Buying cryptocurrencies under the effects of Black Friday
We've seen crypto markets in the red for several days, and it was only in the days leading up to Black Friday that the drop was most pronounced. But two days go by and we realize that "Oh Surprise", the markets start to turn green again. What does all this mean?
Black Friday, apparently, not only came this year to open product sales for the beginning of Christmas, but this year many experts have assured that this time it has affected the cryptocurrency market.
Crypto Black Friday
That is, with the currencies falling and everyone thinking that they were going to fall much more in price, the most alert and intelligent investors, like a child in a toy store, buyed of a good amount of the cryptocurrencies they wanted at a unique and unrepeatable price.
Buy after Black Friday
Still, we shouldn't feel bad if we weren't one of those smart investors who bought cryptocurrencies on Black Friday this year, because let's remember that:
- The market always offers good opportunities for the alert eyes.
- When the market starts to turn green, it is when there is still time to follow the trends (or at least in my experience is what I think).
To buy? Yes. Anything? No
But ... buying cryptocurrencies after two days (or more) of Black Friday have passed?
Buying cryptocurrencies in these cases is possible, but the fact is that we should not buy any cryptocurrency just because it is cheap, or because it seems that it is starting to rise.
As traders, we must study the charts carefully, doing technical analysis based on indicators that show us overbought and oversold points (such as stochastic or RSI); In addition, we must use the study of chart patterns, and form an opinion about the near future behavior of the cryptocurrencies that we want to buy. These studies should be done using charts in monthly, weekly, daily, 4-hour and 1-hour time frames (in addition to the time frames that we usually handle).
All this, for greater security in our actions, because just as it is a fact that with Black Friday and its effects we can buy cheap cryptos and obtain good returns, it is also true that there are many projects or cryptos that are taking advantage of this situation to fish in the troubled river, and to sell its "bones".
That is why I particularly prefer to buy cryptocurrencies from established and important projects in these cases. Because it is true that there are real offers these days in cryptocurrencies, but that does not mean in any case investing without care.
We must also have ourselves patience and make use of fundamental analysis to study all the crypto situation. Hopefully ... we're going to make enough money these days to cover turkey and wine this Christmas.
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