Many people would make comments like i bought bitcoin at 6k, and then at 15k, then bought some more at 8k etc. I notice many people would mention this. First off, if someone was not aware of bitcoin and how it works, wouldn't most people assuming the people who say this are buying at least 1 btc each everytime they say i bought btc at 6k, then 15k and then 8k etc? Because the thing is someone could buy btc at 15k price but only bought like 500 dollars worth.
So do people who say they bought btc at so many different prices, i guess it really doesn't mean that much if they buy very little right? I mean you could even say i bought btc at 15k buy you bought maybe 100 dollars or even 10 dollars of it. So in essence, am i correct with this statement or not? Because serious how many people have the extra money to buy 1 btc even now? Most people don't even 10k in their bank account etc.
This is why you should take the dollar cost average. If you bought 1 btc at $100 and 0.5 btc at $2000. You would've paid a total of $1100 for 1.5 btc and so would paid an average of $733 per btc. Thus it's better to say I've bought 1.5 btc at an average price of $733/btc.