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