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October 02, 2018, 12:50:25 PM |
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The volatility of a coin usually has two phases aside the ATH, which are: the pump phase and the dump phase.
I do not just know why some people would decide to get into a coin only when it is pumping. Instead of buying when it has dump or during the bearish market, they would wait for it to pump first and then buy, thinking that the pump would continue till eternity.
If you believe in a coin through your research to have good prospects, why not buy at the dip and hodl until it increases in price.
Some would ask, "how do you know a coin is at the dip"?
There are some factors you need to consider before you can know a coin is at the dip. Although, that might not be the final dip, but that it still has the tendency to rise far above that.
1. You must know the sequence of events of the project. This can be known through their social media. You can also look through the graphical trend right from day one till the present time.
There are some updates (news), apart from FUD that can make a coin to dump more.
NOTE: A good project cannot be outrightly and permanently affected by FUD.
A typical example:
I invested and did the bounty of a coin called CCL (Cyclean). It was first listed on DOBI Trade, but investors did not have the opportunity to sell at that time, while it pumped. Immediately it was listed on Coinmarketcap and HitBTC with USDT pair, i had to quickly sell all i had from my investment, because i knew it would dump, owing to the fact that some private investors that bought huge amount and some bounty hunters would dump what they had. This i termed to be the beginning of dump.
The sequence of events after this were:
- Payment of bounty rewards
- Payment of airdrop tokens and so on.
I knew that these events alone would cause more dump.
Immediately i got my bounty tokens, i sold larger percentage of it and now holding just little with the hope of buying back at the dip.
Airdrop participants were the last paid and i was seriously waiting for them to dump and for me to buy back.
Although, the project is a very good one with a good usecase, it had different partnerships and yet, all these were not enough to bring about a pump at the time.
With not much surprise, when airdrop participants got theirs it dumped. So this phase is what i termed to be the dip, which is also in respect of the present bearish market, because that too must be considered.
So, without wasting much of my time and the opportunity at hand, this is when i can now buy, because i believe it will definitely pump even before the general market bull run.
This principle is also applicable to most other good projects. Follow the sequence of events and you would be glad you did.
2. This is the last part. It has been mentioned and i would just like to reiterate it. Put into consideration, the present state of the market. The crypto market is yet bullish, why don't you use this opportunity to invest into the coin and altcoins that you have studied and know to be good. Then wait until the market improves.
There are lots of opportunities now. So invest wisely.
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