Is it the best time to invest in crypto now? Isn't the big dip in the market enough of a sign for us to stop putting our money into crypto?
Photo by Maxim Hopman on Unsplash
Disclaimer: The following post about cryptocurrency is intended for informational purposes only and should not be considered as financial or investment advice. The content provided is based on personal analysis and opinions, and individual readers are solely responsible for any investment decisions they make. The cryptocurrency market is highly volatile and speculative, and prices can fluctuate rapidly. It is crucial to conduct thorough research and consult with a qualified financial advisor before making any investment in cryptocurrencies. The author and publisher of this post do not assume any responsibility for the accuracy, completeness, or timeliness of the information provided, nor do they guarantee any specific outcomes or results related to cryptocurrency investments.
If you have read my previous article - "Why is Crypto Crashing Today? A Conspiracy Theory" - you will understand why it is good to buy good coins now. But to explain it further, I'll provide my analysis in this post.
First, we need to understand the factors that contribute to the growth of a cryptocurrency's value.
How does cryptocurrency grow its value?
The main factor that makes crypto grow its value is when someone buys it, which is called "supply and demand dynamics."
Supply and demand dynamics: Like any asset, the value of a cryptocurrency is influenced by the balance between its supply and the demand from buyers. If there is high demand for a particular cryptocurrency but a limited supply, its value is likely to increase.
Cryptocurrency doesn't grow its value if there is no money in it.
To explain it simply, the crypto's price goes up when someone buys it, and it goes down when someone sells it.
Let's consider a simple example:
Let's say Person A bought a few at $1. The price of the crypto will change a little, so little that you won't see the change.
Then Person B bought a lot at $1.something, which made a big difference and changed the price to $1.5.
Then Person C bought a few at $1.5, which also did not create an impact on the market value.
Then Person D bought a lot at $ 1.5 something, which increased the market value again.
Now, if Person B sells all of their holdings, the crypto price will fall back to $1.something.
Think of crypto investing as positioning, where your position is the price at which you buy in.
If you bought at a low price, that is your position. If you bought at a high price, that is your position.
Your position doesn't change if someone buys at a lower price than you and decides to sell.
So why is it good to buy crypto now?
Photo by Kanchanara on Unsplash
Since there is a big dip in the market now, those people have already left their positions. Read my previous post to know who those people are. Ordinary people need to fill those positions now because if the conspiracy is true, they will come back again to fill those positions.
Individual investors should fill those lower positions in the crypto market before any group with malicious intentions fills them up again, just to dump them again in the future, leaving those who buy after they bought disheartened.
If common people can fill the lower positions in the crypto market, we will be safe from massive dumps caused by groups whose purpose is to put down crypto.
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Hi there, my name is Dennis and I'm from the Philippines. In my free time, you'll usually find me tending to my garden, sketching out new drawings, or writing about life, love, relationships, struggles, and faith.
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