The other side of Buying the Dip you don't always see.

I know we are all eager to buy the dip and so i am . I personally bought some dip this round.

However, i know what we all think, myself included.

If a coin drops to $60 from $100, we buy the dip and wonder how much profits we would make when it get back to $100.

40% Profit right ? Well Yes but No.

Lets say Coin A has $100 price.

It dips to $60.

40% dip both in price and market cap right ?

So in order for it go back to $100, it has to made $40 price gains which is 66.67% Gains.

It's the same $40 decrease and increase but percentage aren't the same.

So it dropped 40% and in order for it to get back to its original price, it has to make 66.67% Gains.

And i am leaving out increase in supply, inflation & vesting unlock for simplicity sake. Those aren't good for you.

Always make sure you know how many percent gains your projects has to be made based on your bought prices rather than how much it has dipped.

Always calculate how much in % your project needs to gain in order to get to your target prices . If it is too good to be true to make it, it probably is.

Cheers !