It's a well known fact that crypto works with cycles the bear and bull cycles and the bear cycle is charactarized by a dip so it's important that anyone investment in crypto currency especially Bitcoin should have a good understanding of what this dip run is all about with the goal of taking advantage of the cycle to Make gain, the most important advantage of buying Bitcoin during the dip is to buy at a lower price than expected and so anyone buying will leverage on the low price and accumulate more during the dip
Benefits of investing in the Dip
------> Potential Rebounce of price.
It's a well known fact that Bitcoin has Rebounce back up to the top after a dip run so the dip cycle offers investors a potential strong Rebounce in price if they invest and accumulate Bitcoin assets because there is the likelihood of the price bouncing back in the future so leveraging on the dip in acquiring more Bitcoin assets is a good one for long term investors.
-------> Maximizing on the market fear.
When Bitcoin is undergoing a Dip cycle alot of people sell their Bitcoin assets due to fear and panic so investors with a long term plan can capitalize on this fear by accumulating Bitcoin assets for the purpose of holding on to in the future when the price move up back.
------>Lower Average Entry Price.
When you buy at a lower price different from the way others buy, Averaging down a strategy to buy more of an assets as it price falls resulting in a lower overall average in the purchasing price of Bitcoin.
Risks factors to Consider when buying in the Dip.
------> Increased Volatility.
Buying crypto in the Dip is a good idea but increase in volatility implies that price will continue to fall and fluctuate, further drops in price is expected before price of Bitcoin can bounce back and this can lead to emotional stress for the investor.
------> Dips may not Always recover.
It's important to note that Dips can remain in an extended period so it's important for investors to be aware because there is no guarantee of Rebounce in terms of the performance of the price.
--------> Timing.
Timing is very crucial because knowing when to buy during a dip is important because when you buy Bitcoin too early in a dip run the price will continue to drops further before it will recover again so knowing when to buy in the Dip is important.
------> External factors and Market sentiment
Bitcoin price can be affected by broader economic factors such as market forces and Regulations external factors too like government policies can keep the price of Bitcoin down longer than expected, news about the crypto currency market plays role here so it's important to keep yourself abreast with the latest news about Bitcoin before buying in the Dip is very important.
Strategies to use when investing in the Dip
------->Dollar cost Average ( DCA)
A DCA method could be effective during the Dip cycle in this method you can invest a fixed amount of money in Bitcoin instead of trying to time the the Dip which is not an easy thing to do, when you regularly purchase Bitcoin using a fixed amount of money it can help you to reduce the impact of the Dip so DCA method is one way that investors could use in a bid to reducing investment during the Dip.
-------> Holding.
The best way one can benefit more on Bitcoin in terms of the price is to hold your Bitcoin assets so holding on to your Bitcoin assets is one effective strategy that investors during the Dip cycle.
---------> Risk management
Risk management is key so anyone investing during the Dip should only do so when they are prepared to lose money that they use investing because volatility is one characteristics of the Dip cycle
