Answer to a client (with example)
Given the current crypto market conditions, long-term investing is not about buying more at all costs, but about preserving buying power and waiting for a better margin of safety.
Example:
Suppose you have USD 1,000 of disposable cash each month.
Your current portfolio consists of:
• BTC: 70% allocation – average price: 90,800
• BNB: 30% allocation – average price: 880
At current price levels, the portfolio is at a loss or near break-even. Continuing to DCA mechanically does not improve the cost basis, it only increases risk exposure.
➡️ A more appropriate approach at this stage:
• Keep most of the USD 1,000 in stablecoins
• Use only around 5% (~USD 50) to make a small test purchase
• Avoid trying to predict the bottom or averaging down prematurely
When the market offers a clearer opportunity or deeper correction, you still have capital available to act decisively.
Long-term investing is not about constant action.
Having capital when real opportunities appear is the real advantage.
