But all you hear is “buy the dip” and none of it is practical. Here is the first detailed guide on how to buy the dip.
1️⃣➮ Buying on dips means buying at the lowest possible price
The question immediately arises: how and who could have predicted this?
The answer is no one can.
But we can get as close as possible by having the right strategy👇
2️⃣➮ "Buying on dips" involves 3 elements that must be followed for maximum success:
- When to buy
- Buy something
- How to buy
If we have answers to these questions, we will be successful in buying when prices fall.
Let's explore each stage:
3️⃣ When to Buy
To understand when to buy, consider a typical bull cycle pattern.
It looks like this: Halving -> 18 months -> ATH
This entire period can be divided into two phases: growth and peak.
Now, let's analyze the stages in more detail.
4️⃣ Price Increase Phases
Growth: The phase where you need to accumulate your positions and build your portfolio, which lasts about ~14 months.
Peak: The period where you need to actively take profits from your positions and move them into stable assets lasts about ~4 months.
5️⃣ Bullish Cycle Psychology
An additional method that will help you navigate is the Wall Street Cheat Sheet
It clearly shows its bullish cycle chart and sentiment
Assess the situation in the crypto community and estimate what stage you are in
6️⃣ What to Buy?
Everyone wants to make maximum profit, 100x and more, but the important thing is not to lose everything.
You can make 50%-100% profit from $BTC or $ETH
But the real profits today come from altcoins (AI, DePin, RWA, AI Agents, Memecoins).
7️⃣➮ Build a portfolio with long term trades like $BTC, $ETH, $SOL
As well as short term on-chain transactions like low-caps/memes
This way, you balance the risk % of your portfolio through diversification.
Also remember to keep a % of your assets in stable
8️⃣➮ Now that we have discussed when to buy and what to buy in general
But the key aspect of “buying the dip” is executing the purchase correctly.
To do this, we will use the cost averaging strategy.
Let me explain further.
9️⃣➮ The simple cost averaging strategy is to buy in parts, reducing the average purchase price
For example, with a $1k portfolio, it would look like this:
- First purchase $100
- 2nd purchase $200
- 3rd purchase $300
- 4th purchase $400
But we also need to know when exactly to buy in such parts:
1️⃣1️⃣➮ Generally, it is best to use $BTC as the base price
So as soon as $BTC drops 5-7% we buy more
Also remember that altcoins/memes drop 10%-20% during this time
It is important to understand that some altcoins do not react to the price movements of $BTC
1️⃣2️⃣➮ Let's summarize our cost averaging strategy, and it would look like this:
$BTC drops 5% -> first purchase $100 -> $BTC drops another 5% -> second purchase $200, etc.
This way we will reduce the average purchase price and get closer to buying on dips.
1️⃣3️⃣➮ Knowing when to buy, what to buy, and how to buy will definitely lead you to buying on dips.
But to be successful in taking profits and building your portfolio, you also need a good risk management strategy.
DYOR! #Write2Win #Write&Earn
