📉 Bought at $1… then the price dropped to $0.05

The person entered the market first with $5 at $1.
At the time, it looked like a good entry, but the market kept falling.
When the price dropped to $0.05, instead of cutting losses, he decided to add more:
Bought $10 at $0.05
Then added another $20 at $0.05
📊 Final result:
Total investment = $35
Total units = 605 units
Average entry price ≈ $0.058
💡 Key idea:
Even though the first entry was at a very high price ($1),
most of the buying happened at a much lower price ($0.05).
👉 That’s why the final average moved close to the lower price, not the higher one.
⚠️ But the important point:
Averaging down is not always a solution…
It works if the asset recovers,
but it can also increase losses if the price keeps falling.