In a market that never sleeps, prices change in moments, and profits can turn to losses in the blink of an eye.
In this volatile world, the investor wonders: 'Should I buy on the dip? Or sell at the peak? Or is the opposite true?'
The answer is not easy, but it starts with an emotional and practical understanding of the market's nature, and a vision free from fear and greed.
Buying on the dip: Opportunity or trap?
The drop is not always a warning sign.
In many cases, it is a golden opportunity to buy, provided that it is:
The market is undergoing a natural correction, not a total collapse.
The currency has a strong project and a reliable team.
Don't invest all your capital at once, but use a dollar-cost averaging (DCA) strategy.
But beware:
Buying during general panic may lead you to a long-term 'hang-up' if you are not sure about the project or the timing of entry.
Selling at the peak: Profit or deferred loss?
The rise tempts everyone, but the smart one knows when to be satisfied.
Don't wait for the 'perfect peak', as it is only known after it's too late.
Successful selling strategies:
Set predefined profit points and stick to them.
Use the partial sale feature to secure profits without completely exiting the trade.
Don't let greed prevent you from protecting your gains.
Emotion... the hidden enemy
The fear of loss drives you to sell at the bottom.
And greed for profit drives you to buy at the peak.
The solution?
A clear plan.
Risk management.
A deeper understanding of market movements.
And detach from emotion when making decisions.
Summary: When to buy and when to sell?
Buy on the dip... provided it is a logical drop.
Sell at the peak... without waiting for perfection.
And don't let your decisions mirror the emotions of traders around you.
In the end, success in the crypto world does not require you to be a genius, but to be calm, disciplined, and have vision.