People are buying the dip; is there still hope for these hopefuls — PrivacySwap weighs in

Buying cryptocurrency on its dip is what we normally do. This is one of the apparent suggestions from the “experts,” buy the dip and sell when the price is right. However, this time the reason for the dip is different: it’s because of a rug pull. So why are people still buying? Is there still hope in this situation?

Despite the massive drop of LUNA, investors continue to trade the token, which has lost 99 percent of its value from $62 on May 9 to less than a cent by May 14. However, as of May 20, LUNA is still the most popular cryptocurrency on CoinMarketCap.

LUNA has a market worth of $918 million and is currently trading at $0.00013 per coin. The coin has gained 1% in the last 24 hours and 75% last week. However, the crypto crash remains today. In fact, at the moment of writing, the token price dipped more to 0.00012USD per token. Adding to the controversy, the South Korean government is looking into penalizing the developer of the token for $78 million in tax evasion.

South Korean authorities are investigating why Terra’s dollar-pegged stablecoin, UST, lost its peg on May 9. Within four days, the market for this coin had melted down. As a result, the stablecoin suffered an $18 billion loss. This impacted the stablecoin UST and all networks based on it, including LUNA, whose price dropped from $62 per coin to a fraction of a penny.

What’s the benefit of buying the dip?

Buying the dip is not as simple as you think. In fact, there is a lot more to this decision than just controlling the crypto dip. There are numerous factors to consider, such as the best moment to buy, which coin to obtain, and how much.

Even if there was a consistent uptrend prior to whatever transpired that sent it down, not all crypto dips guarantee a profit. There is a perfect time to buy the dip, and there are also times that you need to really take the risk. For example, never buy the dip when the token is about to crash.

It’s not a good idea to buy when you can’t tell if the dip is a brief decline or the start of a downtrend.

A variety of factors can cause a cryptocurrency drop. To name a few, network overload, account hacks, and geographic prohibitions. When a large firm announces its adoption of cryptocurrency, the price of that coin usually rises. If that same corporation later decides to cease accepting the cryptocurrency, its value will most certainly fall.

Before buying the dips, determine what triggered them and whether the market will right itself later.

On the other hand, if the crypto is well established and is showcasing an excellent upward trend, you might consider buying the dip.

An uptrend occurs when the price of an asset moves in an upward direction. As a result, its peaks and valleys are typically higher than the previous peaks and valleys. This means that if the price falls, it is very likely to climb again.

Many investors buy the dip when a coin or stock pulls back, assuming that it will soon recover to its former position. While this strategy has had credible achievements, it is still a working theory. In truth, there is no way to predict what an asset will do.

Using the signal line is one way to reduce the dangers involved. For example, if a cryptocurrency is known to be on an upward trend, its lowest position should never cross this line. This is because the coin in question may have started a downtrend when that happens, making everyone who bought the dips losers.

Writer’s PoV (not financial advice): I personally consider buying the dip. There have been times that I gained a lot, and there have been times that I feel unimpressed about the situation.

For instance, I remember purchasing a few tokens from one of the most popular NFT games recently. I bought around 5,000 tokens. I was very optimistic that this investment would provide me a fantastic return like what it did to its early investors, but no. Because of an incident which caused the price to dip dangerously low, my tokens continue to sit there waiting for a miracle. With that, I realized that buying the dip does not work for everybody all the time. Knowledge and proper research are still necessary in order to properly understand the market before investing an amount.

PrivacySwap Takeaways

Crypto dip is not unusual in space. It happens all the time. Every investor must always prepare himself for whatever happens in his investment. Always remember only to invest the amount you can afford to lose.

Moreover, we are very close to releasing our PrivacyCards. We are all busy talking to investors, other platforms, and influencers to help us share the amazing benefits of PrivacyCards. In fact, we will have another set of AMAs to share more details about PrivacyCards. You can watch our live AMA at our official Youtube account. Prepare your questions and share them with us on the webinar. Additionally, it is also the perfect time to buy our PYDEX. We mean, look at this.

We are very excited to see more of this graph, and we are also glad to share the amazing benefits of our PrivacyCard, PrivacyOracle, and the DEX. So if you want to experience any or all of these, follow us now!

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