INTRODUCTION
The current trend happening with Bitcoin dipping to a five-month low is seen by investors as an opportunity to buy them. This is a result of cryptocurrency being adopted as a significant currency according to expert financial advisors and heads of financial institutions.
A WINDOW OF OPPORTUNITY
Most investors are hearing the call “buy the dip” during this time of cryptocurrency fall but it is much more than just buying. The reports and advice according to analysts have been that investors should remain calm, using that very period to engage in a lot of research on how to come back stronger with their trades, seek new ways of turning their exchange around, and put in the work to work with the best of exchange.
In the reports of Igneus Terrenus, who is the Head of Communications at the Cryptocurrency Exchange Bybit, he said the dipping period is a large window that comes with substantial opportunity. It might as well be a trap if not adequately engaged and planned for. The pullback as seen in the sector can position most investors for a major enlargement which they have been eyeing in the market but waiting for the right time to engage. With this being said, in as much as it is easier said than done, it is advisable to be equally patient and stay calm and watch how the whole period unfolds. He made emphasis on how this time is a very delicate period for every investor and crypto engager to look inward and watch trends with adequate attention.
For every patience committed in this duration and every correction made, it leads to a prominent digital asset that comes out powerful and with much more stability in a higher price range after the whole storm has settled. During this period, every investor needs to consider the time frame of their engagement and investment which will allow them to be rational about cyclical movements. The short-term trading options require precise precision and prediction with having an investment in quality assets for the long run will position you to have more buffer for adequate volatility. This time of enormous opportunity also gives investors a realistic evaluation of their risk craving before diving into any project and awards them adequate strategy with proper implementation.
As it is often said even though there is a dip, one thing long-term investors have always yearned for is that no one has ever lost their money while waiting or holding onto their Bitcoin. This advocates the need to be patient and rational. With the crypto’s volatile nature it is challenging to know when to buy and how much to buy. Therefore it is necessary to not wait at the bottom and then miss the main opportunity but to have a definite set of rules with an uplifting strategy.
BITCOIN DIP IS A BUYING OPPORTUNITY
The drop in the digital asset which fell on has been falling and hitting $33,710, which is the lowest since January 24. Within 24 hours it has dipped to $32,923 and this is just happening by early afternoon, meaning Bitcoin has shed a price of around 3.8% decrease over the past one day. This drop or dip in the value is expected to be used by individuals who hold enough cryptocurrency to influence the currency valuation and turn it into a major buying opportunity to leverage.
Bitcoin can be turned around in this way because of its robust cryptocurrency base which includes its digital, fundamental, viable, borderless, decentralized monetary system which has always remained the same all along. Bitcoin has just reached another milestone, therefore it should be allowed to enjoy the time while manifesting its power over different sectors.
The dipping moment is a moment that comes with landmark achievements and won’t come unnoticed by financial players and whales. At this point of dipping is where most active players in the cryptocurrency world will start engaging their game. Then they start employing different strategies to grant them enormous exposure to Bitcoin. A vital question that comes to mind is, what happens when there is a dip? The answer is not far-fetched, it results in a slumping stock market and most players will start looking for a way out by shrugging every detail about the dip and in return turning them into buying opportunities. It also allows them to learn more about how to bring about a paradigm shift out of the current situation.
During the dipping of cryptocurrency, the financial sector and stock market all focus on the long-term trends even though the market has slumped, so for every play and strategy employed, it is being regarded as a risk asset alongside the equities. According to the reports, Nasdaq fell 1.5% at some point and has continued in that state at a rate of 22% with the present rate of inflation in the U.S. economy. This has crippled a lot of sectors forcing governments to hike rates while making moves at eliminating the drops. This fall caused most institutional investors and well-resourced individuals to buy what is referred to as discounted Bitcoin.
WAYS TO PROFIT YOUR WEALTH DURING CRYPTO DIP
With the stock market struggling in this waiting period that demands plenty of coolness and patience from all the parties involved, everyone expects that this time is drawing profit through their cryptocurrency and yielding no substantial returns. This should however eliminate any sort of failure, with this dip there are also many opportunities in the dip to profit from our wealth. The outline below is a few methods to employ and strategies to unleash during this difficult time.
- HODL
Just as it was recommended on Reddit threads, “hodl”, this simple term means “Don’t Sell”. Cryptocurrency is volatile and according to the rule of investing which clearly states that you should sell more than you bought. Even though you might have lost some money in the short term and your investment has not been that fulfilling, then you should deviate from making any quick action or decision as a result of shock due to the crypto dip.
As it has been advised, keep calm and stay clear and observe the current thread with the utmost attention. It is a time to ask pertinent questions if you are investing for the long term or if it is for a short time to make quick cash. Even though both sides of thought can be beneficial but can as well influence your strategy. Therefore restrategize by changing your short-term game, if it isn’t paying to a short-term trade It can as well be a time of not taking any action but holding onto what you have but investing yourself with the trends. Doing this might as well be profitable to your investment in the long run.
- SHORTING THE MARKET
It is the mindset of many people that you can only profit from cryptos when the market is going up but with a great method called short selling, there is the possibility of increasing from a dipping market too. Therefore if you feel the current market crash or dip is a beginning and the prices will plummet further, then shorting certain cryptocurrencies might as well be the way out.
However, short selling is a very risky strategy. You should only short-sell cryptos if you have a keen understanding of the market and are confident that prices will dive further. Bill Gates recently joked that he would short cryptos “if there was an easy way to do it.”
- EDUCATE YOURSELF
You must engage this time before selling to educate yourself and engage more with learning further about cryptocurrency, could be that you don’t have that understanding. Invest yourself in elevating your knowledge of crypto and all other Blockchain technology in the NFT and Metaverse world.
Engage in adequate technical analysis training that will position you for the next cycle. This training helps you to identify where you are lagging and helps you to restrategize in the cryptocurrency market. With such training, you will learn how to identify the best opportunities, how to spot a decline, and how best to make excellent trading decisions based on the cycle you are currently in. Beyond crypto as well include the learning of creating and selling your own first NFT which opens your understanding of the newest digital technology of Metaverse.
- DAY TRADE THE ALTCOINS
Speaking of altcoins, the crypto market is so wide.
On the Coin Market Cap Gainers & Losers, you’ll find a few altcoins making excellent gains every single day. Even during the crash, you can make big money on the right altcoins.
Unfortunately, trading altcoins is almost like throwing darts in a power outage. It has less information available about them, and could very easily be a scam run by development teams looking to cash in all the indications and take the entire profit for themselves. Read more on Do’s and Don’ts of Crypto Day Trading to get detailed information to help you get started.
- SHAPE YOUR ASSETS
Dipping the cryptocurrency can often force you into buying, most especially when the market is down. But a wiser decision is to use this very time as an opportunity to spread your asset. Every investor is making an effort to enrich himself and not have a financial ruin that will put all your money into a strange pursuit.
The way out is to buy instead, and decide to pass the not so followed route by investing in the regular and popular stock market. The stock market allows for plenty of opportunities, whether you are in for fast cash out in dividend stock or you are trying to mitigate risk by investing in bonds.
The best of it all is to buy a property, the crypto market has often been validated by real estate as such a valuable investment. Investing in real estate can allow you to have an outright amount of investment and put you ahead of the crypto dip.
- SET LIMIT TO “BUY THE DIP”
As it has been discussed that buying the dip is synonymous with engaging the drop in the market to buy as much stock up as possible while believing that it will ultimately turn around in no time and can put you ahead in your investment. In the traditional stock market, this is sound logic as cycles are somewhat predictable and the market generally always rises over time.
In the crypto market, it is pertinent to ask questions more about any sort of investment you are engaged in because it is a relatively new idea and market swings can be so dramatic that it makes it difficult to predict which coins will be of great benefit and which won’t. Buying the dip could mean you just pump much money into losing a prospect
If you end up buying the dip, it is an excellent idea but make sure you are not investing your life savings. In as much as this can eventually turn in your favor but invest wisely. Set a limit on yourself while buying and do as much spreading of your investment as possible. Even though Bitcoin and Ethereum are most often the solid ones, they do well to buy the other ones with great prospects as well.
CONCLUSION
We are all investors but different in our unique way and we do have our hungry appetites aimed at adopting different investment strategies. Irrespective of your investment strategy, every deployment should be backed with adequate research during the dipping of cryptocurrency. This helps you to determine your price targets for acquiring positions and selling them afterward.
Provided the approaches to profiting during the dip of cryptocurrency above may seem viable, you must evaluate them carefully and back the decision to go with any of them with sufficient research, fact, and understanding for adequate engagement.
Even if the approaches mentioned above seem viable, one should only adopt them after carefully evaluating their needs and backing any decision with sufficient research and understanding.