Staking in cryptocurrencies means buying more of the cryptocurrency you own when its price drops, with the goal of reducing your average cost of purchasing that currency, and increasing your profits if the price rises later.
1. When you are convinced of the currency:
If you believe that the currency has a strong project and a promising future.
2. When the price drops significantly:
A boost is appropriate if the price drops significantly but the underlying project has not changed (there is no negative news affecting the future of the coin).
3. If you are planning for long-term investment:
The boost is suitable for investors who plan to hold the currency for a period of time.
4. When there is strong price support:
If you notice that the currency is at strong support levels, this may be a good time to consolidate.
5. When you have enough liquidity:
You should not leverage with money you cannot afford to lose, because the market may fall further.
When should you avoid boosting?
1. When there are problems in the project:
If bad news comes out that radically affects the future of the currency.
2. In case of a continuous bear market:
If the entire market is in a downtrend, the price may drop further.
Practical examples of reinforcement:
If you buy a coin at $100 and it drops to $70 and you are convinced about its future, you can buy more to make your average purchase cost lower.
Use the DCA (Regular Consolidation) strategy, i.e. allocate a specific amount to boost the currency at regular intervals instead of putting all the money in at once. For example: with each decline, I increase by 15-25%.