Look at this cycle of crypto noobs or people who are extremely indecisive with their crypto timing when it comes to investing, not me though, I am completely decisive with mine. A crypto noob who has been hearing a lot about crypto, is considering investing but looking for the perfect time to buy the bottom. What am I saying? This is not just a behaviour found in crypto newbies, this can also be found in crypto oldies, when I say oldies I mean, old by discovery and research but still new in putting the realistic work of investing.
Some people spend so much time in the crypto space than actually investing, because they are scared of losing their money. Some of them don’t want to ever have a moment of loss in their portfolio, hence they spend their time wishing and waiting for the perfect low. Because they are over fixated on the idea of buy low and sell high. Buy low and sell high is good, it’s all we dream about, but no one knows the perfect low and perfect high. Some people get it, while some don’t, some got it and made cool money out of luck, while some people end up trapping their selves in the loop.
You trap your self by continuously waiting for the perfect low, it keeps getting deeper, but you feel it’s not yet the right time, this is why we have the dollar cost average in technique, this helps you to not get trapped in the loop. This helps you get in the market in the best position. It is done like this, if you are constantly waiting for the perfect low but you don’t know, you can divide your capital into several parts, this way you use each part to buy each dip. For instance, you have $100 to invest in a coin or a token, and the price of that coin or token is at $1 but you expect it to go below $0.5. Now that is a risk, because the market doesn’t care about what you think, it’s going to do what it wants to do. You can divide the $100 into 10 different pieces and have $10 each.
You can buy at $0.8 for $10, if it dips below $0.8, you buy again at $10, if it dips below $0.6, you can buy again. Or better still you can just place a buy order at different prices and let the market execute it for you. This way you are completely safe from being trapped in the loop of constantly waiting for the lowest low.