Bitcoin has dropped by 25% in the past 24 hours to around $30,000 (approximately ₦ 15million), the lowest price recorded this year after Elon Musk implied that Tesla could sell its cryptocurrency holdings. Other cryptocurrencies have also dipped, with Ethereum falling 32% to $2,200, Ripple dropping 31% to $1, and Dogecoin losing 42% of its value.
A growing number of traders and investors argue that Bitcoin, the oldest cryptocurrency and the largest by market value, deserves a place in a diversified portfolio. At the same time, skeptics counter that Bitcoin has no intrinsic value as few people use it to buy things. It is unproven as a “haven” asset and faces the threat of legal clampdowns that could make it worthless.
So should you buy the dip? And is it ever safe to do so?
You can either “buy the dips” to sell quickly for a profit, to build a long-term position, or incrementally take gains. However, we’ve curated a few points that could guide you through your decision-making.
Before you buy the dip, we suggest you consider the following factors:
- What the price has done over 1 hour, 24 hours, 1 week, 1 month, 3 months, 6 months, etc.
- Why the dip happened
- If the overarching trend is bullish or bearish.
Generally, a solid conservative strategy averages into a dip, increasing your buys as the price goes lower. This can help you build a long position or make a quick buck when the price and volume pick back up but regardless of the outcome of your decisions, we’d advise you to put aside the urge to buy impulsively or shalaye.
We keep to our words.
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