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I'm a newby to the crypto world and one thing that I have seen a lot of is people saying to 'buy the dip!'.

Fair enough, I like that idea. However, I have limited funds, and so thought that the best way to go about this is to wait until Bitcoin is up, sell a bit, wait until the next dip and then buy some more...

The problem is that I do not want to keep all my coins on an exchange like Binance (there are a lot of horror stories floating around there), so I want to move everything to e.g. Exodus. That's fine, but then I will need to constantly transfer between Exodus and an Exchange when I want to sell or buy. This will undoubtedly incur high network fees.

What is the best way to go about this, without spending huge amounts on network fees? Can I convert some of my coins to a stable coin (if so, which one?) when selling and then convert back to my coin of choice when buying?

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"Buy the dip" is used by traders even for legacy markets and nothing specific for Bitcoin.

This will undoubtedly incur high network fees

For paying less in fees while moving bitcoin from/to exchange do the following:

  1. Use P2P exchanges: Bisq and HodlHodl

  2. Use open source bitcoin wallets with active development and support for segwit

  3. Use RBF for all transactions. Try with low fee rate and increase later if it doesn't confirm in time.

  4. Use websites like https://mempool.space that are helpful in managing bitcoin transactions with lots of information including CPFP details.

mempool-space

  1. Use layer 2 if possible especially for small amounts: LN, Liquid. Exchanges that support LN: Bitfinex, Okex, LNMarkets etc.
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  • Thanks - is this specifically for Bitcoin, or can I use this approach with altcoins, too?
    – pookie
    Mar 26 at 13:26
  • This website, above question and answer is only for Bitcoin. Altcoins are offtopic: bitcoin.stackexchange.com/help/on-topic
    – Prayank
    Mar 26 at 13:31

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