The past weeks have been the most unstable times for the cryptocurrency industry, as many of the digital currencies’ prices tumbled beyond imagination. Individuals or entities involved in crypto-related activities were literally in shock, after the crash. They were worried about the upcoming as well as existing projects in the market.
However, a few of the individuals did enjoy this dip.
As per the market experts, ‘dip’ is the best time for buying cryptocurrencies at a lower price.
During an interview with CNBC’s Trading Nation, the CEO of the New Street Advisor Group, Delano Saporu said, “For investors that are thinking long term, this is actually a great opportunity to buy at prices you may not see for a while.”
Saporu pointed out the last major correction which the industry experienced in 2017. After an unprecedented boom on December 17, 2017, the value of Bitcoin came down by 45 percent on December 22, 2017. The dip lasted till 2019, but gradually the digital asset started picking up the pace in the market and hit an all-time high this year.
However, this boom also didn’t last much longer because of some negative catalysts like China barring the financial institutions from offering their services to the crypto-related activities and Tesla not accepting Bitcoin payment.
But the individuals should not get disappointed, in fact, they could consider this as an opportunity to buy more cryptos.
How Buying Dip Can Be Helpful?
Buy low and sell high is the fundamental strategy of investing. Traditional financial investors are using this approach for a long time. When cryptocurrency was introduced into the market the crypto investors also adopted this approach.
But, everyone. who is the part of crypto space, has one common question in their mind, “Whether the dip is predictable?”
It is difficult for anyone to predict the market dip but it is not impossible. In order to predict the movement of the market, one must be able to employ complex strategies and technical study patterns to analyze the price movement.
Any individual, who does not understand the technical pattern, could analyze a few of the signs which market shows before experiencing a dip. These signs are worth acting on, they could help anyone predict the approximate situation of the market.
One of those situations is when the market gets favorable, the cryptocurrency experience uptrend. But suddenly the market takes a U-turn and the value of digital asset collapses. That could be the chance for investors to buy the dip.
Another situation can be when the market fluctuates throughout the day. As soon as the price of the cryptocurrency comes down, the investor can purchase it.
The market experts believe that the dips are profitable. They offer huge returns to the traders.
Recently when the market drop, many traders started the panic sale, which was not a good option, this helped the market whales and long-term investors a lot, as they were able to buy more tokens at a low price.
Best Cryptocurrency For Investment
JC O’Hara, the chief market technician at MKM Partners, during an interview on CNBC, stated that Ethereum would be the better option regarding future investments.
O’Hara, while discussing the Bitcoin chart, stated, “I don’t think the selling is over just yet.” Following that he talked about Ethereum, specifying that the world’s second-largest cryptocurrency, according to market cap, has formed a bullish cup-and-handle pattern, which technicians believe shows an upward trend of the digital asset.
Apart from that, there are few other cryptos which shows potential in 2021:
Cardano (ADA)- This year has been a great start for Cardano, as Charles Hoskinson, the founder of Cardano, released its upgraded version. Soon after the release of the upgraded version of Cardano, ADA’s value also shoots up. Market experts find this project very promising for the future.
Its ability to build a smart contract on the network, offering a platform to dApp developers, low transaction fees are some of the reasons, it is getting recognition in the market.
Dogecoin (DOGE)- Since, this meme coin got Elon Musk’s support it started performing well in the market. However, currently, its market is down because of the crunch, it is being expected that as soon as the market picks up, Dogecoin would be among one of the most popular coins in the market.
Many market analysts believe that as per the present scenario, Dogecoin is a viable investment option for anyone. To date, this meme coin has generated a return of over 8000 percent and touched the mark of $0.69. Presently, its market may be down but in the future, it is expected to grow more.
Uniswap (UNI)- This Ethereum-based dApp allows the users to trade Ethereum tokens through liquidity pool. UNI may not be very much popular in the market, but it is one of those DeFi tokens which can make its entry in the top race.
Chainlink (LINK)- LINK has consolidated its place at 11th position as the most valuable cryptocurrency in the market. It’s market capitalization has surpassed $20 billion.
These are the few cryptocurrencies, which presently are doing well in the market. Although there has been a huge drop, in the future, these cryptos are expected to offer higher returns to investors. These are the few promising projects which have a bright future.