To recover a 20% loss, we require 25% gain in price. Please never forget this, especially the newcomers.

This post is for all the new comers, beginners, freshers to the trading or crypto world. Hope it helps some of us.

For example if you buy a coin at 100 dollars and the price dips by 20% to 80 dollars, to recover losses you need to gain 20 dollars. Gaining 20 dollars from 80, we require 25% price rise. Please take this into consideration forever

What we shall do to minimise losses:

1. Dollar Cost Averaging: It is always advised to buy in parts and average out your investment price.

2. Buy on Dips: Always buy on dips and possibly try to double your portfolio on each dip like this to average your buy price.

For example, if you have 600 worth of USD to invest in total

Buy 50 first, then next 50 on a 5% dip, then 100 on next 5% dip, then 200 on next 5% dip, then 400 on next 5% dip, ( you can change percentage according to the coin you are investing, as each coin has varying volatility )

Such a strategy (just an example) can be adopted which can help you recover your losses way quicker than others as you would directly be averaging from your just previous investment.

Regards