Having trouble buying the dip? Or better said, do you have a hard time predicting dips. It's never easy to "guess" where the bottom or floor is of a cryptocurrency's price before the next run to the top. And most don't get it right, not at all. Instead we buy at what we think is the bottom and HODL on until the
profits are clear as day. If you do it correctly and without emotion.
A great technique to have in you arsenal during this tedious process is dollar cost averaging or DCA for short. What this enables you to do is ensure that your average buying price is good and acceptable by buying small amounts at certain or fixed points in time. Let's say you have a $1 and you really want to buy #Randomcoin because it's dipping. Randomcoin is now at $0.25. You can buy 4 Randomcoin with you 1 dollar and your average buying price would be 25 cents each. But maybe that's not the bottom and it goes down even more. Now you're possibly pulling your hair out.
With the method of DCA you could then split your 1 dollar into 2 times 50 cents, and then buy with one 50 cents when Randomcoin is 25 cents, and once more at a price dip of maybe 20 cents.
Your total amount of Randomcoin would then be 2 Randomcoin from the first buy (0.50/0.25) plus 2.5 Randomcoin from the second buy (0.50/0.20) which equals 4.5 Randomcoin. Because you spent a total of $1 you can then calculate your average buying price buy diving that 1 dollar with 4.5:
$1 / 4.5 = $0.22 per Randomcoin.
But enough math, the point of this all is to spread your buying power giving you a better average buying price and at the same time lowering the risk of your actions. You can divide the amount of money you have available into more than 2 times possibly giving an even better average. It's also up to you if you want to buy only when you see a dip or at any fixed periods in time, like the end of the month. In the end you will find that strategy and research with little emotion are a clear and precise way to go.
