You've heard this before — "Just keep buying the dip" or "DCA through this."
But before blindly following this advice after a major market crash, it's worth pausing and looking at the math behind recovery.
Because the deeper the fall, the harder the climb becomes — and most people never talk about this part.
🔍 The true cost of market declines
Let's break this down in simple terms:
📉 If your asset drops by 15%, you need about +17.6% to recover.
📉 If it drops by 60%, a full recovery of +150% is required just to break even.
📉 If it drops by 92%, a massive increase of +1,150% is required to return to your original price.
Think about this:
If you're holding a token that has dropped by 92%, you're not looking for profit — you’re just hoping to return to where you started.
It's no longer about making a profit — it's about recovering losses.
💭 Emotional trap
This is where it gets tricky:
The moment your coin finally returns to your original purchase price, you’ll hear voices from social media saying:
💎 "Hold tight, diamond hands!"
🚀 "The real rally is just beginning!"
But here's the harsh truth:
👉 Your breakeven point is a multi-hundred percent gain for someone else.
Now ask yourself:
If you were sitting on a return of +1,000%, wouldn't you consider selling and securing profits?
🧠 Hidden risk of misleading metrics
Most charts and influencers show how far prices have fallen from their peak —
🟥 "An 85% drop from the all-time high" sounds painful.
But what they don’t tell you is how unrealistic it is for some coins to ever return to those levels.
Look at examples like:
$SUSHI ,
$ICP ,
...And many others that didn't just retrace — they collapsed.
Recovering from such widespread destruction is not just hard — it can take years, if it ever happens at all.
✅ Smart approach
"Buy the dip" only makes sense in strong, actively developing projects — not in coins that may already be fading.
Similarly, DCA is only effective when applied to fundamentally sound assets with long-term potential.
Before you hit the buy button, ask yourself:
Is this a short-term correction in a reliable project?
Or is it a long-term decline with no real signs of recovery?
👉 Always assess the risk-to-recovery ratio, not just how "cheap" the price seems.
Because what may seem like a discount can actually be a trap with no exit.
