Right now everyone keeps on talking about the dip and that is very important and vital in a moment and time like this, especially at this current period that the Crypto market is having lot of downs. currently it is all about the dip everywhere right now and honestly I sincerely see this period as one of the most important period for every inventor's to actually understand what it takes to endure such moment, most especially for those who are new to the initiative
What is the "buy the dip"?
The terms "dip" is not a new word or strange word again to anyone, as it is a period at which their is fall in price of Crypto market, but one major points is how to do act during the dip. To me I sincerely see buying the dip as avenue to buy an asset or stock after it price as declined from a recent high value ,it is also important to know that such asset are bought at a discounted value during a short period of decline in price, knowing fully well that the price will bounce back and you will make your money
Their few things that should be put into consideration during a moment like this
Have full understanding of the risks involved
On most occasion it is very vital to have a full knowledge why the price of an asset as decrease in value,at times it could be due to unfavourable news ,even it might be as a result of high level of inflation or a tweet from Elon Musk too. It is also very important that buying an asset at a cheap rate during the dip doesn't guarantee that a good returns will come later,at times the market can go from dip to dip . So you have to be ready for whatever outcomes.
Make room to stop lose
This is occur in a case that an asset has fallen in terms of value and the best thing for a trader is to cut lose by setting a stop loss. This is a universal risk management initiative that is applied to both stocks and crypto trading, this order type are set to a specific price level in which an existing order can automatically close whenever the candle touches it
Convert to stable coin
One of the best means to save oneself from the dip crises at times and even at a point that your holding is decreasing in value, the best thing to at that moment is to convert into stable coins.
Stable coin are just the best thing to save someone from the dip crises as it price are always up to the Us dollar value and have a high level of fixed price too, to me this is the best thing to save someone from the volatility of the market that happens time time.
If it is a very good timing, moving in and out of stable coin initiative helps alot as it is another way to make investor's grow their portfolio's by larger withdrawal and buy backs too.
Some popular stable coin include; TrueUSD ($TUSD), Dollar ($GUSD), Tether ($USDT) , MakerDAO ( $DAI) and lot more.
Bottom line
One of the steps to being successful in buying the dip is to understand and know how the market works. Therefore, always make room for your own research before making a move to buy or invest on any coins or assets and always try to avoid listening to noise or speculations that comes from people around at times.
Though it might be tempting to buy the dip, but being careful in doing that too is very important and for no reason should anyone be reckless in doing that , cause at times the dip can go from dip to dip ,cause even the veterans in the world of crypto at times struggle to predict when the market will be back too.
Always remember that even at the point of buying the dip, only some certain amount that you can avoid to loose should be used in such period also , just to avoid a story that touches in case the market turns out the other way round.
Don't always jump to buy the dip,have a full knowledge of what you are buying and why you should buy too
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