The dangers of buying the dip if you are new

Today in the Cryptomarket there's a bloodbath. Most of the major coins and alts are in red, experiencing a loss between 10 percent and 25 percent of their 24 hour value. Bitcoin nearly reached the price bottom of what it has been trading the past month with a valuation of around $53,000.

This bloodbath, presents both an opportunity and a danger to crypto investors. You will hear left and right "Buy the dip!"

Basically this means going after an asset and buying it after it has experienced a drop in price, considering this drop as an opportunity to accumulate more as the asset will bounce back or increase in value.

Nevertheless, if you are new to the sphere and trading there is a number of dangers if you go after every dip you see in the market. Especially if you do not know how to read and interpret charts or don't time it right.

Timing, is one the dangers that most people fall into. You should be turning your crypto in stablecoins ready to buy the crypto of your choice as soon as the correction hits and not when you it has bottomed out.

Getting into the wrong alt coin is also a danger. Let's say you have converted your assets into USDT, BUSD, USDC, etc. Then you decide to buy into some crypto without real work case, development, solid team, etc behind. You never know when that alt coin is going to hit its bottom and start recovering and it may never recover again to its previous levels. With the top 20 tokens you know it is different, you know they have a bottom that is predictable as there will be strong buy walls and that steadily after the correction they will bounce back.

Then its the psychology of the down-spiral. Let's say you invest your money to buy the dip and today's bloodbath continues into a downward volatile spiral then the value of your tokens will be lowering every day maybe followed by some short-term day advances. This will lead non-level headed investors, who browse every 5 minutes in their wallets and exchange accounts to question their strategy and start panic selling assets. The better choice here is to reinvest in the top crypto assets as these are the ones again to bounce back faster and to experience less losses.

You should be also accumulating some stablecoins in crypto for days like these, in case you do not know how when to sell, so that you can re-buy with profit. You can use the stablecoins to buy with less danger of liquidating your most valuable crypto assets in the process of trying to do that.

In the end of the day, if you are new, if you do not have experience in trading, if you are risk averse, and if this whole process makes you anxious you do not need to buy the dips, you just need to relax, stop checking your phone every 5 minutes, hold on to the most serious assets and offload the shitcoins and speculative alts.

We are here for the long term and days like these are bound to happen from time to time. We just need to ride them out and accumulate more.