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Position sizer
The question a beginner should ask isn't "what to buy" — it's "how much." Enter three numbers, back out the cap for this one buy from how much you can afford to lose, and the tool splits it into batches for you.
How it's worked out: cap = total assets × (drawdown you can stomach %) ÷ (worst-case crypto crash %). So even if it really fell that far, your total assets would only be hurt down to the line you said you could live with. Crypto can lose half its value or worse, so treat the money you put in as money you could lose entirely without it changing your life. This tool is a pure math demo; it predicts no real returns on any asset and is not investment advice.
How to use this number
The calculator gives you a cap, not a quota. It means "invest at most this much," not "you must invest this much." If you're unsure, starting at half the cap or even less is perfectly fine — you can always add to a position, but adding wrong and then wanting to trim usually means sitting through a painful drop first.
Why assume a "worst-case crash" first? Because crypto drawdowns run far deeper than most newcomers picture. After topping out near $69,000 in November 2021, bitcoin fell to roughly $15,500 by November 2022 — a drop of about 77% (public price data). Small-cap coins fell harder, and some never came back. Put the worst case into the math, and the cap you get can survive a real bear market.
Why buy in batches
Once you have the cap, don't buy the whole thing at once. Nobody can buy the exact bottom — today looks like the floor, tomorrow can be lower. Split the money into a few buys, spaced by time or by how far the price has fallen; it won't necessarily get you a cheaper average, but it leaves you with ammunition and breathing room when prices drop. For how to split it, read DCA or a single lump sum.
What this tool can't do for you
It won't tell you what to buy, and it won't predict the price — nobody can. All it does is take the one thing you should think through most clearly, yet most easily lose your head over in a hot market — "how much can I actually afford to lose" — and turn it into a concrete number. The rest of the judgment is still yours.
Once it's worked out, you'll want an account that lets you buy in batches and set price alerts. I use Binance myself; register with code BN1918 for 20% off trading fees.
See how to open an account →Disclosure: if you register through a link on this site, Dingtouma may receive a referral fee, and you never pay a cent more for it. Crypto is risky; this is education, not investment advice.
Risk warning: crypto prices are extremely volatile and you can lose your entire principal. Everything on this site is investor education and personal experience, not investment advice, and is not responsible for any investment outcome. Past performance does not indicate future returns.
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