Buy the Dip

Definition ∞ Buy the Dip refers to purchasing an asset after its price has decreased. This strategy involves acquiring cryptocurrency or other digital assets during a temporary price decline, operating under the expectation that the asset’s value will subsequently recover and rise. Participants aim to capitalize on short-term market corrections or pullbacks, viewing them as opportunities to acquire assets at a reduced cost. It relies on a conviction in the asset’s long-term value and recovery potential.
Context ∞ The phrase Buy the Dip frequently appears in crypto news during market corrections or significant price drops, reflecting investor sentiment and strategic discussions. Debates often occur regarding whether a particular price reduction constitutes a temporary dip or the start of a more extended downturn. Understanding this concept is crucial for interpreting market commentary and investment advice in volatile digital asset environments.