The cryptocurrency world has recently made a lot of noise. Bitcoin has reached 60,000, and Ethereum 2.0 is prompting ETH to skyrocket. As more individuals get interested in cryptocurrency, experienced traders frequently advise newcomers to purchase the dip. What does this entail, and how do you go about doing it?
Let’s take a breather. The first thing we know is that we are expected to purchase. So, now that it’s sorted out, what’s the catch?
What Is a Cryptocurrency Drop?
When trading any cryptocurrency, there is always a means to visually analyse the market and pricing. Candlestick charts are available on the majority of platforms. Examine this Phemex BTC/USDT Trading chart.
How do you read a candlestick chart?
As you can see, the Candlestick chart has a lot of red and green symbols known as candles. Thin lines protrude from above and below each candle. Candle wicks are what they’re called. Each candle indicates the price range in which an asset traded at a certain point in time. Time periods may be modified so that candles reflect any time period you wish. Depending on the amount of detail you wish to study, you may use 1-minute, 4-hour, or 1-day candles.
When should you purchase a Bitcoin dip?
These candles make it simple to imagine a dip. A green candle indicates that the price has climbed since the candle’s inception. A red candle, on the other hand, implies a price drop. Dips can be identified as one or numerous red candles in succession, depending on the time range you’re looking at. Buying the dip is purchasing an asset at the very bottom of the previous red candle before the trend flips and prices begin to rise again.
Who is buying the cryptocurrency drop?
Day traders make their money by purchasing the decline. They purchase at cheaper prices and sell at higher ones throughout the day, gradually increasing their profit. Long-term investors who are not interested in following the market every day should aim to accumulate a substantial sum that will be worth much more in the future. Unless you have the means to purchase a substantial quantity that you are content with right now, you will need to build up your assets over time. The ideal method is to avoid purchasing a coin at the pinnacle of the market price. Instead, simply buy more whenever the price drops. Depending You may choose whatever settings you like based on your budget and the amount of time you have to observe the market. This may mean buying more every time the price drops by $500 or $1000. Of course, there’s no assurance you’re purchasing at the bottom of the slump, but at the very least, you know you’re not paying the maximum price imaginable. No approach, like everything else in trading, will be one-size-fits-all. You must consider what you can afford to lose and how much time or resources you can devote to the market.
What is BTFD stand for?
BTFD is an abbreviation for “Buy the F*****g Dip,” an angry cryptocurrency slang word used online to either hype up the next cryptocurrency double or triple-digit surge or push others to buy cryptos. BTFD has a deeper meaning than “buy the dip,” because to the rated R language and the manner in which it is employed. BTFD is being utilised more openly online to persuade individuals who are buying the dip to purchase even more of it and go all in. Following the sell-off from all-time highs this spring, when most cryptocurrencies dropped about half of their value, this was the perfect moment to BTFD. However, we cannot always foresee how deep the slump will go, and this is where many investors fall short.