In the crypto world, it’s easy for investors to get caught up in the excitement of a big price rise and want to buy in during a spike, only to panic sell during a dip. This has been happening since the start of 2017 and is still happening now. For example, let’s take a look at LUNC USDT – it was trading around $3.00 in May 2017.
Around October 2017 (the first dip), LUNCUSDT fell to about $1.86 for a month or so and then came back up to around $2.20 which is when we started seeing an influx of investors looking at this coin as a good value play.
Within this article, I will explain why you should buy the dip and how to know when is the right time to do it.
What is Buying The Dip?
Buying the dip can be a great way to make some extra money in crypto. Many people have tried it, and many have made a lot of money off it. But not everyone has been successful, and many have lost money through trying to buy the dip.
Here is what you need to know to make sure you will be successful if you try this strategy:
- Understand that buying the dip is always a gamble, and this should be considered before you make an investment based on buying the dip. Some dips are bigger than others, so be careful when buying a dip. You may not want to take a chance on a small dip just to turn around and lose your investment.
- If you are going to buy the dip, do NOT put all of your cryptocurrency into one currency. Doing this is risky because if that one currency dips too low or even disappears, it takes all of your money with it. Spread out your investments over multiple currencies so that if one dips, you won’t lose everything.
- A good time to buy the dip is when there is an upcoming event related to that currency. This means that more cryptocurrency could be needed by those who are involved in the event.
How To Buy Dip?
The crypto world is a rollercoaster ride. Whenever the price dips, it gives you a chance to buy in at a lower price and make a profit as the price goes up. However, it’s not always easy to know when to buy or sell.
Here are some tips for making sure you’re buying low and selling high:
- Never buy at the peak of the market. Make sure you look at the long term trends instead of reacting to short term volatility. Once the market starts to correct, though, you’ll be able to figure out when it’s a good time to buy in at lower prices.
- Buy on dips and sell on peaks. This is one of the most obvious ways to make money in the crypto market—especially for someone who doesn’t have extensive trading knowledge. Follow your favorite coins’ prices and wait for them to drop before buying more during their dip, then wait for them to peak and sell off some of your holdings while they’re high. Then you can buy back into your coin once it starts going down again so that you can make another profit cycle.
- Don’t just buy any old dip in the market! You need to determine whether or not there’s a reason why the value has been dropping so much
The first step to buying the dip is to choose a cryptocurrency that you would like to invest in. There are many different cryptocurrencies out there, but you should choose one that has a strong community of supporters, a good development team, and that has potential for growth.
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are examples of cryptocurrencies that have all three of those things. Once you’ve chosen your cryptocurrency, it’s time to decide how much you want to invest in it.
Also, LUNC seems like a good time to buy after they had such a low price dip recently since late September 2018. They have also been listed on new exchanges (with more coming soon) which will help boost their trading volume and therefore the LUNC price.
This amount should be between 1-5% of your overall portfolio so you don’t lose too much money if your investment doesn’t turn out how you want it to. Once your money is on the exchange, purchase some coins from the sell section of the market. Your coins will then show up in your wallet within 24 hours where they’re ready to be traded or sold back into fiat currency (USD).
Utilizing Trading Bots
Trading bots are very common in the cryptocurrency space. They are the software that helps to find the “buy low” and “sell high” opportunities by using technical indicators (and sometimes also using news events).
The best way to use a trading bot is to create it yourself. It requires some programming skills and a lot of time, but if you do it yourself you will be able to modify it easily to your needs.
If you don’t have time or programming skills, you can use already existing bots on crypto exchanges. They usually have a paid plan or trial period where you can try them before buying a subscription or creating your own bot.
When Is The Good Time To Buy The Dip?
The best time to Buy The Dip is usually after a big crash or major news event about a coin. It’s important to have a plan for when to Buy The Dip before you even invest in something, otherwise you could get caught holding the bag when it crashes.
This plan should include researching if there is any news behind the crash, being able to identify if it was caused by manipulation, having an idea of what price point you would consider buying back in at, and knowing which exchanges/wallets you will use to purchase them
In order for you to know when it would be a good time to buy the dip, you have to figure out whether or not it actually is a dip. A lot of times people will see that the price has dropped and they will automatically assume that it is a dip, but it really isn’t so easy as that.