Price Averaging
Nominex Exchange
💸 Any investor, regardless of his experience, knowledge, qualifications, is at great risk if he immediately invests a large amount of money in one instrument. When investing a large amount of funds in a particular coin, there is a possibility that the price may be corrected and after that, it will be difficult to change the situation: it will be necessary to wait for the cryptocurrency rate to rise, or sell it at a loss.
Buying an asset in equal parts (for example, once every two weeks or once a month) can neutralize these risks.
⚖️ This strategy is called "price averaging". If you want to invest your funds in an asset, you can divide the entire amount into several parts and invest them gradually.
❗️ Remember, there is no guarantee with 100% probability of predicting how the price of a token or stock will behave in the future. But if you generally follow the averaging strategy, you will always have a deferred amount to buy a coin in the event of a sharp correction in its price. And any market fluctuations will not be so painful for you.
This post is published for educational purposes and does not constitute investment advice.
Have you heard about this strategy? Stick to it? Or is the “all in” strategy closer to you?