10.11 Epic plunge, when is the right time to buy the dip?
Now is not the "best time to buy the dip", but it is definitely the time to "start planning your moves".
It is recommended to invest in batches. Everyone feels that the panic is at its peak, which means we are not far from the bottom.
The panic in the market has mostly been released, and the bottom is slowly forming, although it may still drop a little more.
But in the long run, we are definitely closer to the bottom than to the top now.
The key is to pick the right assets; many altcoin projects may really not recover this time, like DOGE and BNB. Buying them won’t lead to death, so when is the right time if not now?
On the surface, this is due to Trump restarting the trade war, which stirred up a hornet's nest, but inside it’s all bombs: some people used USDE to engage in circular loan arbitrage, leveraging heavily, and as a result, when the market dropped, they were directly liquidated, which also dragged down financial assets like BNSOL and WBETH.
Altcoins suffered even more, with many dropping over 60%, worse than the crashes of 312 and 519, and liquidity was completely wiped out.
This time, we really need to remember the lessons. Those high leverage and circular loans on exchanges may seem profitable, but they also face the worst losses.
Although there haven’t been significant losses this time, it is still quite frightening to think about.
In summary, always remind yourself:
1. Do not go all in on positions.
2. Absolutely do not use high leverage.
3. Keep enough "emergency funds": No matter what you invest in, always reserve 3-6 months of living expenses. Even in extreme market conditions, don’t rush to sell at a loss to avoid "forced losses".
