Is Opensea’s 24-hours chart still credible?
I’m a cryptocurrency trader. I often use Opensea’s 24 hours chart as one of the primary indicators. The reason I used this is super simple. Because it indicates the current trend and what the people actually buying. So you can see the trend and research what you’ve forgotten or not known about NFT projects. It streamlines the research process so that you can narrow the limits of your search. Yet, I started to think that the volatility of the chart is too high. There are too many ups and downs in the chart. When you research the newcomers or ascenders, you probably can’t see them, the next day. There is no clear trend in the market. Also, you need to deal with the high fluctuations of crypto. This is the worst situation for an NFT trader. You always get the two-side volatilities in this market.
So my solution to that is two things. First, used 24 hours chart as an index, not the direct judgment of your financial decision. Consider various perspectives. Influencers, team, price, the buying wallets, rare’s last sale price. You need to reconsider more than usual.
Second, use the buy-on-scale method. Let’s set the condition you’re planning to buy 5 doodles. You can buy 3 for now, save the rest after 6 hours- a day. By using this time scale, you can avoid the total price risk and lower your average buying price. Yet, there are some possibilities you need to buy for the high price when the price increases. So it’s the two-edged sword you need to decide depending on the current.
That’s for today. Thanks!