Buying Bitcoin when its price is down ("buying the dip") is a popular, historically effective strategy for long-term investors aiming to lower their average cost. However, it carries high risks, as dips can precede further declines. Success depends on having a high risk tolerance and a long-term outlook.
There will be plenty of rises and dips in the price of bitcoin. There's no reason to buy just as it hits a high price. Wait until it goes down to a lower level. Buying bitcoin is like buying a TV or a computer - the best time to buy is when the price is lowered!
I would recommend slowly buying starting now and increasing if it gets close to your target. There is no guarantee that the price goes either way, but bitcoin has cycled up/down many times. It's possible it drops below 60k and never recovers again. It's possible it never gets below 60K again.
Ultimately, the decision to buy the dip depends entirely on your individual risk tolerance and long-term investment strategy. For many, buying these significant price drops is a sure way to enrich yourself in times of recovery which inevitably follow.
Prices are lower when the market is less busy. Although you can trade cryptocurrencies at any time of day, the market is more active during typical work hours and less active early in the morning, at night, and on the weekends. Generally, cryptocurrency prices start low on Monday and rise throughout the week.
The "crypto 30-day rule" refers to the IRS wash-sale rule, which does not apply to cryptocurrencies, treating them as property, not securities, allowing investors to sell at a loss and immediately buy back the same crypto to realize the loss for tax purposes (tax-loss harvesting) without waiting 30 days, unlike stocks. However, some tax authorities (like the UK's HMRC and Lanop or local interpretations) may have their own "bed and breakfast" rules that match sales and purchases within 30 days, affecting capital gains, so it's crucial to check specific tax jurisdictions.
The 1% rule in crypto trading is a risk management strategy where you never risk more than 1% of your total trading capital on a single trade, calculated by setting a stop-loss to limit potential losses, helping protect your overall portfolio from significant damage and reducing emotional trading. For example, with a $10,000 account, your maximum loss on any trade is $100, achieved by adjusting your position size based on where you set your stop-loss.
Elon Musk's stance on crypto is complex but generally bullish on Bitcoin and Dogecoin, viewing them as alternatives to fiat currency, though he's criticized Bitcoin's energy use (while also praising its energy basis) and has warned against reckless investing, emphasizing volatility and personal research; he's integrating crypto plans for his "everything app," X (formerly Twitter), while also banning certain crypto-related spam apps. He sees Bitcoin as a hedge against inflation and a way to secure value, unlike "fake" government money, and supports Dogecoin due to its meme status and potential connection to his government efficiency initiatives.
$Trump (stylized in all caps) is a meme coin associated with United States president Donald Trump, hosted on the Solana blockchain platform.
"We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions," Musk explained in a tweet, "especially coal, which has the worst emissions of any fuel."
Ramsey's Simple Three-Investment Rule
In a 2024 video, Ramsey said, "I have three investments — that's all I have: my business, paid-for real estate and mutual funds. I don't play single stocks. I don't screw around with gold. I don't mess with Bitcoin."
The Problem With Crypto
It's wasteful. He's criticized its massive energy consumption and how it facilitates anonymous transactions that can't be reversed. Unlike other digital payment systems, which he sees potential in, Bitcoin and similar assets don't align with his vision for practical financial innovation.
Bitcoin price is volatile
Consequently, keeping your savings with Bitcoin is not recommended at this point. Bitcoin should be seen like a high risk asset, and you should never store money that you cannot afford to lose with Bitcoin.
As it grew in popularity, Bitcoin became cumbersome, slow, and expensive to use. It takes about 10 minutes to validate most transactions using the cryptocurrency and the transaction fee has been at a median of about $20 this year. Bitcoin's unstable value has also made it an unviable medium of exchange.
Key Points. 1–2% Allocation is the Sweet Spot: Top institutions like BlackRock recommend keeping Bitcoin allocations at 1–2% of your total portfolio. This captures upside while capping downside risk. DCA Beats Guesswork: Dollar-cost averaging outperforms emotional lump-sum buying for most beginners.