The “Buy the Dip” Mirage They Don’t Warn You About
Let’s unpack this like a math teacher exposing the painful truth behind losses.
You’ve heard it a million times:
“Just DCA your way to success!”
“Buy the dip—it’s easy money!”
But here’s the harsh math they skip—the brutal reality of drawdowns.
Drop 10%? You need +11% to break even.
Drop 50%? You need +100%—double your money—just to get back.
Drop 90%? That’s a shocking 10X (900%) rally needed just to break even.
If your coin plummets 90%, it doesn’t just need to “go back up”—it needs to soar 10X to get you to zero. No profits—just back where you started.
The Psychological Trap
When your coin starts climbing again, the same people who told you to “HODL” shout:
💎 “Hold tight! This is just the start!”
🚀 “We’re going parabolic!”
But think about this:
👉 Your break-even point is someone else’s 900% profit.
If you had a 900% gain, would you hold forever—or take profits?
The Hidden Truth About “ATH Discounts”
“It’s down 80% from ATH! A steal!”—sure, but:
Is the project still alive?
Is there demand?
Is the market even paying attention?
Look at coins like $SAND , $POL , and others—some didn’t just dip; they collapsed. Recovery depends on whether the project can regain relevance.
When Buying the Dip Actually Works (and When It Doesn’t)
✅ Works: solid projects, strong uptrends, heavy volume at lows
❌ Doesn’t work: dead projects, no demand, pure hopium
Before buying, ask: Is this a real dip or a death spiral?
Trade smart. Stay alert.
