When markets dip, you might often wonder, "Is this a good opportunity?" Despite analyzing charts and drawing trend lines, predicting the perfect entry point is tough. But there’s a practical way to approach buying dips.
How Most People Buy:
Many investors spend time, energy, and money trying to catch the perfect dip, often ending up in a worse position, either in the red or even facing liquidation. One common strategy is to buy every dip, but this only works if you have deep pockets and can wait out the market. However, this rule doesn’t hold up through an entire bull run.
A typical bull market lasts about 20 months, from the lowest point to the peak. During this period, you should focus on two main phases:
1. Buy the dip and take profits along the way.
2. Maximize your gains when the market is in full swing.
Before Buying a Dip, Ask Yourself:
Is this the right time to buy?
Is the asset you’re considering really undervalued?
If the answer to both is "yes," then you're ready to make a move.
For example, I bought Solana during its rise at $19, $38, and $83, eventually selling most of my position at $187. I may have missed some potential profits, but I still made a good return. Profit is profit.
Strategy for Buying the Dip:
One simple and reliable strategy is to buy altcoins when Bitcoin (BTC) retraces. Here’s how it works:
Divide your funds into segments. For example, if you have $10,000 to invest during a dip, you might allocate it in chunks like $1,000, $2,000, $3,000, and $4,000.
Buy whenever BTC drops by 5%. Each time BTC dips 5%, make one purchase. Since altcoins usually drop more when BTC drops, this helps you capture lower prices on altcoins.
Adjust the percentage if necessary. For example, you could wait for a 10% BTC drop and divide your funds into fewer segments.
By spreading your purchases, you’ll likely capture the local bottom and come out ahead in the long run. Keep in mind that sometimes altcoins don’t follow BTC’s dips, in which case you should hold off on buying.
I hope this guide was helpful! If so, feel free to:
Follow for more tips
Like & Repost to encourage more content!
---
This keeps your message clear while making the concept easier to follow!##Write2Earn! #NeiroOnBinance #BinanceTurns7 $BTC