Historically, 1 year after the halving, altcoins go parabolic.
The most important thing now is to buy before the pump.
Many say 'buy the dip' but no one explains how.
Not me... Here's a mega-thread on how to buy the dips 🧵👇
➮ Buying the dip
✧ In general, this means buying at the lowest price, but how can anyone predict the lowest price?
✧ The answer is that no one can.
But we can get as close as possible to it by having a strategy...
➮ "Buying the dip" consists of 3 most important questions that will help us get closer to the desired outcome:
- When do we need to buy?
- What do we need to buy?
- How do we need to buy it?
Now let's separately answer each of these questions:
1/➮ When do we need to buy?
✧ The usual pattern of all bull runs is as follows: halving -> 18 months -> ATH
✧ We can divide this entire period into two stages:
Stage 1 - Buying
Stage 2 - Fixing
2/➮ About each stage
✧ Stage 1 - It's a dip buying season, which usually lasts 14 months, and our task is to build up our positions
✧ Stage 2 - This is the stage in which the market is close to its peak, and we begin to secure our profits
3/➮ What do we need to buy?
✧ Each of us wants to make more profit, which is why we should trade undervalued alts
✧ For example while $BTC made 80%, $FET made 6x
✧ So, tokens with a small mc have higher growth potential
4/➮ Now we are gradually forming a strategy and now, before buying any token, ask yourself:
✧ Is it dip buying season now?
✧ Is the alt still undervalued?
By answering, you will be able to understand whether it is worth buying or not
Let's move on to the most important part
5/➮ How do we need to buy it?
✧ Buying the dip is a complex process; you can't just take all your money and buy a token because you risk not actually buying the dip.
✧ That's exactly why we will use the cost-averaging strategy for buying
Let's dive into it more👇
6/➮ The cost-averaging strategy simply means buying with parts making the average buy price as low as possible
✧ Using a $1k portfolio as an example, it would look like this:
First buy - $100
Second buy - $200
Third buy - $300
Fourth buy - $400
You can use any other numbers
7/➮ Finally, decide at what specific moment you will be buying:
✧ The easiest way is to buy each time $BTC drops by 5-7%.
✧ You might think that's not much, but remember, alts react more sharply to drops.
8/➮ So, the overall strategy would look like this:
✧ Checked if we are in dip buying season.
✧ Checked if the alt is still undervalued.
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
9/➮ Conclusion
✧ Remember that this is my perspective and my strategy; yours might differ in numbers or other aspects, as everyone has their own path
✧ Therefore, always DYOR and never invest more than you are prepared to lose
