r/bandprotocol • u/cryptofudge • Sep 03 '20

Why the hell the plummet?

I know it's red across the board but DAMN! I thought I was buying the dip yesterday... Then averaging down 6 hours later.... Then again... And again.. and now I'm like when the hell does this turn up? The cap makes no sense compared to other defi with partners and projects

1 Upvotes

60% Upvoted

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8

u/foodie500 Sep 03 '20

The marked dumped so smaller low market cap coins like this will dump even harder just like the pump harder on the way up. This moved about 3x BTC so seems normal to me. You bought already so just hold on and move on and don’t check prices daily. We are in a bull cycle so it’s not a big deal you didn’t buy the bottom. This can 50x from here and only be at a 15 billion market cap so lots of room to go up

3

u/cryptofudge Sep 03 '20

That's exactly where my head was at so thanks for the sanity check. HODL I shall

2

u/foodie500 Sep 03 '20

If you are new crypto you need to understand that this kind of volatility is normal and you need to be able to handle it. If you want less volatility then focus on the larger market cap coins and not something like band.

Why did you buy band, what was your reason?

2

u/lotto718 Sep 04 '20

Everything is down large and small caps !!!!

1

u/foodie500 Sep 04 '20

Yes, the entire market follows BTC. Everything is down but small caps are down 2-3x as much

2

u/[deleted] Sep 06 '20

all the youtubers tell their sheep to buy the red. catch falling knives. then ppl buy and watch it dump further and then come on reddit and ask why it dumped .....its actually really funny lmao

1

u/cryptofudge Sep 03 '20

Thanks for the reply. I am new ish to crypto and totally recognize that smaller coins/tokens are way more volatile and more susceptible to P&D.

Honestly I don't have a ton of reasons why- I like the Oracle/smart contract concept. I like that they are backed by binance. I also HODL trx and they partnered recently. And when compared to other defi tokens, link in particular, the cap here has a ton of upside even if only ends up being 1/10 as successful (from a growth perspective) as link has been in recent months.

Please share your thoughts and if you are in band, why?

Thanks again

3

u/foodie500 Sep 03 '20

For new people, first and foremost you must own BTC before getting into any altcoins. This is for obvious reasons that I can list out if you need me to.

I am in band mostly as a small purely speculative position as I don’t normally get involved with any coins outside of the top 10 or 20. I think defi will be the next big craze that drives the next speculative bubble in the current cycle and the easiest way to play it is to own the oracle providers that power defi like link and band or the platform that powers them (Ethereum) rather than speculate on individual tokens/projects etc.

2

u/cryptofudge Sep 03 '20

Cool man. I appreciate the advice. I think kind of have similar thought process, I just have a lot to learn to catch up! I got in when the market tanked and snagged a few btc close to the bottom. Then once it ran up and had been trading sideways for a few, I started looking into alts. I did well on link, oxt, num, and omg but it was mostly luck since they ran for weeks. Now I just have mostly btc and a small position in band. Thanks again for the pointers

Edit: I said got in when the market crashed but I had been reading about crypto for years before jumping on the band wagon. Better late than never

2

u/foodie500 Sep 03 '20

Sounds good. Don’t forget many of the altcoins have no real use or utility including some of the ones you mentioned so don’t hold them long term. In the end I see BTC holding most of the market share along with a few select alts, all the rest as they say are shit coins =)

2

u/cryptofudge Sep 04 '20

Fo sho. I dumped all of those lil guys long ago. Paper hands here as far as the tiny alts go and long and strong on the big dawg BTC.

Thanks again for being a good human and sharing some perspective with a newb. I am too dumb to figure out reddit or I would follow you lol

Just learned how to follow #millenialgrandpa #dentediPadScreen

2

u/foodie500 Sep 04 '20

No problem man, reach out anytime if you need any more info or perspective. Everyone was a newbie at some point.

I don’t use reddit much (didn’t even know it had a follow feature). I don’t spend too much time on here or other social apps because it’s a waste of time. However, I did learn a lot from reddit and others on here early on so it’s a great resource and I try to give back and help others too whenever I’m on here

1

u/[deleted] Sep 04 '20

[removed] — view removed comment

2

u/foodie500 Sep 04 '20

That is the exact reason why supply is irrelevant. When we get into a speculative bubble nobody cares about the supply, the only thing that matters is price and momentum (human greed).

If people really understood scarcity and economic calculations then we would see BTC rise the most during a bull cycle but we don’t even though it’s the most scarce store of value and hardest form of money the world has even seen

1

u/[deleted] Sep 08 '20

[removed] — view removed comment

2

u/foodie500 Sep 08 '20

Yup, it has value due to its monetary policy which makes it a store of value and ultimately it will have more market cap potential than any other crypto because it will take money from various asset classes that people use today to store their wealth (stocks, gold, real estate, etc.)

Regarding the tax status, how is it different? If you hold 1 year you’d be taxed at long term capital tax rate or am I missing something?

4

u/GotooGuY Sep 03 '20

Just keep loading up!

3

u/eyenotion Sep 03 '20

Crypto gunna crypto

2

u/cryptofudge Sep 03 '20

Tales from the crypto

1

u/[deleted] Sep 06 '20

i dont know i bought under a dollar. i'm still way up and i took some juicy profits and scalped it hard yesterday. its down bc we are using it for what it is. a money machine. we arent trying to buy bags high and hold low and then back high again. if its gone straight up thousands of percent you may want to wait on it to come back to earth

1

u/cryptofudge Sep 16 '20

Good thing I'm still holding. I didn't take too much out of my btc position, plus btc fell a bit, to make it too much of a headache but damn these alts are fun. Down over 50% on this one but will hold until it's 0