and long-term potential.

Trend assessment: Make sure