Discount or discount? Crypto community educates us on market activities.
From buying more crypto to dollar-cost averaging (DCA), members of the crypto community shared their strategies for navigating crypto volatility and market dips.
After Bitcoin (BTC) reached above $48,000 on January 11, the market plunged to $38,000 on January 23, leaving traders who bought at the 2024 peak with a 21% shortfall. Due to market flooding, Cointelegraph reached out to members of the crypto community on X (formerly Twitter) to ask about their actions in such a volatile environment.
What is your strategy when shopping? Share your tips for navigating the dynamic.
— Cointelegraph (@Cointelegraph) January 25, 2024
In response to the debate, businessman Moe Iman brought up dollar-cost averaging (DCA), an investment technique that reduces the impact of volatility by spreading out the total amount of money involved in property purchases. Iman says it's important to “profit at the top” and not get attached to holdings so they can re-enter at the right time.
On the other hand, the crypto influencer Helene Ulker chose a simple strategy, which is buying more and waiting patiently when it goes down. A member of the community echoed this idea and reiterated that the strategy is to buy more. The X user said it was not a dive, but a discount on crypto assets.
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Another community member said it's wise to “keep calm” and reassess investment goals during market corrections. As an X user, it would be good to diversify the portfolio, know the market trends and set stop loss orders for their positions. “Patience and a long-term view will help you navigate volatility more effectively.”
Meanwhile, on-chain data shows that BTC whales have been buying dips. Data from intelligence firm Glassnode shows that entities with balances of 1,000 BTC or more increased by 3% when BTC ETFs began trading. The behavior suggests that whales may be expecting BTC to surpass its previous 2024 high.
BTC hovers above the $41,000 price point at the time of publication, while the total crypto market capitalization stands at $1.68 trillion, according to coin price tracker CoinGecko.
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