Real wealth is created during correction phases, like now.
But no one explains how to profit from it.
Everyone just says "buy the dip"
No one shares HOW... But not me.
Here's your playbook to make the most out of the dips.
➮ We are currently in a period of consolidation, and our main goal is to survive
Those who do this will emerge as winners from this bull run
The key to this is actively buying the dip and positioning urself correctly
Here is my ultimate playbook on how to do this:
1/➮ No higher-risk plays for now
During such corrections, taking significant risks can lead to losing your portfolio
So, limit this to no more than 3% of your portfolio
It's better to focus on low/mid risk plays
2/➮ Stables
Keep 30% to 60% of your portfolio in stablecoins
They are necessary to reduce volatility
Also, it will allow you to buy the dip at the right moment.
3/➮ No money to buy the dip - Get a Web3 job
If you don't have the funds to actively build positions, find a Web3 job
These periods last 4-6 months, giving you enough time to build a minimal portfolio
Especially with many job opportunities available now
4/➮ Upgrade ur skills while the market is boring
This is what separates winners from losers
Those who research and actively learn new things while the market is boring will emerge as winners in this cycle
Here are some skills:
- Coding
- Video Editing
- Copywriting
5/➮ About how to buy the dip
✧ This means buying at the lowest price, but there is a question: how can anyone predict the lowest price?
✧ The answer is simple - no one can
✧ But we can get as close as possible to it with a strategy:
6/➮ To get as close as possible to "buy the dip," you need to know the answer to 3 questions
✧ When do we need to buy?
✧ What do we need to buy?
✧ How do we need to buy it?
Let's dive in👇
7/➮ When do we need to buy?
✧ The usual pattern of all bull runs is: halving -> 18 months -> ATH
✧ We can divide this entire period into:
Stage 1 - Buying
Stage 2 - Fixing
Here is a rough chart with these stages
8/➮ Buying & Fixing
✧ Stage 1- Dip buying season, which usually lasts 14 months, and our task is to accumulate our positions
✧ Stage 2 - The market is close to its peak, and we begin to secure our profits
9/➮ What do we need to buy?
To make the biggest profit we need to find undervalued alts
But also remember about risks:
High mc = lower risk
Low-mid mc = higher risk
Choose according to your risk management and portfolio
10/➮ Undervalued alts are often in the price discovery stage
They can be either high-caps or low-caps
You can also add positions in $BTC/$ETH to reduce the volatility of your portfolio
11/➮ How to buy?
✧ Buying the dip is a complex process
✧ We can't just take all the money and buy a token cause you risk not actually buying the dip(the price may go lower)
✧ That's exactly why we will use the cost-averaging strategy for buying
Let me explain👇
12/➮ The cost-averaging strategy simply means buying with parts making the average buy price as low as possible
✧ $1k portfolio example:
1st buy - $100
2nd buy - $200
3rd buy - $300
4th buy - $400
Feel free to change the numbers
13/➮ But when exactly to buy?
The easiest way is to buy each time $BTC drops by 5-7%, remember that alts are this time drop by 10-15%
Once again, remember that u're free to change % as you want according to your strategy
14/➮ Let's sum up everything:
Checked if we are in dip buying season - > Checked if the alt is still undervalued
Then use cost-averaging strategy:
BTC -5% = buy for $100
BTC -5% = buy for $200
BTC -5% = buy for $300
BTC -5% = buy for $400
Now you actually buying the dip
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