Let me explain this the way a teacher breaks down a brutal math problem — because that’s exactly what this is.
You’ve probably heard it a thousand times:
"Just DCA!"
"Buy the dip — it’s free money!"
Sounds smart, right? But here’s the harsh reality they never teach you: the math of losses hurts.
📉 The Brutal Math Behind Drawdowns
Let’s do the numbers:
Lose 10%? You’ll need +11% to get back to even. Manageable.
Lose 50%? Now you’re down bad — it takes +100% to break even.
Lose 90%? Brace yourself — you need a +900% gain (a full 10X) just to recover your starting capital.
Let that settle in.
If your favorite coin crashes 90%, it doesn’t just need to “go back up” — it needs to 10X from the bottom just to break even. Not to profit. Just to survive.
🧠 The Mind Game No One Talks About
Once the price starts moving back up, those same people who yelled “HODL!” will now shout:
💎 “Don’t sell! We’re just getting started!”
🚀 “It’s going parabolic!”
But here’s the question:
If you were up 900%, would you hold on forever? Or take your profits?
👉 Remember:
Your break-even is someone else’s life-changing exit.
⚠️ The Myth of “ATH Discounts”
You’ll hear people say:
“It’s down 80% from ATH — what a deal!”
But they won’t tell you:
Is the project still building?
Is the community active?
Is there real demand?
Does anyone still care?
Some coins like $SAND, $POL, and others didn’t just dip — they collapsed. And many don’t come back.
✅ When “Buying the Dip” Can Work
It works when:
You’re in a healthy uptrend
The dip hits solid support
There’s high buying volume at the bottom
It doesn’t work when:
The project is dead and forgotten
You're buying at -90% because it’s “cheap”
Your strategy is based on hopium, not logic
❓ Ask Yourself Before You Buy the Dip:
Is this a dip or a death spiral?
Am I buying value or falling into a value trap?
If it drops another 50%, will I still believe in this?
Be sharp. Don’t just “buy the dip” — understand what you’re buying.
Because sometimes, that “dip” is the beginning of the end.
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