Should you buy the Crypto Dip?
The Implications of Crypto Winter
Everyone knows that crypto prices occasionally fall steeply from their historic highs. Still, there’s no reason to think that crypto isn’t a great investment over the long term. In the crypto investment sector, there is a special term for an extended period of lower-than-expected crypto prices. Such a period is known as “crypto winter.” In the past, people who sold their crypto during crypto winter (CW) lived to regret it. The fundamental mechanics behind crypto will likely keep digital currency a big part of the national conversation. Arguably, CW can provide positive benefits for the broader crypto community. During CW, the least serious crypto companies tend to fade away.
Avoiding Investor Mistakes of the Past
When figuring out when to buy crypto, you should keep in mind the most common errors investors have made in the past. For centuries, investors have mistakenly bought when the market was high and sold when the market dropped. Though this is a terrible investment strategy, it’s a natural function of human nature. This tendency has affected investors in bonds, stocks and commodities. It should surprise no one that crypto investors are affected by the same human frailty. When markets fall, many people lose their nerve and try to cash out their holdings. Retail investors are particularly prone to get spooked in this manner. In the context of crypto, lots of people are liquidating their crypto holdings every day. Furthermore, there are plenty of thoughtless voices predicting “the end of crypto.”
Crypto Winter Can Benefit the Most Responsible Crypto Exchanges
No one with deep knowledge of crypto’s history would engage in such baseless alarmism. This CW represents a golden opportunity for far-sighted investors. In the early days, you never really had to think about when to buy crypto. Early adopters were virtually guaranteed to realize profits. These days, however, you have to use a bit more discernment. If you buy the dip correctly, you may be able to restore that sense of certainty to your financial life.
Buying the Dip the Smart Way
According to the financial experts with SoFi, “Unlike the regular market, you can trade crypto 24/7.” Using the best modern fintech, you can take advantage of the democratization that is trending in modern investment markets. When you buy the dip, you should buy established coins. This is not the best context for taking a risk on new coins. As of right now, Bitcoin and Ethereal are the most well-established cryptocurrencies. These are the currencies that have proven staying power and appeal. Bitcoin is uniquely well-trusted for being the very first cryptocurrency. This venerable coin introduced the global public to the unique benefits of decentralised digital currency.
While buying the dip is smart overall, you need to do it the right way. It’s rarely a good idea to buy crypto using leverage or borrowed money.
