Buying the dip is an investment strategy that is commonly associated with stocks. However, most cryptocurrency investors use this strategy to make the most out of their digital asset investments. It is important to know that you are advised to tread carefully while buying assets when the prices are falling. Therefore, it does not necessarily mean that you go all in, but “average in as the market goes down.” A better strategy is also to wait until the price settles and begins to change direction upwards and then buy into the digital asset. In this article, I will explore a couple of altcoins that have the potential to rebound as the crypto market settles.
EOS is the fifth largest cryptocurrency project with a market capitalization of $5.4 billion. It has a trading volume of $773 million in the last 24 hours. EOS has a total coin supply of 1,006,245,120 EOS but 905,245,118 are currently in circulation.
The project recently launched its much-awaited blockchain, EOSIO which is described on the website as “The most powerful infrastructure for decentralized applications (dApps).” The blockchain has the capability of supporting thousands of decentralized applications as well as achieve inter-blockchain communication. It is among the few blockchains that separate authentication from execution. EOSIO is slowly becoming the preferred platform for launching dApps in the industry. Moreover, its flexibility is on the highest level, where developers can freeze a broken application, then fix it.
You are probably wondering why EOS? However, we are exploring EOS because it has shown technology prowess by launching one of the biggest blockchain platforms in the world. Within a year of operation on Ethereum blockchain, EOS made it to the top five most valuable cryptos in the industry by market capitalization.
Moreover, EOS has demonstrated the capacity to recover from the dip before and it can also do the same after the current dip. Towards the end of April 2018, EOS recoiled; smashing its highs at $19.40 traded in January 2018 and achieved new all-time highs at $23.35. Although it is back to trading April lows, EOS has a sound technology, a vibrant community and is becoming the preferred network for launching apps and tokens in the industry. All these, coupled with the support from the team, a recovery is imminent, which means that it is the best digital asset for buying in the dip.
This cryptocurrency has a market capitalization of $3.9 billion. According to CoinMarketCap, it is ranked as the 6th largest digital asset. Stellar price is trading at $0.21 at the time of writing. The selloff in the market has sent it spiraling down 12% in the last 24 hours. There are a total of 104,184,649,455 XLM tokens but only 18,770,590,937 XML tokens are in circulation.
Stellar was created for the purpose of connecting financial institutions like banks, other payments systems, and the people. It functions on the pillars of speed, reliability, and affordability. It is important to note that the cryptocurrency is issued by a nonprofit entity; Stellar.org. Just like Ripple (XRP), it develops systems for sending money across borders. It aims at bringing financial inclusion to the communities around the world, especially those that are unbanked. Moreover, it uses its services to fight for the elimination of poverty while maximizing individual potential.
Although Stellar has not been able to beat its all-time highs traded at the beginning of 2018, it has made tremendous progress over time. For instance, it embarked on an upward journey in April, exchanged hands above $0.450. The trend lost steam short of $0.50 and resumed the downtrend to lows of $0.170 at the end of June. A bounce occurred in July but the upside was capped below $0.35. The current selloff has sent XLM/USD spiraling down again, but it is supported above $0.20.
The above price movement shows that Stellar is capable of a recovery from the dip. It is essential for an investor to find the best entry position when buying in the dip. As mentioned before, the best strategy would be to wait until the declines have settled and the price is staging a recovery. Most assets are bleeding yes, but a recovery will occur sooner or later. You can make the best of it! Happy investing guys!