Buy the Dip
Also known as: Dip Buying, Value Entry, Crash Accumulation
An investment strategy of purchasing assets after a price decline, aiming to profit from future recoveries.
"Buy the dip" is a trading and investment strategy that involves purchasing assets following a price drop, based on the belief that the decline is temporary and the asset will rebound. It’s common in both traditional markets and crypto, where volatility is high and price swings are frequent. The strategy assumes the underlying fundamentals remain strong and aims to take advantage of market overreactions. However, it carries risk—prices may continue to fall, leading to losses. It's often used in conjunction with technical analysis and sentiment tracking.