How Do You Feel About Buying The Dip?
Do you follow any strategy when you buy cryptocurrency? You often hear about buying the dip. Every time the crypto price goes down, you buy the dip and think you will make a profit when the price rises. You can do well buying the dip, but which crypto you are buying and when you are buying the dip, that is most important.
Bitcoin is doing better to hold its position. BTC's dominance is increasing. How about altcoins? Altcoins' dominance is not going up. BTC gets more attraction and that is considered the safest crypto asset. Investors tend to move to risk-off assets when the market dynamics change and move to the downtrend.
Most altcoins' prices kept falling over time so far except for some altcoins. Some altcoin prices rallied and that's an exception. The altcoin dominance is down. When you buy the dip, the altcoin price goes up and then the price falls further. Again you buy the dip.
At some point, you think you could do better if you did not buy the dip before because the price falls consistently. You could have bought more coins later with the same amount of fiat currency. Are you making some mistakes or is there something you do not understand yet?
DCA (Dollar Cost Averaging) is a great strategy that many people follow. People who do DCA on Bitcoin are doing better so far. On the flip side, people who did DCA on altcoins may not see their portfolio green yet. Some people may not take it anymore when they see the price keeps going down and end up selling their crypto.
It is not all about buying the dip, which crypto you are buying, and how long you plan to hold it are very important. Some people may throw some money in altcoins and they do not care if it goes to zero. You may not think like them. Investors think seriously about their crypto investments and how much risk they are taking.
People usually get scared when they see how much they lose after the crypto price drops. You will not lose anything until you sell. That's why, it is also important how long you will hold crypto assets. BTC gets more attention, investors will pay attention to the altcoins at some point. Then we will see altcoins' dominance going up.
People's decision-making and mindset are different. You decide how much you will allocate to the crypto assets. Some people are more serious about protecting themselves and they prioritize investing in crypto assets lowering the risk. It is up to you how you approach and make your move in crypto.
About Me
I'm a content creator and passionate learner. I write about finance, cryptocurrency, and lifestyle. Stay tuned to know what's going on in crypto.
Follow me on Twitter and
Watch my videos: 3Speak, DTube, and YouTube.
Posted Using InLeo Alpha
I tend to buy based on prices. I split my buys in chunks though in case the price goes lower, but I also think DCA is also a valid strategy is people don't want to rely on price. It all averages out over time.
That's good. I think everyone follows their system to buy and take entry. Then they would not do something out of FOMO or panic.