The Truth About "Buying the Dips" Why Do Most People Lose Their Money??
To simplify, here are some points:
The recovery is harder than you think: If the price of a token drops by 10%, it must rise by 11% to reach breakeven.
If it drops by 50%, it must rise by 100% (i.e., double your capital).
If it drops by 90%, it must rise by 900% to return to the starting point.
For this reason, buying every dip (known as dollar-cost averaging) without thinking can be risky. Don’t Trust the Hype:
Influencers say, "Buy the dips!" when prices are crashing.
Then they say, "Hold on tight!" when prices are rising.
But guess what? They often sell when you are about to break even.
Big investors sell to those who buy out of fear.
How to Profit:
Look at the gains from the lowest price, not from the highest price. Do not keep buying unless you have a clear plan. Take profits early – large recoveries like 900% are very rare.
As of June 6, 2025, the cryptocurrency market is experiencing a downturn due to a combination of factors: 1. Widespread liquidations: Approximately $964 million worth of cryptocurrency positions have been liquidated, contributing to a sharp decline in prices. 2. Musk and Trump's feud: The public feud between Elon Musk and former President Donald Trump has raised concerns among investors, leading to a decline in their sentiment in the stock and cryptocurrency markets. 3. Whale sell-offs: Major cryptocurrency holders, often referred to as "whales," have been offloading their assets, increasing selling pressure. 4. Technical weakness and ETF flows: Bitcoin's price has shown technical weakness, and flows into exchange-traded funds have decreased, indicating reduced institutional interest. 5. Options expiration: Over $3.8 billion worth of Bitcoin and Ethereum options are set to expire today, leading to increased volatility as traders adjust their positions. The market is currently experiencing sharp fluctuations. We advise investors to exercise caution and stay informed about ongoing developments.
Here is a quick guide for #CryptoSecurity101 - Essential tips to keep you safe in the world of cryptocurrencies: 🔐 #CryptoSecurity101: The most important tips for your safety 1. Use cold wallets for long-term storage Store large amounts of cryptocurrency offline in hardware wallets (Ledger and Trezor).
Hot wallets (online) are convenient but vulnerable to hacking. 2. Enable two-factor authentication (2FA) Use authentication apps (like Google Authenticator or Authy), not SMS-based two-factor authentication. Always ensure your accounts on trading platforms and wallets are secured with two-factor authentication. 3. Beware of phishing attacks Never click on suspicious links in emails, direct messages, or pop-ups. Always check URLs, especially for trading platforms or wallets. 4. Keep your private keys and seed phrases secure Never share your private key or seed phrases. Write them down and keep them in a safe place away from the internet. 5. Double-check before sending Thoroughly check addresses - cryptocurrency transactions are irreversible. Use **"copy and paste"
Circle Internet Financial, the issuer of the stablecoin USDC, has filed a confidential request for an initial public offering in the United States in January 2024. This move follows the failure of a SPAC deal in 2022, which valued the company at $9 billion. Circle's value in secondary markets has now dropped to around $5 billion, reflecting broader market corrections and investor caution. In preparation for the IPO, Circle is relocating its headquarters to New York City and has applied to move its legal domicile from Ireland to the United States, aiming to align more closely with its primary market. The success of the IPO depends on regulatory approvals and prevailing market conditions.
A trading pair shows the exchange rate between two assets, usually in cryptocurrencies. Example: BTC/USDT means you are trading Bitcoin for Tether. The first asset (BTC) is what you are buying or selling. The second asset (USDT) is what you use for measurement or payment. The importance of this: Trading pairs allow you to know which currencies you can trade directly without needing to convert through another asset.
#Liquidity101 *What is liquidity?* Liquidity refers to the ease of buying or selling an asset without significantly affecting its price. High liquidity means there are many buyers and sellers, making trading easier. *Types of liquidity:* 1. *Market liquidity*: the ability to quickly buy or sell an asset at a fair price. 2. *Funding liquidity*: the ability to obtain cash or credit to meet financial obligations. *Importance of liquidity:* 1. *Tighter bid-ask spreads*: lower trading costs. 2. *Reduced price volatility*: less susceptibility to large price fluctuations. 3. *Increased market efficiency*: improved price discovery and trading opportunities. *How to measure liquidity:* 1. *Trading volume*: higher trading volumes indicate higher liquidity. 2. *Bid-ask spreads*: narrower spreads indicate higher liquidity. 3. *Order book depth*: a larger number of buy and sell orders indicates higher liquidity.