{"id":433,"date":"2019-06-17T14:33:58","date_gmt":"2019-06-17T14:33:58","guid":{"rendered":"https:\/\/paybis.com\/blog\/?p=433"},"modified":"2026-04-24T08:41:13","modified_gmt":"2026-04-24T08:41:13","slug":"how-to-buy-the-dip","status":"publish","type":"post","link":"https:\/\/paybis.com\/blog\/how-to-buy-the-dip\/","title":{"rendered":"How to Buy The Dip in 2026 – The smart trader\u2019s guide"},"content":{"rendered":"

In this article we take a look into the methods and techniques you can use to learn how to buy the dip and sell the top in 2026.<\/strong><\/em><\/p>\n

Bitcoin and Altcoins have captured the attention of retail investors. Everyone, from young to old, is buying and selling cryptocurrencies. <\/span><\/p>\n

In order to support the increasing demand, crypto exchanges have appeared all over the world. As a result, tens of thousands of individuals are able to \u201cbuy the dip\u201d and make a living directly through digital assets. <\/span><\/p>\n

Does that sound like something you\u2019d like to do as well?<\/span><\/p>\n

If so, there are many ways to contribute to this financial revolution in order to get a piece of it and in this article we explain the ins & outs:<\/span><\/p>\n

    \n
  1. How you can use <\/span>Dollar Cost Averaging<\/b> to average out the price of your buy orders.<\/span><\/li>\n
  2. How to <\/span>buy the dip<\/b> and <\/span>sell the top<\/b> in an efficient way<\/span><\/li>\n
  3. An introduction to the <\/span>risks and dangers<\/b> of buying at a low price point<\/span><\/li>\n
  4. The <\/span>best tools<\/b> you can use for price analysis and speculation<\/span><\/li>\n<\/ol>\n

    Now when you got the sneak peek on what\u2019s about to come – let\u2019s dig in.<\/span><\/p>\n

    <\/h2>\n

    Dollar-Cost Averaging: How To Buy Cheap, Despite Volatility<\/span><\/h2>\n

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    Dollar-cost averaging (DCA) is an investment strategy designed to protect investors from short term volatility.<\/span><\/p>\n

    This method of investing is often implemented by smart traders that are looking to minimize their losses and increase the profit potential.<\/span><\/p>\n

    If you believe a particular asset is going to increase in value over the long term, but you are not sure where the price will go in the short term, this method might be the best investment strategy.<\/span><\/p>\n

    DCA simply stands for <\/span>repetitive purchases of a set amount on a set interval of time,<\/b> in order to acquire an asset at the average price of a given period.<\/span><\/p>\n

    For example, say you bought $100 USD worth of Bitcoin every day; at the end of the month, you would have accumulated $3,000 worth of Bitcoin. You could also make a $3,000 purchase at the average price of that month. It would be exactly the same.<\/span><\/p>\n

    By the same principle, assume you bought $3,000 USD worth of Bitcoin at the beginning of each month, for a whole year. At the end of that year, you would have accumulated the equivalent of one big purchase of Bitcoin at the average price of that year.<\/span><\/p>\n

    The removal of the uncertainty created by short term volatility is the main benefit of this strategy. <\/b>Rather than taking the risk of trying to buy at the lowest price, you have certainty about an average price over a given period of time. <\/span><\/p>\n

    If you were certain that the price of an asset was going to increase from now on and for a longer period of time, you would buy in bulk now and sell at a profit later on. <\/span><\/p>\n

    However, if we have <\/span>learned anything from the world of cryptocurrency<\/span><\/a> it is that you can never be certain about anything. This is exactly why DCA is a very useful investment method, especially for inexperienced traders.<\/span><\/p>\n

    It is meant to be used by buyers who believe in the fundamentals and are looking to hold onto their coins for the long term.<\/span><\/p>\n

    This strategy works great for buying during a bear marketing and during the early stages of a bull market.<\/p>\n

    It also helps you profit from the ending stages of a bull market.<\/span><\/p>\n

    \"how<\/path><\/svg><\/a><\/picture><\/p>\n

    Cryptocurrency prices can be measured by percent gains or losses on a 24-hour or weekly chart, as seen on coinmarketcap.com<\/a>. <\/span><\/p>\n

    When the price percentage of a particular asset is increasing, from +1-5% a week to, +10-20% on a consistent basis, that\u2019s a good sign (but not definitive) you are in a fully-fledged bull market. <\/span><\/p>\n

    There\u2019s no guaranteed way to help you sell at the top, so at the end of the day, you will have to be the judge of how much is too much and when it is time to take profits.<\/span><\/p>\n

    Buy the Dip Strategy<\/span><\/h2>\n

    Another old school \u201ctrading strategy\u201d in Bitcoin is known as \u201cBuy the dip\u201d. <\/span><\/p>\n

    The investing term is sometimes referred to as \u201c<\/span>HODL\u201d<\/span><\/i> and has made people considerable amounts of money, allowing them to ride the bounce upwards from the occasional volatility of the crypto markets. <\/span><\/p>\n

    When you are considering how to buy the dip, you are trying to <\/span>catch the bottom of a major correction or a pullback in the price of a cryptocurrency<\/b>. The more volatile the dip, the better the opportunity to earn.<\/span><\/p>\n

    Nevertheless, this method carries a significant risk that you should be aware of – the risk of speculation.<\/span><\/p>\n

    For example, you may assume that the price has found a bottom and buy-in, only for it to drop even lower for a longer period of time.<\/span><\/p>\n

    For that reason, and in order to minimize risk, it is essential to \u201cbuy the dip\u201d <\/span>during a bull market.<\/b><\/p>\n

    Keep in mind – This quote was popularized specifically with Bitcoin and not with Altcoins. We\u2019ll talk more about this in a moment. <\/span><\/i><\/p>\n

    Moreover, buying the dip successfully gives you a lot of options. <\/span><\/p>\n

    If you are a <\/span>swing trader<\/span><\/a>, it sets you up perfectly to sell during the next volatile upswing, where, if you were up for it, you could buy back again when the price declines. <\/span><\/p>\n

    If you buy the dip low enough and the prices start to increase, you are \u2018in the money\u2019 and can shoulder almost any volatility, since you bought for a relatively low price. <\/span><\/p>\n

    Notice the chart below. It is a monthly candle chart for Bitcoin in the bull market that went on from the beginning of 2015 to the end of 2017. <\/span><\/p>\n

    Almost all of the candles that I pointed at below are red candles, meaning the monthly closing price was lower than the opening price of that same month.<\/span><\/p>\n

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    <\/path><\/svg><\/a><\/picture> Monthly candles of the bull market run in bitcoin from 2015 to 2017<\/p><\/div>\n

    Not all are like that though. Some candles may see a significant correction within the same month, such as the month of July 2017. <\/span><\/p>\n

    Notice also that all these \u2018lows\u2019 or correction candles ended at a \u2018higher low\u2019 than the previous ones. <\/span><\/p>\n

    This means that the new lows are higher than the longest correction candle before it, even if a recent price drop has occurred.<\/span><\/p>\n

    This sign is a common indication of a bull market, especially when the trend occurs for a longer time.<\/span><\/p>\n

    Risks and Dangers of Buying the Dip<\/span><\/h2>\n

    In the above chapters, we have touched upon the risk of speculation. <\/span><\/p>\n

    But this strategy has more risks and dangers.<\/span><\/p>\n

    For one, what happens when you decide to \u201cbuy the dip\u201d during a bear market?<\/span><\/p>\n

    In this case, utilizing the \u201cHODL\u201d method can be devastating, even for smart traders and seasoned pros.<\/span><\/p>\n

    The consequences of buying during a bear market are best summarized by popular memes that came out over the past year, such as this now legendary video “buy the dip” meme:<\/span>
    \n<\/span><\/p>\n

    When you are trying to buy the dip<\/a> from r\/Bitcoin<\/a><\/p><\/blockquote>\n