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Published on Feb 24, 2022

Dip

Author: Rubin
#Glossary
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A dip refers to the sudden downtrend within the market. In the traditional market term, a dip is often associated with putting down something quickly into liquidity. Gradually, crypto investors are also becoming familiar with the term since several downturns of the market in the past few years.

Another phrase that is common among investors is ‘buy the dip’. This strategy involves further investing in a given asset when the prices are experiencing short-term declines repeatedly.

Bear in mind, buying the dips never guarantees profit whatsoever. There could be a plethora of reasons due to which the price of an asset decline. This changes the underlying value of the asset altogether. Getting something dead cheap doesn’t assure guaranteed returns.


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