Stop Worrying About Lowering your Average Buy-in.

The idea of lowering your average buy-in is a completely emotionally charged mentality. When the price of something drops, you still need to do the exact same evaluation of it. Is it still going to go up in your mind? What's your target price? Why? If you can't answer those, then you're probably making an emotional decision to try and "make up ground." You should be doing a completely new, independent look at the price point. Treat this new x amount of money you want to invest as completely independent from the old money you invested. They literally have no correlation to one another. One does not save the other. There's no changing investment decisions you made in the past. Any new decision should be based on merit alone.

Okay, cool. You still think it's going to go up in price. What's just as important, and more often neglected: you still have to compare it to everything else to see if it's still a good investment idea compared to everything else. Strongly consider your alternatives. It doesn't matter at all if you make or lose money on a certain entity. All you should look at is how it'll effect your overall gains or losses of your portfolio when making decisions. What I mean is, if you bought in at ETH @ 3000 and now it's 2000, you might be tempted to immediately DCA and lower your average buy-in. Instead, ask yourself, is ETH or BTC going to move more going forward? What about ETH or ADA? What about any other Crypto? Why?

Yes, you might be able to "go positive" on ETH if you lower your average buy-in, but if you think it's more realistic BTC goes up, say, 80% than ETH, then it's better to invest in BTC at that point. It doesn't matter if you stay red in ETH, what matters is you'll make more in total if you were to invest in BTC at that point. Your entire portfolio will be more green if you invest in the Crypto that moves more. You can have a portfolio of 4 green investments and 4 red investments that's vastly more lucrative than one that has 8 green. Not saying you should aim for 4 red crypto obviously… just trying to emphasize that you shouldn't get too attached to "wins" or "losses" on individual crypto. Big picture is more important.

None of this is a pitch for ETH, BTC, or ADA (I chose the top few cryptos in market cap for example), I just see people talking way too much about lowering their average buy-in for something. Instead, continue to analyze the market as a whole and focus on what you think will still give you the best overall % gains going forward.