Cost to dollar averaging: What is it?
•If you are looking to invest in something long term so you have no worries about dips and losses vs gains constantly this may be for you.
•For those who do not have time to trade constantly (buying and selling a stock or cryptocurrency) this is another route.
•Instead of purchasing an investment (stocks/crypto/etc) and letting it sit without purchasing more and watching it fall and see many losses here is another route. . .
Believe in what you are purchasing. . .Do as much research as you can first.
When you make your first purchase or buy in make sure it is at somewhat of a dip and not on a high if possible.
After your first purchase (assuming you have checked charts and know where the next possible dip may be). Take into account there will always be the possibility of a dip no matter what.
If you see the dip and have some extra money to invest in it. . .Do it. Now your average buy in has dropped. You will not need as big of a rise as you would if you had not bought in again.
If it drops again, you have that opportunity yet again. You must believe in the product and it must be a solid product.
•Just because something has a drop doesn't mean it will not come back. . .Look at Bitcoin for an example. Roughly 17-20,000 USD down to 3122 and now we are back at 11,900(ish).
If you bought at 17,000 and held until the 3122 area but purchased more between 3200 and 5000 your average buy in would be much lower.
On the other hand if you just held it you are still at the same average buy in and down just the same.
This is not investment advice to ourchase stocks or crypto just a few tips to think about if you are in the game for the long run!
Invest wisely and Do Your Own Research!
Remember, it is okay to take tips from others but make sure you research what you are buying and think it out for yourself because no one else is in your life position but YOU! Love you all! Have a great day!
