Average Down Explanation Needed

[Lighthouze]

Guys, I need to understand the concept of averaging down in crypto, especially when you're at a loss. I hear a few persons talk about it as a strategy they adopted when a coin they've bought drops in price sharply. But it seems to me that more money is being invested in the process. What happens if there's further loss incurred after buying more, do you keep buying or simply stop? I need clarifications