It is well known that the crypto market is very volatile. In seconds, millions can be made and lost. Recently, the crypto market is in a state of distortion – almost all the currencies are in their downtimes. As a result, many people have lost a lot of money to the bearish nature of the market. How can you now make the best use of this current time to make a profit?
During dip periods, most people prefer to sell their currencies in order not to make a lot of losses as the prices of the currencies start to go down. This is a pretty good strategy; however, it is a distress sale. Traders would use this opportunity to buy at ridiculous amounts coins that are worth much more. However, many people are concerned about what they stand to lose at the time of the dip and they would sell their coins in distress – which they might regret later.
Before selling your coins when the market is going down; it would be best if you research and see that there whether selling your coins will be the most beneficial in the long run. Many people have sold and are still regretting that they sold their currencies because, after the mild dip, there came a huge pump.
Selling coins in distress is not the only technical thing that comes when there is a dip in the market; there is also what is termed “buying of the dip”. Just as the name implies buying the dip means that buying coins as at the time their prices experience a short-term decline. Buying the dip is a long-term kind of investment as the investor will hope for a rise in the asset.
Since buying the dip has made money for some people after the dip pumps again, many people rush into the market and buy dips of coins without the necessary knowledge of buying the dip, and this later results in a loss. Hence, if you are planning to buy dips in this bearish period, the following are things you should take do when buying.
Slow purchase as the price declines
When people buy the dip, they make the mistake of putting in all the money they want to use to buy the dip at once, and later the coin’s price might decline more, and they would lose some of their money. If you want to buy the dip, you shouldn’t put all your money in it at once; it should be incremental.
In the crypto market, it is impossible to be so sure of the result of a dip. A decline in the price of a coin doesn’t mean it wouldn’t decline again. When investing during the bear period, you have to be smart. You should buy the coin as the price further reduces; that way your losses wouldn’t be as much if you put all your money immediately during the first dip.
Set buy orders at lower prices
This is another very good strategy when you are trying to buy the dip. As a trader, you can give your trading bot the order to buy coins at their lower prices. If you do not detect that the price of a coin would go down, the order will make it buy the coin the lower price you have set it to be. For more information on trading bots, visit Yuan Pay Group app.
This is also very important when you want to buy the dip; it is another strategy that has paid off for many people. Before you buy the dip, you should wait until the price of the coin has settled. This way, you will be confident that even if you are going to lose, it will be infinitesimal. Also, it would be best if you even allow the coins to show signs of recovery before you buy the dip.
Buying the dip can be very tricky, and based on the volatility of the market; you might even lose money to the dip. However, if you are patient, and you follow the listed things to do when you want to buy the dip, you would see all the red flags that would prevent you from running into losses.