How to Maintain DCA (Dollar-Cost Averaging):
Let’s say you have $500 to invest. As I always recommend, divide your portfolio into 4 to 5 parts.
#DinnerWithTrump Suppose you want to invest in Polkadot (DOT), which is currently priced at $4.50.
Step 1: First Buy
Buy 30 DOT at $4.50:
4.5 × 30 = $135
Now wait for a 7% market drop before making your next move:$ETH
4.5 × 7% = 0.315 → $4.20
Step 2: Second Buy
Buy another 30 DOT at $4.20:
4.2 × 30 = $126
If the market drops another 7%:
4.2 × 7% = 0.294 → $3.90
Step 3: Third Buy
Buy another 30 DOT at $3.90:
3.9 × 30 = $117
Now Let’s Calculate the Average Cost:
(4.5 + 4.2 + 3.9) / 3 = $4.20
So your average cost is $4.20 for 90 DOT. If the market goes back up to $4.20, you can sell all your DOT without any loss.
If the price goes up to $4.40, your return looks like this:
4.4 × 90 = $396
Profit: $396 - ($135 + $126 + $117) = $18
Simple and effective!
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Let me know if you’d like it rewritten in a more casual, professional, or visual style.