Does it make sense to always buy the dips?

Does it make sense to always buy the dips?

“Buy the dip.”

You hear this all the time in crypto investing. It refers, of course, to buying more bitcoin (or digital assets) when they go down in price: when the price “dips.”

Some people brag about “buying the dip," showing they know better than the crowd. Others “buy the dip” as an investment strategy: they’re getting a bargain.

The problem is, buying the dip is a fallacy.

You can’t buy the dip, because you can't see the total dip until much later.

First, I’ll explain this in a way that will make it simple and obvious to you; then I’ll show you a better way of investing.

You Only Know the Dip in Hindsight

When people talk about “buying the dip,” what they’re really saying is, “I bought when the price was going down.”

Here’s a look at the price of bitcoin from earlier this year. When it dropped to $39,000, El Salvador President Nayib Bukele proudly tweeted that his government had just purchased an additional chunk of bitcoin: that it “bought the dip.”

But the next day, the price of bitcoin dipped further, to $34,500:

Could you “buy the dip” then? No, because the next day, it dipped further still, to $33,500:

Why “buying the dip” is probably not the best economic policy.

We could take any time period, for any cryptocurrency, and show this same principle: you can only see the dip in hindsight, after the price has gone back up.

This assumes, of course, that the price will go back up. There are plenty of investors who “bought the dip” on their favorite token, only to find out it wasn’t a dip, but a ride off a cliff.” - John Hargrave

Profits from free accurate cryptos signals: https://www.predictmag.com/

You are flexible in forex like you can chooses either side but which side will give you profit depends on the accuracy of the market analysis. Majority of us don’t have that knowledge that kept us apart from success in the market. FXOpulence provides more than 400 technical instruments to traders and more than 28 currency pairs with narrow trading spread.

Forex trading can indeed be highly profitable when you have mastered and understood everything correctly. That's why I continue to learn and make the most of all the facilities provided by the broker. By doing all of this, I can trade to the fullest in a real account with Tickmill as my broker.

Forex trading is a significant business with its associated risks. It's advisable to learn befo*****d before venturing into a real account to maximize your results. Freshforex can be recommended as the broker of choice due to its various attractive bonus promotions and excellent features. For instance, I received a unique promo code, "onlyfresh0923," which can be redeemed via support for a 101% deposit bonus and cashback

Forex is indeed a highly risky business, but it is equally matched with the potential for significant profits. That's why I always pay attention to managing and continuously developing my skills so that I can maximize my forex trading experience with Tickmill.