This is NOT Investment Advice, But It's How I "Buy The Dip"

Hypothetical Situation #1: You buy 1,000 shares of stock in Company A at a penny per share. The price rises to two cents per share. You sell your shares.

Hypothetical Situation #2: You buy 1,000 shares of stock in Company B at $100 per share. The price rises to $100.01 per share. You sell your shares.

In each case (excluding things like brokerage fees), you turned the same profit ... ten bucks. The difference is that in Hypothetical Situation #1 you risked $10 to earn $10, while in Hypothetical Situation #2 you risked $100k to earn $10.

I don't consider myself a cryptocurrency "investor" or "speculator" for the most part. I'm more interested in using cryptocurrency in commerce than I am in "buying low, selling high."

My usual version of "selling high" is that there's something I want to buy but I delay doing so until the US dollar price of whatever crypto I'm holding goes up versus the US dollar price I got it at such that my purchase leaves me with the same US dollar balance that I had at the former point.

But when Bitcoin takes a big price hit (as it has this last week for various reasons), I sometimes "buy the dip" by converting some of my BTC balance to a very-low-price cryptocurrency which has been falling as well, probably further/faster than BTC.

For example, yesterday I swapped about $50 worth of BTC (US dollar price $50-some-thousand per BTC) for about $50 worth of FIO (US dollar price about 2 cents per FIO). With swap fees, I think I paid about $52 worth of BTC for about $49 worth of FIO.

Over the next 30 days, I think it's a LOT more likely that FIO will double in price than that BTC will double in price (FIO was worth twice as much as it is now as recently as April; BTC has never been worth twice as much as it is now).

If FIO does about that well, I swap back and end up with a highter US dollar value in BTC than I had before. Not a huge amount of money, but not a huge amount at risk either.

I have secondary motives for picking FIO beyond it being very low in price.

One is that I like its purpose ("one identity for all your crypto"), which I've blogged about before.

Another is that in the past, I've done what I describe above and have ended up "making money." Not big money, but enough money for it to have been worth my time to mess around with it.