Best way to buy the dip? Buy in layers

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Here is a suggestion of how I buy dips, I’m sure many of you have seen this before, but it might help someone. Lets use bitcoin for example, its at about 36.5k right now. If I have $10,000 to spend, I don’t want to just wait until it drops a bit and just spend the $10,000 all at once. I start edging in, just in case it goes lower to protect me from volatility. I set up buy orders:

$1,000 at 34k

$2,000 at 32k

$3,000 at 30k

$4,000 at 28k

This isn’t perfect, but it has protected me from volatility a bit and certainly stopped me from dropping all my money on a coin at a higher price.

Edit: Some people are saying this is DCAing. Dollar Cost Averaging is investing money at certain intervals regardless of the price. For my example it would be like $1000 a month over the next 10 months

submitted by /u/Ethernovan
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