🚨The Hidden Risks of "Buying the Dip" in Crypto
While strategies like "buying the dip" and Dollar-Cost Averaging (DCA) are widely used in crypto investing, they come with significant risks. Recovering from losses is harder than it seems—a 50% drop requires a 100% gain to break even, and a 90% drop needs a 900% recovery. Psychological traps often keep investors holding in hopes of a rebound, while others are cashing out. Not every dip is a buying opportunity; some assets may never recover due to weak fundamentals—examples include tokens like 1INCH and ICP. To navigate wisely, only DCA into fundamentally strong projects, confirm the asset is in a healthy trend, and always assess whether a dip signals a temporary setback or deeper issues. Informed, research-driven decisions are key🗝️ to managing risk effectively.
