How to take advantage of a crypto hype: DigiByte
Let it be clear that I am not a financial expert but with some common sense and rationality you can make some good money when the perfect occasion arises. Digibyte's last rally was one of those perfect occasions to make money. Luckily I was already keeping my eye on them and managed to get in at EURO 0.0058 and bought some more at 0.0106 and 0.017. It eventually reached over 0.0600 on some exchanges (the graph below doesn't accurately show that but for illustration purposes its perfect). Current price actually is: 0.026 and you can see the point I got in in the graph below. I managed to get out just over 0.052 and I'll tell you why and how that happened.
So you can see 3 peaks and I managed to get in after peak one which luckily for me was the smallest one. DigiByte came to my attention as the volumes being traded increased rapidly and it was already on my shortlist. Why? Nice website (updated, which means they are still doing something), idea has potential and the team seems good. Besides that I always like penny coins when there is a hype as they can give you great returns. Just make sure you pick the right ones and make sure you don't get in too late as there are plenty of people that are now down 50% on DigiByte.
If you look at the graph below, showing the value of DigiByte (DGB) and the volume traded, you can see a direct correlation in the volumes traded and the price increase. High volumes caused the price to go up and low volumes got the price to decrease. After all 3 peaks there was a bit of a dip which is characteristic for basically all crypto's but why did I wait to get out in the third peak and not wait for peak number 4? 
The simple reason for that is the timing and the main reason why it all went up in the first place: The Tech 4 Integrity Challenge.
The T4I Challenge hosted by CitiBank with Facebook, Microsoft, MasterCard, IBM and PWC as strategic partners was on the 9th of June and DigiByte was one of the 104 finalists. In this crypto enthusiastic world just naming a coin with those names is enough to make 20% return within a minute. So a whole hype erupted and the price kept on going up. One day before the event, which we now know as the 3rd peak, I sold most of my DGB. Prices went down on the 9th of June and have been going down until today.
So why did I sell?
Why didn't you sell? What did you expect? DigiByte to hold their presentation and MasterCard to have a billion dollar deal ready for them to sign the same day? The coin was massively hyped and even though I got lucky with that whole hype I got out on the 8th of June as I knew there probably wouldn't be any news released the day of the event fueling another peak. It was pretty clear that on the 9th of June there wouldn't be any press release regarding a signed contract and the chances of DigiByte winning out of 104 finalists was slim. 99/100 people could come up with that but only a few got out in time.
An article that mentions a coin with a big name is enough to get people all hyped up as they don't want to miss out. All they see is money and common sense is nowhere to be found. Take advantages of the hype and there is no need to even analyze that specific crypto as all the other 'investors' pushing up that price aren't analyzing it. They just look at the nice looking website, think it is a good idea, possibly look at the team behind it and wish they didn't because now the price is 2% higher then it was 3 minutes ago. They buy and wait, not knowing what to wait for. Well since you have your money in and won't miss out on any gains from that moment on I suggest you take a few hours to think about the moment to get out. After that sit back and relax whilst waiting for that payday to arrive.
Do I still have DGB: Yes
Do I think DGB will go up: Yes
Strategy: Holding on
Waiting for: A new hype
Good time to buy: Yesterday was.
Graphs from: https://www.worldcoinindex.com/coin/digibyte
Great informative post!
i'm holding DGB myself. around 2 k of them.
I had the same thoughts about the coin as you!
Hold on and wait untill july. Rumors said it will rise big time.
Upvoted & followed!
Kind regards,
Thank you for the kind words, the follow (followed back) and the upvote Blackhat! Rumors mean money, well as long as they are positive lol. Hope you took advantage of yesterdays dip.
The thing is that people think they can predict things better than they can. I wouldn't risk my Digibytes on a hunch that they will continue going down. The market over reacted to bad news, which was actually no news and did not react to the good news after that.
Anyway, I'll hold on to my Digibytes for a long time still. Have held on since 2014.
I agree with the fact that people think they can predict things better than they can and so i started with the first sentence claiming I am not an expert. However, I think this was a predicable case as in my opinion the market didn't over react to bad news, it over reacted to good news. No news on the 9th just brought it back to 0.026 where it should possibly be after the good news.
I put all the money i made back in DigiByte so I just ended up with more DigiByte and will also hold on.
Excellent post. Initially, I was committed to Digibyte and holding for some time to come but after the latest 40% crash in value, I need to learn when to get out and take my earned value and rebuy after the dump. It's definitely an art... one I hope to master :)
Thank you. See that 97 people read it and only 7 people upvoted it so happy to hear you thought it was good. Getting out and then re-buying the coin again when its is lower is also my goal but if I am not too sure about the price going down I just hold.
I wasn't on Steemit back when I bought it but next time I will let people now. Just like i mentioned Bitshares was a good buy yesterday. Well guess what: Everything was a good buy yesterday.
Welcome to Steemit :)
I follow u, follow me back if u want lot of fun and amazing picture every day.
Thank you! I prefer reading and making money so i can make an amazing picture myself ;)
Interesting blog. I was about to start a similair discussion. The decision to buy a coin should be based on real analysis of the coin. I found that people keep buying coins without have any knowledge of them. This is considered high risk. I found this great website: https://www.coincheckup.com They researched and analyzed every tradable coin out there from a investment, team, product, transparency perspective. Really interesting.
Very good article. Nice to see I'm not the only one who thinks like this. The future is in blockchain. The issues is that people don't seem to care about the Trustworthiness of the current cryptos. This also happened in the internet boom. I was wondering if anyone of you uses: https://www.coincheckup.com. Every single coin can be analysed here based on: the team, the product, advisors, community, the business and the business model and much more. See: https://www.coincheckup.com/coins/DigiByte#analysis To see the: DigiByte Research report.