The crypto and stock market are facing turbulent times due to the constant attack of the bear. The market has remained volatile and a bull run looks nowhere on the horizon. The rise of Covid-19’s Omicron variant has created uncertainties all around the world and was visible with the tremors in the financial market.
The average investor is hit with losses, as most gains were wiped out in the January 2022 Bitcoin crash followed by the crypto market crash. Most altcoins are now trading 40% to 60% lower than their all-time highs. Investors who purchased ‘at the top’ and ‘in between’ have their fingers burnt with drastic losses.
But not the Whales. The whales came to feast on a bleeding crypto market in January and took back great values in assets for their portfolios. They were spotted buying the dips and rescuing assets from plummeting further.
However, that’s not the case for an average investor. The average Joe has to balance life with rent, bills, and everyday expenses along with some for a rainy day. The savings then gets divided into safety net such as bank deposits, and also risky assets like cryptos.
The market that was hitting new highs until a few months back has entered the ‘buy the dip’ zone, given the heavy loss of value. If you’re an average investor balancing life with finances, here’s what you need to avoid doing while the market is down.
Don’t Blindly ‘Buy The Dip’
Twitter is now filled with ‘buy the dip’ memes that entice investors to spend the rest of whatever they have. Blindly buying the dips when the market is down could be risky, as the market remains unstable. There could be another dip that could further shrink your portfolio.
YouTube influencers are flexing how much they purchased during the dip giving an illusion you’re missing out on massive wealth. Well, you’re not! Don’t do it. The influencers never really did their research. All they did was take their cameras and recorded them, that’s about it.
Never fall for false hope and be cautious about how you invest your money. The ‘buy the dip’ brigade can wipe away the left of your savings and leave you further damaged.
However, you can buy the dip only if you’re confident that a particular coin is at its best price point noting historic data. Remember to never fall for the whims and fancies of social media in dictating what’s best for you.
