A dip is when markets experience a short or protracted downturn.
Many cryptocurrency investors only became familiar with the crypto market after the downturn of the cryptocurrency market all the way back in 2018. In fact, it was throughout this year that plenty of investors managed to learn how risky and speculative the crypto market can actually be. But buying a coin or a token in a downtrend does not actually mean that its price is guaranteed to increase over time, as there are risks involved with just about anything you do in terms of investing.
You need to have strong emotional intelligence and understand the nature of the market you are engaging in.
Dip buying even has the capability of lowering your average cost of owning a position; however, the risk, as well as the rewards of dip-buying, needs to be evaluated on a consistent basis.
Keep in mind that buying the dip does not in fact mean that you are guaranteed any profits. An asset can drop for a multitude of reasons, and these include changes to its underlying value. Just because the price is cheaper than it ever was throughout its history does not imply that the asset represents good value.