I want to share my strategy for averaging the price of crypto assets. Perhaps I'm not the first to do this, but I came to this method on my own through trial and error.
The essence of the method using one of my coins $DOT
Let's say I bought coins at $4, investing 50% of the funds planned for this asset. However, the price continued to fall, and I decided to average it out. I use a step-by-step approach.
How I average the price
1. Purchase:
• I make step purchases, for example, $100 with a difference of $0.1 (for example, at prices $3.9, $3.8, $3.7, etc.).
2. Sale:
• When the rate rises above the purchase price by $0.1, I sell ONLY THAT part which covers the costs. The remaining coins stay with me.
3. Long-term storage:
• The remaining asset I transfer to Earn and wait until the average purchase price equals the current market price.
• After that, I list the accumulated coins for sale and with the proceeds, I place an order to buy at $0.1 below the current price.
Results of the strategy
• If the price rises, the unsold asset starts to bring profit on the difference between the average rate and the selling price.
• If the price falls, I continue to lower the average rate and accumulate even more coins.
Thus, I am not dependent on sharp market movements, but gradually improve my position while maintaining flexibility.
At the moment, I can afford to execute trading operations with a difference of not $0.1 but 10% of the purchase price.
Always DYOR!!!
Wishing everyone a great mood and profitable trades;)
