As markets go down, more and more people start looking for bottoms. At the same time, when markets go up, people desperately seek to find that little pullback to get in.
What Does BTFD Mean?
BTFD is a rallying cry used by traders to tell others to buy when an asset pulls back. When Bitcoin was on its way up from ten thousand to sixty thousand, a lot of people started yelling BTFD at any given red candle.
BTFD stands for buy the f*cking dip. Traders use it as a show of camaraderie, reminding each other that the red is only temporary, and their coin will soon embark on a rise to new highs.
The rationale behind the BTFD strategy (and yes, it is a real strategy) is that buying when an asset drops significantly provides the trader with a discount, because the dip is hypothetically only temporary. Even though BTFD is not a bad strategy in a bull market, investors are now starting to see that buying the f*cking dip is not a strategy that works in every environment, as the dips just keep coming.
Buying just because prices went down can put you in a bad position quickly. You must be confident that the asset will bounce back, and do not spend all your money in one go. Using a form of dollar-cost averaging (DCA) is likely to yield better results.
In short, BTFD (buy the f*cking dip) is used to remind each other to buy when an asset goes down and wait for the prices to recover before selling.
Where Does BTFD Come From?
BTFD is a modernized version of a long-time trading abbreviation: BTD. In true Gen-Z fashion, just buying the dip doesn’t do it. We must add an F-bomb to it in order for it to be complete.
Other than that, the strategy has remained pretty much the same, albeit that the use has been applied to a wider range of markets. People are buying the dip in shitcoins and meme stocks, while the seasoned investor of the past bought dips on fundamentally sound companies like Apple or JP Morgan Chase.
Examples of BTFD in Context
- “Ethereum fell all the way below 1500 dollars man, time to BTFD?”
- “I just BTFD on everything man, it can’t keep falling forever!”
- “Don’t panic bro, BTFD!”
All in all, BTFD is a popular term, especially during bull markets. When the tide turns, BTFD strategies are put in the closet, and they don’t get dusted off until the green candles return.
Will it be time to BTFD again soon?
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