The already high price of Bitcoin makes new investors hesitant to buy the asset. One of the reasons for that doubt is the unpredictable changes in the price of Bitcoin, which creates a feeling of insecurity for novice investors.
Various safe ways can be used to overcome this and buy Bitcoin and crypto safely and without worrying. Anything? Get the answer in the following article.
Buy Bitcoin with Buying the Dip
Buying the dip is a method that generally means buying when the price corrects. Although it sounds easy, several aspects need to be considered. This is because buying the dip requires special attention from the technical side of the price.
Most investors and traders know that the fundamental and technical sides have an important, albeit different, role. In this method, basic knowledge of the technical side is required, which investors or traders can follow several steps.
Understanding Price Movements
The movement of financial assets is generally divided into three, namely moving up, down, and consolidating.
This method is suitable for use when the movement is up because, in an up movement, there will always be a correction.
Generally, this method is applied to charts of shorter timeframes but can be applied to entire timeframes. This is because the smaller the period, the more visible fluctuations.
Clarify with Pictures
One way to make it easier to apply this method when buying Bitcoin is to use graphics that can be modified with pictures.
For example, a line boundary can be used to simplify the application of this method to clarify the movement.
With the boundaries of these lines, it is generally more visible to move up and more accessible to see potential dips or corrections.
Generally, a dip occurs at the lower and middle limits of the price movement zone.
Waiting for Confirmation
Keep in mind that there are things to consider when buying the dip, as there is potential for it to continue to fall.
One of them is waiting for confirmation, where the confirmation can come from consolidation after correction or the existence of chart patterns and candlesticks that support the appreciation again.
Dollar Cost Averaging (DCA)
In addition, a safe way to buy Bitcoin is to combine this method with DCA, where you make purchases on dip instead of all your funds.
This can form a safe opportunity to start getting into the world of bitcoin.
DCA or Dollar Cost Averaging makes it easier for investors or traders to use their funds indirectly. This method of risk management allows fund owners to diversify over time.
Using Buy Limit Orders
The last way is to look for an exchange or platform that makes it easy to make limited purchases or limit orders.
This is because the buying the dip strategy is a retest that traders and even investors generally use to get the best time.
For example, when the price is corrected to the intended target, the buyer can set a limit order to buy Bitcoin immediately and not be left behind when the price rises again without paying attention to the 24-hour chart.
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