A dip in cryptocurrency refers to a “reasonable” drop in the value of a coin or a protracted downturn in its value.
The Long Explanation
A dip literally means to quickly let something down or briefly let it down into a liquid. In cryptocurrency, it refers instead to a drop in the value of a digital currency, and is often identified as a “valley” on a price chart.
A number of crypto slangs and terms are typically associated with these low points for crypto investors, with the most popular being HODL, Buy the Dip, and BTFD.
HODL is a typo (for ‘hold’) crypto slang that urges investors to ‘Hold On for Dear Life’ after a market dip. The phrase rides on the belief that market volatility is a given, and that prices will always go back up (possibly attaining new heights), and encourages investors to remain in a project despite their losses.
Buy the dip, on the other hand, encourages investors to consolidate their positions in a coin or token that is experiencing a decline in its value. Once again, it promotes the overarching belief that prices will always rise, and that increasing your position in a dip is a great way to build on profit margins.
BTFD is a vulgar form of the Buy the Dip slang, which reads in full as “Buy The F***ing Dip”. It promotes the same ideas as Buy the Dip, but in “stronger” terms.
When making decisions during times of market dips, it’s always important to balance out your emotional attachment with technical analysis. Proper research is needed to ascertain whether a dip will be temporary, or whether the reduced prices will be the new market reality.
