Crypto Analyst Says Dont Buy Altcoins Just Yet Heres Why
Crypto analyst Crypto Banter has provided insights on whether or not it is the right time to buy altcoins. Specifically, the analyst had reservations about the idea that it was best to buy altcoins that showed quick recovery after a market decline like the one experienced over the weekend.
Not The Best Time To Buy Altcoins
In a live video on his YouTube channel, Crypto Banter warned crypto investors against sheepishly buying altcoins, especially crypto tokens that recovered quickly after the flush. He claimed that anyone who buys these tokens might fall into a classic trap. To avoid this trap, he advised that it might be best not to buy these altcoins now despite their impressive recovery so far.
Crypto Banter made these statements based on his belief that the bearish sentiment isnt over and that there will still be a lot of tensions in the market. Therefore, he noted that the best strategy to deploy in investing at this point is to use dollar cost average (DCA) in altcoins that have shown strength while being wary of the ones with bad tokenomics.
He again warned against investing in altcoins that have recovered quickly, stating that this doesnt mean those crypto tokens have relative strength. He further elaborated that to gauge the relative strength of a crypto token, one has to look at how much it dropped and how much it recovered after that.
How To Make Your Buy List
Crypto Banter also provided a guide that crypto investors could follow when compiling an altcoin buy list. He suggested that the key was to choose between the altcoins that have recovered the quickest and are showing relative strength and the ones that are relatively still cheap.
He gave the example of Ondo (ONDO) as one crypto token that has shown relative strength. Although it experienced a drawdown of 47%, it has recovered and is now just about 6% down from its peak. Toncoin (TON) also falls under this category, as he showed how the crypto token dropped down over 30% recently but has already recovered and is just 9% from its peak.
On the other hand, he highlighted RUNE as a really cheap crypto token, as it is down about 52% from its peak. He added that RUNE also happens to be a good recovery token. Crypto Banter also mentioned Arweave (AR) as another quality and cheap token, noting that it is about 41% down from its peak, meaning that one could get a good bargain from it.
Meanwhile, he added crypto tokens that have been unaffected by the dips as the third category of tokens that crypto investors could add to their buy lists.
Read more: https://www.newsbtc.com/crypto/crypto-dont-buy-altcoins-yet/
Text source: NewsBTC
