If you invest $100 in a cryptocurrency like Pepe and its value drops to $10, your initial investment will actually be worth $10 at that point. This means you have lost 90% of the value of your investment.
However, if the coin's value later rises to $200, your investment will not automatically be worth $100 again. Unfortunately, the value of your investment will still be calculated based on the new $200 value, but given that you own part of the coin .
To calculate the value of your investment after a surge, you need to determine the percentage of the coin you own. Let's say you originally had 1 Pepe coin and after its value drops you still have 1 coin. When the value rises to $200, your 1 coin will be worth $200 instead of $100.
But if you sold your coins when they were worth $10 and then bought them back when they were worth $200, you would make a profit. You would buy back the shares at a lower price and sell them at a higher price, profiting from the difference.
