So I've been involved in cryptocurrencies for several years and I have made money and I have lost money, but all that has taught me a pretty useful method to leveraging my money.
Let's say you start with a $100 investment in BTC. Well, the price is going to up or go down, which will change the dollar value of your investment. You always want the minimum value of your investment to be $100, so if the value goes down to, let's say to $90, you would add $10.00 and mark down somewhere that you have invested $100 + $10 = $110
Let say you do that. You now have spent $110 in BTC, so, the Break Even value of your Investment will be when the dollar value reaches $110, which by the way, will now be at a LOWER BTC price than what you bought the $100 at. The key is you are buying the dip, so you are constantly adding lower priced BTC to your portfolio as the BTC price declines.
You track your initial investment, which can be $100, or some other value, and, how much you have added to maintain that minimum value, in this example, $10. You don't sell anything till the value exceeds your Base + Additions. In this example, a dollar value of $121 would mean a 10% profit. I like to post mine up for sale at 150% to 200% of the current amount of money invested and leave it just in case I miss a spike or am offline for a while. So, I would determine what the price of BTC would be when my dollar value would reach $165 or $220 and post a sale and let it ride till I decide to modify my investment.
Using this strategy has taught me to never care what the price of a coin is because it's either going to go up and make me money or it's going to go down and enlarge my portfolio for bigger gains later.
Hope this strategy will help you minimize your losses by providing a formula to follow to keep you from selling at a loss unless life forces you to.
This reminds me of a roulette strategy I read about years ago. Bet on black and if you lose, double your bet until you win, so you're always winning.
This can be a good strategy, but in a bear market you have to be careful because you can quickly run out of funds if the price keeps going down.
I prefer to DCA consistently on my few chosen tokens and grow my holdings in that way. But everyone has their own strategy.
I would love to see like a report of you using this strategy and the actual returns it brings you though, it could be something I start doing in the future!
The buckle down betting always involved doubling or even tripling your next wager in the hopes of recovery. Been there, done that, too, with satoshi betting sites. It's also a very fast way to lose money. The major difference is, there is no 'losing' with this approach. You don't lose your investment by buying more. You only strengthen your position and lower your BEP (Break Even Point).
In order to gift myself this Christmas, I cashed out my portfolios at 48% of value. I really needed a new computer, though. My old laptop wasn't pulling it's weight anymore and technology just gets harder and harder for older systems to handle. To Compensate for this, I am presetting my investments at a Base + Additions of $100 + $52 as a 'current position'. I use a tithe investment seed, so 10% of my wages goes into cypto. Since Christmas, I have bought $100 in BTC (Current: $136), SHIB ($109), ETH ($107), DOGE ($102) and POLY($100). Before Christmas, I was really spread too thin, which didn't allow me to handle the additions very well. I am limiting myself to 10 bags, as we call them, this year. Well, that's a quick snapshot and hope to report more later in a new blog.
This is a very good strategy. You want to me to be investing and not trading. This is though you know especially (it's not an excuse) the economy is not what anyone can trust to get any better.
Moreover, bitcoin is a no for small investors or traders like myself