If you bought most of your Bitcoin in 2021, this is the greatest opportunity to AVERAGE DOWN your purchase price. If you believe in Bitcoin, do NOT stop buying.

Here's an example:

Let's say you managed to buy 1 BTC last year at an average price of $40k. Now you have to wait for the price to get back to $40k to "break even".

Here are some scenarios:

If you buy 1 BTC at $19k, you lower your average purchase price to $29k.

If you buy 0.25 BTC at $19k, you lower your average purchase price to $35k.

If you buy 0.10 BTC at $19k, you lower your average purchase price to $38k.

So as you can see, if you buy again, even if it's just a little, it will help a lot to lower down your cost basis.

Now, if the price keeps dropping even further, things get really interesting.

For example, let's say the price crashes in a black swan event down to $8k.

You have 2 choices:

1) Just HODL and hope that Bitcoin one day goes back to $40k so that you can break even.

2) Buy a lot more, for example: You buy 2 additional BTC and lower your average purchase price to $18k!!! Now if Bitcoin goes back up to $18k you are breaking even.

This, my friends, is the power of averaging down.

Keep stacking.

Submitted July 03, 2022 at 10:13PM by Iguana_The_Wise https://ift.tt/GN5Lv8k