This week, the popular cryptocurrency Bitcoin fell 11% and its price is around $ 42,400.
Since its last all-time high of US $ 69,000, the cryptocurrency accumulates a 38% drop and for this reason, in the main cryptocurrency investor communities, the expression “buy the dip”, which means in Spanish “to buy on the descent.”
It is a term used by traders and investors to refer to buy these cryptocurrencies when they have corrections and drops of more than 10%.
In other words, for investors, Bitcoin is “cheap” and for that reason, they consider this fall as an opportunity to accumulate the cryptocurrency.
How to buy “chunks” of Bitcoin?
To start investing in bitcoin, it is not necessary to invest US $ 42,000, but rather It is possible to buy “fractions” of the crypto, better known as “satoshis”.
What is a satoshi? A satoshi is the smallest fraction of Bitcoin. Each satoshi is equal to 0.00000001 bitcoins and one bitcoin is equal to 100,000,000 satoshis. For example, an Argentine can give away 0.0001 bitcoin, which is equivalent to $ 500.
In Argentina, platforms such as Defiant, Ripio, Buenbit, SatoshiTango, Lemon Cash and Belo allow you to invest from $ 1 to buy Bitcoin satoshis and accumulate them in a digital wallet.
Why do investors wait for dips to buy?
Investors hoard Bitcoin at low prices and wait for it to reach new highs to sell and make a profit.
Traders then inject these returns into other alternative cryptocurrencies to Bitcoin to generate more returns.
When the price of Bitcoin falls again, those profits that they generated with other cryptocurrencies are reinvested in the popular cryptocurrency.
But there is a second option: There are investors who trust Bitcoin as a long-term investment, not just a cryptocurrency to generate profits in the medium term.
So, they buy at low prices to do “hodl”, another term from the crypto community that means holding an investment with a long-term outlook.
This means that, in the event that Bitcoin reaches new all-time highs, The latter group of investors will not sell a single penny of the coin but will continue to bet on future increases.