When you ask a Bitcoiner for some advice on the best strategy to use to take full advantage of the Bitcoin revolution, they will probably say the same thing I usually do: Buy Bitcoin, HODL Bitcoin, Repeat.
These should be the three main pillars of your strategy to take full advantage of Bitcoin in the future.
These three pillars are to be automated via a DCA (Dollar-Cost Averaging) buying strategy to smooth out your costs and prevent you from losing opportunities by waiting for Bitcoin's price to fall further and further when its volatility acts up.
To take advantage of the downward volatility of the Bitcoin price, you'll need to add another element to your initial strategy: Buy the Dip.
Those who are tired of buying the dip do not understand Bitcoin
If you've been around Bitcoin for any length of time, you've already read many Bitcoiners say, “Bitcoin price loses 10%? No problem, I buy the dip”. I've been using this strategy myself for several years now. So far I have never been disappointed. And I know I won't be in the future, given the incredible potential of Bitcoin.
By dint of reading this advice, some people seem to be getting tired or even bored. I've read on forums and social networks that some people are tired of having to keep buying the dip with Bitcoin. Seeing such messages made me laugh because if you think so, you don't understand Bitcoin after all.
Bitcoin is the best form of money.
In a world where everything is going digital, Bitcoin is an alternative system that will become more and more important in the future. The demand for hard money like Bitcoin will explode. Bitcoin currently has something like 125 million users.
That's a lot in just 12 years of existence, but ultimately still very small compared to the number of people on Earth.
The price of Bitcoin will not increase linearly in the coming years, so take advantage of every opportunity the market offers
We are only at the beginning of the Bitcoin revolution. Such a monetary revolution takes time Bitcoin has been phenomenally successful so far, and it will continue to accelerate in the future. Even so, it will take time. If you have faith in Bitcoin, then you will be able to be patient.
You will understand that Bitcoin is an accumulation game in the years to come. The more BTC you can accumulate, the better it will be for your future regarding money.
Buying the dip is essential because the price of Bitcoin will never increase linearly. The price of Bitcoin rises in waves. If I see Bitcoin's market cap reaching that of gold by 2030, I know that things won't happen in a straight line.
Instead, the price of Bitcoin will rise and then experience corrections and further crashes.
How can I be so sure of this? It's simple. Bitcoin is a free market, and that's what free markets do from time to time. They respond to the emotions of participants. Since Bitcoin constantly allows its users to find an equilibrium price, you necessarily have significant volatility from time to time when the market falls into extreme greed or extreme fear.
Buying the dip means acting in the short term with the long term in mind
The liquidations that we see from time to time in the market, such as the one that turned El Salvador's Bitcoin Day into Bloody Bitcoin Day in early September 2021, have significant short-term impacts on the price of Bitcoin, but they do not change what the on-chain data tells us about the general sentiment for the future of Bitcoin.
The prevailing sentiment is that the future that awaits Bitcoin is phenomenal.
So you have to learn to reconcile the short-term view with the long-term view. This means taking action by simply buying the dip. If you think Bitcoin is going to hit $100K and you bought it at $10K or $50K, you'd better buy it on a dip that takes it to $44K.
That's just being logical with your view of things.
Final Thoughts
There is no reason to be tired or weary of buying the Bitcoin dip. Think of it as opportunities to be seized. Learn to be patient and you will be rewarded in the future. Provided, of course, that you make Warren Buffett's motto your own when you buy Bitcoin:
"My favorite holding period is forever".
If you fundamentally believe in Bitcoin, it's the only currency that makes sense. It's up to you.
In Bitcoin We Trust Newsletter: Everything around Bitcoin, Blockchain, and the cryptocurrency market
