🚨🔷️ The Ultimate Guide to Buying the Dip: A Comprehensive Strategy🔷️🚨
As you may know, altcoins tend to go parabolic about a year after the halving, so it's crucial to buy before the pump. But how do we effectively "buy the dip"? In this post, I'll share a comprehensive strategy to help you navigate the market and make the most of your investments.
The key to buying the dip is answering 2 essential questions:
1. When do we need to buy?
2. How do we need to buy it?
**When to Buy:**
The typical bull run pattern follows this timeline: halving → Correction & Accumulation → ATH. We can divide this period into two stages:
- Stage 1 (Buying): This stage could last months post halving, and our goal is to build up our positions.
- Stage 2 (Fixing): As the market approaches its peak, we begin to secure our profits.
**How to Buy:**
Buying the dip is a complex process, and you shouldn't just invest all your money at once. Instead, use the cost-averaging strategy:
1. Divide your portfolio into smaller parts (e.g., $100, $200, $300, $400 for a $1k portfolio).
2. Buy each time Bitcoin drops by 5-7%, as altcoins react more sharply to these dips.
The overall strategy looks like this:
1. Check if we are in the dip-buying season.
2. Check if the altcoin is still undervalued.
3. Buy according to the following plan:
- BTC drop by 5% = buy for $100
- BTC drop by 10% = buy for $200
- BTC drop by 15% = buy for $300
- BTC drop by 20% = buy for $400
Remember, this is just one perspective and strategy. Always do your own research (DYOR) and never invest more than you can afford to lose. Happy trading, and may the gains be with you!
