But all you hear is “buy when the price drops” and there’s nothing practical about it. Here is the first detailed guide on how to buy when the price drops.
1️⃣➮ Buying when the price drops means buying at the lowest possible price.
The question immediately arises: how and who can predict this?
The answer is that no one can.
But we can get as close as possible by having the right strategy👇
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2️⃣➮ “Buy on Dips” includes 3 factors that need to be followed to achieve maximum success:
When to buy
What to buy
How to buy
If we have answers to these questions, we will be successful in buying when the price drops
Explore each stage:
3️⃣ When to Buy
To understand when to buy, consider the typical price increase cycle pattern.
18 months
This entire period can be divided into two phases: growth and peak
Now, let’s analyze the stages in more detail
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4️⃣ Price Increase Phases
Growth: A phase where you need to accumulate your positions and build your investment portfolio, lasting for about ~14 months.
Peak: The period when you need to proactively take profits from your positions and transfer them to stable assets lasting around ~4 months.
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5️⃣ Psychology of Price Increase Cycle
An additional method will help you navigate is the Cheat Sheet Wall Street
It clearly shows the chart of the price increase cycle and its psychology
Evaluate the situation in the cryptocurrency community and estimate the phase you are in
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6️⃣ What to Buy?
Everyone wants to maximize profits, 100 times and more, but the important thing is not to lose everything.
You can earn a profit of 50%-100% from $BTC or $ETH
But the real profit now comes from altcoin (AI, DePin, RWA, AI Agents, Memecoins).
7️⃣➮ Build an investment portfolio with long-term transactions like $BTC, $ETH, $SOL
Just like short-term chain transactions such as low-caps/memes
In this way, you balance the risk ratio % of your investment portfolio by diversifying.
Also remember to keep a % in stable assets
8️⃣➮ Now we have discussed when to buy and what can be bought in general
But the main aspect of “buying when the price drops” is to do it right.
To do this, we will use the average cost strategy
Let me explain further.
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9️⃣➮ Average cost strategy in a simple way, is to buy in parts, average down buying
For example, with a $1k investment portfolio, it will look like this:
First-time purchase $100
Buy for the second time $200
Buy for the 3rd time $300
Buy for the 4th time $400
But we also need to know exactly when to buy with such portions:
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1️⃣1️⃣➮ Normally, it’s best to use $BTC as the base price
So, as soon as $BTC drops 5-7%, we buy more
Also remember that altcoin/memes are down 10%-20% during this time
It is important to understand that some altcoins do not react to price fluctuations of $BTC.
1️⃣2️⃣➮ Let’s summarize our average cost strategy, and it will look like this:
first purchase $100
In this way, we will minimize the average purchase price and get closer to buying when the price drops.
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1️⃣3️⃣➮ Knowing when to buy, what to buy, and how to buy will definitely lead you to buying when the price drops.
But to be successful in profit-taking and portfolio building, you also need a good risk management strategy.
DYOR! #Write2Win #Write&Earn
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Wealth is truly created by buying in during times of correction.
But all you hear is “buy when the price drops” and there’s nothing practical about it. Here is the first detailed guide on how to buy when the price drops. 1️⃣➮ Buying when the price drops means buying at the lowest possible price. The question immediately arises: how and who can predict this? The answer is that no one can. But we can get as close as possible by having the right strategy👇 Please provide the text to be translated. 2️⃣➮ “Buy on Dips” includes 3 factors that need to be followed to achieve maximum success: