Over the last few weeks, traders across the market have been humbled by the performance of tokens in the market. Although most analysts have tipped the sector to experience a big break, none of them has happened. Presently, the market is trying to come back from a deeper crypto dip that it is experiencing. This is a testament to the performance of the majority of the tokens in the market, pushing the entire market cap to a negative region. Traders hope that the market will soon correct itself and profits will soon fly in. However, there are some steps that traders who wish to buy the dip must undertake. In this article, we will be looking into the top 5 tokens that traders can make a profit from their purchase after the crypto crash.
Steps To Follow Before You Buy The Dip
While most traders see every dip as a perfect opportunity to stack up more assets, most drops do not provide that opportunity. This is because the tokens might still be undergoing a bearish run most of the time. It runs them into losses, even more than the initial amount they have lost investing in the assets. Below are steps to undergo to ensure you buy the dip the right way;
1. Make sure the Crypto Crash is Over
One big mistake that traders make in the market is allowing emotions to override their strategy during a market crash. This is why it is paramount to have a strategy that you must follow for every situation in the market. This will help you eliminate massive losses and increase your profits. To buy a dip, traders need to ensure that the market crash is over before making a move. This will help them eliminate the possibility of encountering more losses when they choose to take advantage of the opportunity to make money. Although one cannot be sure when the crash is over most times, they need to watch out for trading signals to determine when to invest.
2. Check Technical Analysis
Traders in the market need to be conversant with technical analysis of tokens to know when to enter a position during a market crash. Looking at the technical analysis of a token will tell you so many thugs about the coin. This will help you shape your portfolio to ensure that you bring in massive amounts of profits. If you don’t know how to read technical analysis, you can check from various websites that provide notifications on coins and their technical movements. However, it is essential that you be smart about your investment, even with the technical analysis. This is because the market moves in funny ways most time.
3. Community Reaction
Another determinant of buying the dip is the reaction and sentiment from crypto communities. To help maximize your opportunity to make profits, you should be part of diverse crypto communities. This is because you would be able to gauge the sentiments towards particular assets and whether or not you need to add them to your portfolio. This is because a digital asset only has a chance to return to winning ways when many traders purchase it. So any token sounded out by the community has a higher chance of making it back from a bearish market than tokens with a weak or no community.
4. Market Volumes
Another determinant of a token making a comeback in the crypto market is the movement of volumes in the market. The consensus in the market is that the higher the market volume, the higher the chances a token has to make a surge. This is because market volume determines the number of tokens being purchased by traders. If traders buy a token more, the token will surely hit the roof in no time. As a trader, you should keep tabs on market volumes across diverse assets. This will help you choose a potential token that you can add to your portfolio.
Top 5 Crypto To Buy During This Crash
While most of the tokens are still making it back to post gains, this has provided an opportunity for traders to buy tokens with promise. Although these tokens show promise, they might still be affected by market factors. Below is the Top 5 crypto to buy after the crash;
The CRO token takes the first spot on this list with a cumulative 24-hour trade of $0.200, seeing a surge of 6.08%. However, in the last seven days, the token witnessed a declining run of 22.48%. The CRO token acts as the native digital asset of the Cronos blockchain. The blockchain is used to carry out decentralized services. A popular crypto exchange, Crypto.com, developed it. The blockchain uses the token to push the adoption of crypto for payments overusing fiat. This is one of the reasons why the token looks prime to make the jump. The CRO token has a market cap of more than $5 billion, while traders have moved $49 million worth of the token in the last 24 hours.
FTX Token (FTT)
The FTT token slides in at second place on the list, with the price at $32.09, seeing a small jump of 2.40% in the last 24 hours. Like the first place token, it is currently battling a loss of 5.11% in the last seven days. The FTT token acts as the digital asset used to carry out activities on FTX, another popular exchange in the market. The FTX platform was launched by a team of crypto traders who have seen the inadequacy of centralized exchanges. The platform provides users with a three-tier model to eliminate clawback. It does this by concentrating a portion of the fees paid by users on socialized losses. FTX presently boasts of a market cap of about $4 billion, with a massive $52 million worth of the token traded in the market in the last 24 hours.
Picking up the third position on this list is the FLOW token, currently trading at $2.99 with a 24-hour profit of 2.70%. FLOW is also still battling a loss of 31.41% in the last seven days. The FLOW token is the native crypto of the Flow blockchain, which was developed to be fast and adapted for developing blockchain apps. Traders who intend to build gammas and other applications can leverage the platform. The blockchain currently houses some of the biggest games in the crypto sector. According to the developers, they want the token to be inclusive and helpful in facilitating transactions across the border. Besides being a means of payment, it is used for reserve in the platform. Participants across the blockchain need to hold the tokens to earn rewards. FLOW presently has a market cap of more than $3 billion, with $47 million worth of assets traded in the last 24 hours.
In the fourth position, we have Hedera, which is currently trading at $0.102 with a slight bullish run of 0.89%. The token is presently seeing a loss of 20.68% in the last seven days. HBAR is the native token of the Hedera hashgraph platform. The platform prides itself as a public network that provides decentralized services for companies in the crypto sector. The platform enables proficiency through the elimination of issues like sluggish performance. HBAR, on the other hand, carries out two distinct activities on the platform. Traders can leverage the token store files, facilitate smart contracts and pay for transactions. Besides that, traders can also stake the token, earn rewards, and secure the platform. HBAR currently has a market cap of about $2 billion, with traders moving more than $34 billion worth of the asset in the last 24 hours.
Completing the list is EGLD which is trading at $92.95 with a 5.64% surge in price over the last 24 hours. EGLD is also seeing a loss of 18.49% over the last seven days. Elrond is a blockchain that helps users speed up their transactions using the sharding technique. Branding itself as the next best thing, the project combines IoT, DeFi, and the Fintech sector. According to several sources, its smart contract can execute more than 15,000 transactions in seconds. EGLD is the native token of the platform, and traders use it to pay transaction fees and stakes. Validators on the platform also earn rewards in the native asset. EGLD currently has a market cap above $2 billion, with more than $62 million of the asset moved in the last 24 hours.
The crypto market is currently destabilized as the bears continue to show their presence. However, traders can leverage the tokens above to make profits during this bear market. Traders should carry out intensive research into any tokens they intend to purchase. It will also help if traders diversify their portfolios as it would help them limit the hit of the market decline. Finally, the tokens above are not financial advice as traders need to carry out intensive research on them.
You might also like
More from TradingView
Is Litecoin dead? Should you buy Bitcoin instead of Litecoin? Let's assess Litecoin price and the difference between Litecoin and …
Cardano is being further developed from a scientific point of view and is ahead of its competitors. Can Cardano reach …