Catching a falling knife
Buy low, Sell high. Easy right? A coin going down can initially look like a great buying opportunity. After all, a coin you're interested in, now costs less for you to purchase. Recall however that the markets are a zero-sum game. People take money from other people and everyone is out to get your money. So lets consider why you should and shouldn't buy a coin that is going down in price, aka catching a falling knife. The Dump after the Pump A steep decline in cryptocurrency price following a large price increase over a very short period of time (think minutes to hours) is not easy nor very profitable to chase off, especially if there appears to be no good reason for the initial pump. What appears to be significant news, such as partnering with a group or established company (e.g. Microsoft, ApplePay) is indeed going to increase the coin's likelihood of success, but only in the long-term. In the short-term, these types of news make little difference and instead the pum...