A basic investment strategy can be phrased as “buy the dips,” this doesn’t mean buy while an asset’s price is going down, it means buy after it settles.
In other words, “buying the dips” should be thought of as buying after a price settles after dropping (although prices don’t always settle for long; so it can also be read as “buy when the price starts recovering.”
The other part of this strategy is then to sell at peaks after the price settles again (or while it is going up after a good run or when it starts to come back down again).
This is to say, “buying the dips” generally refers to aiming to buy low, and then the other part of the strategy would be to “sell high.”
We can treat this as “buy the big dips” (as in, buy when the price has gone well below the average and then stabilized) or we can treat this as “buy the little dips” (as in, buy when the price comes down from wherever it last was then stabilize).
And, we can aim to sell right back, or we can dollar cost average and build a medium or long term position like this over time.
In words, there is more than one way to “buy the dips” (with crypto or any other asset).
The strategy isn’t fool proof, but it is a smart and simple investing strategy that doesn’t take much skill or techincal know-how to implement.
