Should you buy a dip in crypto?

The one that immediately comes to mind is to buy the dip, which has become the go-to move for many crypto investors. This simply refers to buying a crypto when it has declined in price, and then profiting once the price returns to its previous level. This strategy works best in a market that is trending up over time.

What causes a crypto dip?

Many things can cause a crypto dip. Network overload, account hacks, regional bans, just to name a few. Usually, when an influential corporation announces acceptance of crypto, it’s a sign the price of that coin will rise. If that same corporation decides later to stop accepting the crypto, its price will likely decline.

How does crypto recover from a dip?

It usually comes down to track records. If crypto is still standing after numerous dramatic episodes like bitcoin, it’s likely to recover from a dip. When crypto drops in price, many investors will buy even more of it. Doing so makes the average price at which they bought that coin lower.

What is crypto & how does it work?

Crypto are digital assets —they have no tangible form. Cryptocurrencies exist and operate on a public ledger called a blockchain, which records all crypto transactions. Blockchain encryption is designed to make all transactions immutable and secure from tampering, counterfeit, and other forms of fraudulent transactions.