DCA In: Let’s say you have $1,000 to invest. Start with $500. If the price drops 15%, put in another $125. Keep doing this to lower your average price.
DCA Out: Don’t wait for the absolute top. Take profits little by little as the price goes up. Most people don’t catch the top anyway, so focus on locking in gains.
You buy $500 worth of XRP at $3.17, which gives you 157.32 XRP. If the price drops, you add $125. To calculate your average entry price, divide the total amount invested by the total quantity of XRP you own:
Initial Purchase: $500 / 157.32 XRP = $3.17 (average price)
Second Purchase: If you buy another $125 worth of XRP at a lower price (e.g., $2.70), you’ll get 46.30 XRP more.
New Total Investment: $625
Total XRP: 203.62 XRP
New Average Price: $625 / 203.62 XRP = $3.07
This way, your average entry price drops, giving you a better position as the market recovers.