Do. You know what the average cost is ?
If you know it, you will be smart enough to reduce risk and increase profit.
I will give you simple example:
If you have 100 dollars and you want to buy a coin which its price is 50 USD.
So 100/50 = 2 coins
Assume the price of this coon goes down to 40, then you will think you lost because price went down to 40. This is right l, however, the smart trader should buy more at this price .. so assume now you invest another 100 dollars to buy the coin again with the new price of 40 USD.
So 100/40= 2.5 coins
Now how you calculate your new average cost ?
Simply .. you add all dollars spent : 100 + 100 = 200 dollars
Add your quantity of coins : 2 + 2.5 = 4.5 coins
Divide dollars/quantity = Price
200/4.5 = 44.4 USD
What we did now ?
Instead of waiting to the price to go back to 50 USD to return our capital .. we invested more in lower price and forced the new average price to be 44 rather than waiting to reach to 50!
I hope this is clear .. and I hope that it will help all of you ❤️
Good luck 🌹