What does Buy the Dip mean?
lt means buy the dip. But the dip does not mean the nacho cheese dip in the cinema, but it is a special buying strategy of assets. So you buy cryptocurrency or other assets during sharp price drops and hope to have reached the lowest point, the so-called bottom. Everyone who buys the dip assumes to have made a bargain.
So it is expected or hoped that the initial price will be reached again as soon as possible or even exceeded. Buying the dip can be very profitable if the asset is moving in a general uptrend. However, it can become a losing trade when the asset is in a downtrend.
For this reason, it is very important to keep an eye on the overall price trend and to refrain from hoping to make a quick buck. When investing sustainably, you must always keep an eye on the time horizon and not think too short-term. "*
*This is not financial advice or a buy recommendation, but only our own free opinion.