Quote from: Felicity_Tide on July 04, 2024, 08:58:02 PM

Quote from: SOKO-DEKE on July 04, 2024, 06:36:31 PM

Many people who seek to buy Bitcoin at a dip are typically short-term investors. They constantly look for opportunities to purchase Bitcoin at a lower price and sell when its price rises slightly. This strategy is their primary method for making a profit.

Since their aim is to buy the dip, and sell when the price is slightly above the buying price, shouldn't we call such individual a trader?, rather than a short-term investor?. Because from own point of view, a short term investor might decide to buy the dip, or even make use of the DCA approach, but won't do the investment for long, as he/she might want to capitalize on a very good opportunity such as a price that is convincing enough to take profits. While a trader on the other hand might just want to capitalize on every slight price increase, just as you've mentioned.

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However, the reality is that these individuals often struggle in the market because the price of Bitcoin may not drop as they expect. Even when they manage to buy Bitcoin at what they believe to be a low price, the price might not increase as they hope. As a result, it can take a significant amount of time for their plan to work out, and even then, the profits may not be substantial.

This is just the major problem, Time wasting. Having the mindset to buy the dip is clearly a way of wasting time, as most people hopes that the value of the dollar doesn't depreciate, but the image below is an example that says otherwise. It is advisable to buy Bitcoin the moment you have the funds. Though buying the dip is very profitable, but we must understand that it is time wasting as the dollar value does not appreciate much, but rather go the opposite way.

But the actual point of buying the DIP is to buy more units in Bitcoin for them same Dollar spent if Bitcoin was at a higher price point. The best illustration for that is the current state of the market during the last two weeks. It was more than $62,000 if you bought Bitcoin last week, but with the same amount of money you could get a discount and buy more units in Bitcoin this week, and probably next week as well. Cool