Buy the dip!

It's one of those perennial pieces of advice that's always doing the rounds of the Cryptosphere, regardless of whether it's being spoken by a novice or an expert.

Sometimes it almost feels like a religion, among crypto-evangelists.

The phrase has always annoyed me a bit, in large part because it rests on the pre-supposition that we're not already fully invested. I know I am; I don't have any idle cash sitting around, waiting for "dips" to suddenly happen. I also don't have any idle cash coming from my "regular" income being greater than my expenses.

As a self-employed person, I don't have "regular" income.

The other thing about the proverbial dip is that how can we even be sure that this is a dip, and not just a long slow slide downwards that might last months or even years, with the token prices "dipping" much further than even the current dip?

We just don't know! Much of the time I just feel like responding "No thanks, I already bought the PREVIOUS dip, and am currently upside-down on THAT deal!"

Granted, a good bit of my investing experience comes from the legacy financial markets. Back then, the constant "flipping in and out" of an investment was the domain of a tiny number of day traders, not those who actually felt like they were investing in a promising technology, company or idea.

One thing that is somewhat similar is that the constant "buy the dip!" chorus was often fueled by a group of dedicated fanboys (and fangirls) who invariably had huge cognitive blind spots that rendered them completely unable to recognize that they were inviting people to jump onboard a slowly — but inevitably — sinking ship.

Throwing good money after bad is seldom a good way to secure your financial future!

Of course, we all have our own approaches to investing — and to life, in general.

Some people love the rollercoasters for their excitement, while others prefer to sit quietly on a park bench, feeding the pigeons. Each has its benefits and drawbacks.

What becomes important is being cognizant of what constitutes reality and what amounts to little more than fuzzy clouds of hopium." It's very easy to get trapped in the latter.

The Cryptosphere — particularly because it's a relatively new industry — is heavily populated with great promises that have no chance of going anywhere, in the long term. What's more, quite a few are designed to go nowhere, in the long term... amounting to little more than hyped-up promises that might make a handful of people very very rich, while everyone else is left standing with little more than pocket lint.

Being more of a "security oriented" sort of person, I have never been all that good at "picking winners," but I have typically been quite adept at NOT getting onboard the hopeless "schemes" with nothing to offer but hot air.

The other day I was talking to a (much younger) acquaintance about crypto, and what was interesting to me was how he had no expectations at all of any project he got involved with amounting to any more than the "initial hype/sudden death" cycle. Get in, make a few bucks, get out.

Whereas part of me admires the courageous part of that approach, part of me also dislikes it because of the way it contributes to an overall sense of "investing" being relegated to a "playing the lottery" type of game, where lasting value is — in fact — not valued, at all.

It feels like a lack of loyalty to anything; a world in which a person is only "loyal" to making a quick buck.

Of course, it's entirely possible that I am just "showing my age" here, and the world has outgrown my way of thinking, and what I find to be meaningful and of value!

This, of course, is NOT investment advice. Do your own research, and choose what's right for YOU!

Thanks for stopping by, and have a great weekend!

How about you? Are you a long term or a short term thinker? Do you like constant change, or stability? Leave a comment if you feel so inclined — share your experiences — be part of the conversation!

(All text and images by the author, unless otherwise credited. This is ORIGINAL CONTENT, created expressly for this platform — Not posted elsewhere!)

Created at 2024.07.13 09:51 PDT
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