Down it goes! Dev sell? You quickly start to ‘hate it here’. Your gains are being flushed down; you should have sold earlier. Your 500% gain is currently down to 300%. Well, funny, but this is the typical feeling when the charts start to turn red. The paper hands grow weary and take profit…or stop loss. Whichever goes for them, leaving the ‘crashing’ market is the top priority.
Every cryptocurrency investor wants the chart to stay green and never red, at least until they get to their target and sell off. Only a few realize that the path to their target is filled with trials and tribulations. Now I said that the religious way, lol. If you’re wondering, I’m one of those investors who want the greens to prevail at all times. I mean, who doesn’t? well, only the guy waiting to ‘buy at a discount.’
Nevertheless; dips are inevitable, regardless. The chart goes red whenever a holder decides to exit the market, partially or completely. The extent of the dip depends on how many people exiting the market and how much control they have over the distribution. This is the main reason why whale movements are studied and dreaded. A whale exiting the market could shake it badly, the market could ‘tank’ depending on the whale’s holdings.
A ‘crash’ results when a huge number of holders exit the market simultaneously and for tangible amounts; but then, ‘dips are for buying’…maybe.
Dips are not only ridiculous, they are (very) poisonous. Cryptocurrency dips are sinister; not only are they sudden, sometimes they are wild. 20% loss within 20 minutes. It happens faster than that most times, everything a cryptocurrency investor dreads. Well, you were warned. This space is more volatile than chemistry lessons. Poor comparison if you ask me.
A dip could mean different things to different people and could trigger a whole lot of (different) reactions.
For the investors with loads of stable coins looking to buy at a discount, a dip is a good drug. Load up! A discount in crypto could mean a lot if the market recovers and takes off. The profits start to come as the market recovers. When the market return to its previous state, you’re already in gains. The percentage gain will depend on how much the market dipped and when you bought. But a gain is a gain, and any gain is a delight.
For the investor who just bought, the regret exists but could be different depending on the investor. For some, the regret is that they could have bought at a discount if the waited for a little longer. But if you believe in the project and hold off as long as required, then there is no ‘good’ time to buy. For other investors, buying was a mistake. Not sure if any advice should be given here.
Reactions to dips also differ. True believers would hold on to their bags and probably buy more as the discount is an opportunity. Others get paranoid and sell off, taking profit or stopping the running loss. Unto the next one, a move which might see the loss continue or the recovery started.
Dips are always unpleasant, except if you’re waiting to buy at a discount. Even after a 100% gain, an investor still frowns at a dip, but the charts can not continue to stay green. Dips are, in fact, important. That probably sounds harsh, but that’s what reality is. HODL and Buy the dip…with caution. Now that’s not financial advice!