almost everyone thinks that at first. Like, if it drops 10% and then rises 10%, you end up the same. But no.
The stock market and crypto punish the drop. It’s asymmetric:
- Drop 10% = you need to rise 11% to recover
- Drop 20% = you need to rise 25%
- Drop 50% = you need to rise 100% to get back to where you were
That’s why people who lose 80% in a coin need it to rise 400% just to break even. Almost impossible.
That’s why in spot it’s best not to buy everything at once. If you bought at $100 and it drops to $90, and you have another $20 saved and buy lower, your average price drops and you recover faster
The stock market and crypto punish the drop. It’s asymmetric:
- Drop 10% = you need to rise 11% to recover
- Drop 20% = you need to rise 25%
- Drop 50% = you need to rise 100% to get back to where you were
That’s why people who lose 80% in a coin need it to rise 400% just to break even. Almost impossible.
That’s why in spot it’s best not to buy everything at once. If you bought at $100 and it drops to $90, and you have another $20 saved and buy lower, your average price drops and you recover faster